ishfaque

The capitalizing of interest you're referring to only happens during construction projects, where the company has to pay interest on the construction loan prior to the project being completed. Those interest costs get rolled into the value of the asset. In this case, there is no "interest expense" that flows through the income statement, it all gets capitalized and goes directly onto the balance sheet as a long-term asset (hence being classified as CFI).

As anish was saying, for a general manufacturing company, interest expense would be a non-operating item.