BMW Industries witnessed a sharp rise of almost 9% in its share price during intra-day trading on Thursday, March 20, following the company’s announcement of a substantial capital expenditure (capex) plan worth ₹800 crore. The multibagger stock, which has delivered an impressive 250% return over the past five years, gained momentum after the company disclosed its plans to set up a greenfield downstream steel complex in Bokaro, Jharkhand.

In an exchange filing, the company stated:

“The Board of Directors of BMW Industries Limited (“the Company”) at its meeting held today has approved capital expenditure (Capex) of ₹803.47 crore for the establishment of a Green-field Downstream Steel Complex at Bokaro, Jharkhand. The project will be funded through a mix of Internal Accruals and Debt.”

Following the announcement, as of 1:30 PM IST, BMW Industries share prices were trading at ₹45.90, a 4.01% increase from its previous close.

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BMW Industries Announces Expansion with New Manufacturing Facility

BMW Industries revealed its expansion strategy by confirming plans to build a manufacturing unit in Bokaro, Jharkhand—India’s second-largest steel-producing state. The proposed facility will house a Downstream Steel Complex, designed to produce 300,000 TPA of Cold Rolled Full Hard Coil/Sheet, 540,000 TPA of Galvanized Coil/Sheet, and 200,000 TPA of Color Coated Coils/Sheets annually.

According to the company’s statement, the project’s estimated cost is ₹803.47 crore, to be financed through a combination of internal accruals and debt. BMW Industries already owns the designated industrial land where this greenfield project will be developed.

The company also highlighted that the first phase of operations is expected to begin in FY26, with full operational capacity being reached in stages over the next two years.

Strategic Advantages of the Expansion

BMW Industries emphasized multiple strategic benefits of this new project. The Bokaro plant’s location, approximately 300 km from Haldia/Kolkata port, is expected to facilitate export opportunities and expand the company’s global footprint. Moreover, its proximity to raw material sources will optimize supply chain efficiency.

Bokaro, being a prominent industrial hub, offers well-established infrastructure and ample resources, ensuring smooth project execution and operations. The company believes this expansion will solidify its position in the downstream steel processing sector while generating long-term value for stakeholders.

Stock Performance and Market Trends

Following the announcement, BMW Industries’ share price climbed 8.7% to an intra-day peak of ₹48. Despite this surge, the stock is still approximately 39% below its 52-week high of ₹79.05, recorded in August 2024. However, it has recovered 22% from its 52-week low of ₹39.36, which was reached on March 13.

Over the past year, the stock has declined by 21%. In March alone, it has lost over 5%, following a 12.5% dip in February. However, it showed a positive trend in January with a 4.5% gain, reflecting mixed performance in recent months.