Shares of SRF Ltd were trading in the red and 1% lower on 2 January despite the company announcing the commissioning of an aluminium foil manufacturing facility, SRF Altech Limited, for a total consideration of Rs 536 crore.

In its regulatory filing, the company announced that they have established a new wholly-owned subsidiary, SRF Altech, to construct a manufacturing facility to produce aluminium foil. The company has successfully commissioned this facility, which has been capitalised at a cost of Rs 536 crore.

This venture represents the company’s strategic expansion into the aluminium foil manufacturing business. This subsidiary setup and operational status align perfectly with the company’s broader initiatives for diversification and growth.

The foray into the aluminium foil manufacturing market demonstrates a significant commitment to this venture and its potential in the foil manufacturing market. This will not only strengthen the company’s position in the industry but also reflect its approach of venturing into new business avenues and staying ahead of the competitive market.

However, the shares of the company have underperformed and have given a return of 8% in a period of six months against the benchmark Nifty50, which has given a return of 12% over the same period.

At 12:47 pm, the shares of SRF were trading 0.99% lower at Rs 2,443.20 on NSE.