Speciality-chemicals maker Chemplast aims at ₹1,000-crore turnover from custom-manufactured business - The Hindu

Speciality-chemicals maker Chemplast Sanmar Ltd. is aiming at a threefold increase in revenue from custom-manufactured business to ₹1,000 crore over the next three to four years, post the completion of two-phase expansion programme at Berigai, MD Ramkumar Shankar said. “Both our capex projects — the 41,000 ton per annum Paste PVC expansion at Cuddalore and the multipurpose blocks at Berigai for the custom manufactured chemicals business —are on track,” he said during analysts call.

According to him, the first phase of the custom-manufactured chemicals project is expected to be commissioned by the first half of FY24 and the next phase by March 2024.

“Post the commissioning of both the phases, at a steady state, we are targeting to reach a top line of around ₹1,000 crore from this business in the next three to four years,” he said.

The custom-manufactured business registered a 30% growth in FY23 revenue at ₹325 crore, added CFO N. Muralidharan.

In November 2022, the company entered into an LOI for supply of an advanced intermediate for new active ingredients, followed by another last week. The recent one is valid for five years from the current year, he added.

“We anticipate commercial supplies to start from Q4. This new product will be manufactured in the new multi-purpose production block. The combined revenue potential of these two LOIs over the period of the contract is around ₹800 crore through two products,” Mr. Shankar said.

“Based on these LOIs and the strong pipeline of products, we have a very high level of visibility with respect to steady-state capacity utilisation of the first phase of expansion that is to be commissioned by the end of the first half of this current year,” he said.

Regarding the Paste PVC expansion project, he said it was also on track to be commissioned by Q3.

During last May, the company completed debottlenecking of Suspension PVC as result of which sales volumes rose.

As far as Paste PVC is concerned, the company has an environmental permit to expand up to 70,000 tonnes. 

During the first phase, the company went for a 41,000 tonne expansion programme, which will be completed by November. And another 30,000 tonnes can be added. This is a product where Chemplast Sanmar are the leaders by far, he added. 

COMMents

Adblock test (Why?)

Read Again https://news.google.com/rss/articles/CBMidmh0dHBzOi8vd3d3LnRoZWhpbmR1LmNvbS9idXNpbmVzcy9zcGVjaWFsaXR5LWNoZW1pY2Fscy1tYWtlci1jaGVtcGxhc3QtYWltcy1hdC0xMDAwLWNyb3JlLXR1cm5vdmVyL2FydGljbGU2NjkwMTA0OS5lY2XSAXtodHRwczovL3d3dy50aGVoaW5kdS5jb20vYnVzaW5lc3Mvc3BlY2lhbGl0eS1jaGVtaWNhbHMtbWFrZXItY2hlbXBsYXN0LWFpbXMtYXQtMTAwMC1jcm9yZS10dXJub3Zlci9hcnRpY2xlNjY5MDEwNDkuZWNlL2FtcC8?oc=5

Bagikan Berita Ini