Growth capital expenditure

Capital spending that adds capacity or enters new markets, as opposed to replacing what wears out.

A company spending ₹460 crore of which ₹300 crore is maintenance is committing ₹160 crore to growth.

The distinction changes how a business is valued. Growth spending is discretionary and should be judged by the return it earns; maintenance spending is not optional and is properly treated as a cost.

A company that suspends growth spending has more cash and less future, which is a trade a valuation should show rather than hide.