Elitecon International Limited hit the 20% upper circuit on Wednesday after announcing a long-term plan to expand into the FMCG business with a proposed investment of ₹700 crore.
The company has also set a target of generating around ₹20,000 crore in revenue by FY30 as it seeks to build a diversified consumer products business alongside its existing tobacco export operations.
Shares of the company were trading at ₹32.41, up 20% during the session. Elitecon International had a market capitalisation of ₹5,180.74 crore.
The stock has gained around 5% over the last five trading sessions, though it remains down 11.91% over the past month. It has touched a 52-week high of ₹46.40 and a 52-week low of ₹26.04.
Dual growth strategy
Elitecon said its expansion plans will rest on two businesses:
- International tobacco exports.
- A phased rollout of FMCG products.
The FMCG business will cover:
- Packaged foods and snacks.
- Edible oils.
- Daily household essentials.
The company said the expansion will initially be supported by its manufacturing facility in Nashik, Maharashtra, which spans more than 40,000 square feet.
Further capability enhancements are also planned.
Tobacco order book crosses $119 million
Elitecon said it currently has contracted international tobacco orders worth more than $119 million across Africa and the Middle East.
These include:
- A two-year export agreement with South Africa-based Bozza Tobacco valued at around ₹202 crore.
- An ongoing order worth $97.35 million for the Middle East through Yuvi International Trade FZE.
FMCG roadmap
The company has outlined several targets for the new business.
Over time, it plans to:
- Build a distribution network of around 5,000 partners.
- Reach more than 5 lakh retail outlets.
- Develop 10 consumer brands.
- Launch over 150 stock-keeping units (SKUs).
- Expand operations to more than 15 international markets.
Management said products will be launched in phases and only after manufacturing, sourcing, packaging, inventory, pricing and distribution systems are ready.
The company added that future developments related to the expansion will be disclosed in line with SEBI regulations.
Upgrades planned at Nashik facility
Elitecon is also carrying out capability enhancement measures at its Nashik unit.
These include:
- Automation upgrades on selected production lines.
- Expansion of the in-house quality assurance laboratory.
- Capacity additions based on confirmed orders.
Management comment
Executive Director Kumar Anubhav Upadhyay said the company’s international order book of more than $119 million, manufacturing infrastructure and FMCG ambitions provide a long-term growth platform.
He said the focus would remain on disciplined execution and a milestone-based expansion approach.
Business profile
Founded in 1987, Elitecon International Limited operates in the tobacco and allied products business.
The company has operations in the UAE, the UK and Singapore, and has a presence in more than 50 countries.
It has built capabilities in manufacturing, exports and international supply chain management, and is now pursuing a phased expansion into the FMCG sector.
TL;DR:
Elitecon International hit the 20% upper circuit after announcing a ₹700 crore FMCG expansion plan. The company aims to achieve around ₹20,000 crore in revenue by FY30 and currently has an international tobacco order book exceeding $119 million.
AI summary:
- Elitecon shares rose 20% after unveiling a ₹700 crore FMCG roadmap.
- The company targets around ₹20,000 crore in revenue by FY30.
- International tobacco orders exceed $119 million.
- Elitecon plans to launch 10 brands and over 150 SKUs.
- The company aims to reach more than 5 lakh retail outlets.
