Opto Circuits is planning to invest about Rs 250 crore for making its manufacturing more efficient, according to Valiveti Bhaskar, Group Head fo Finance at the company.

The company is planning to invest in capital expenditure to build manufacturing base in Vizag and in Malaysia. The company is also planning to move its manufacturing facilities from the United States. The company had invested of $160 million to acquire two medical equipment companies in the US and it is now working to move their manufacturing bases to Malaysia and India.

“We have outlined a capital expenditure of Rs 250 crore for this to make our manufacturing more efficient. This is for the future and the market is reading this alarmingly,” said Bhaskar.

Even as the company officials said that the investment is for the future of the company, investors remained concerned over the impact on the level of debt. Experts believe that the company will face difficult financial position in the short term but it is capable of managing the position. The company has a debt burden of Rs 1,110 crore debt, under a leverage of 0.65 times.

The shares of the company fell to Rs 118.70 a share, which is its lowest level in 52 weeks in the domestic stock exchange.