Chemplast Sanmar Ltd. has lined up a capex of ₹680 crore for the next phase expansion of its custom manufacturing facility near Hosur.
“We recently received confirmation from one of our customers that we have been selected to supply an advanced intermediate for an already established generic active ingredient,” said MD Ramkumar Shankar.
“Therefore, we plan to kick-start the next phase of expansion of the multi-purpose facility immediately, and have earmarked a capital outlay of ₹680 crore to be spent over the next 15 months towards capacity expansion,” he said in a statement.
Chemplast Sanmar has a 1,068 tonnes per annum installed capacity at Berigai near Hosur. The phase-1 is slated to be completed by Q2 of FY24.
The company, meanwhile, reported a 60% decline in standalone net profit for the quarter ended December to ₹57 crore due to fall in prices of finished goods coupled with increase in energy costs.
During the period, revenue from operations rose to ₹630 crore from ₹517 crore. Power and fuel cost increased by ₹37 crore mainly due to increase in coal, natural gas and superior kerosene prices.
“We expect a better performance in FY24 driven by a combination of a rebound in PVC demand and prices along with new capacities (Paste PVC and Custom Manufacturing) coming on-stream during the year,” Mr. Shankar said.
