Specialty chemicals maker Chemplast Sanmar Ltd. is planning to invest ₹1,000 crore for expanding capacities of Speciality Paste PVC unit at Cuddalore and Custom Manufactured Chemicals Division’s (CMCD) unit at Berigai, managing director Ramkumar Shankar said.
“As we forge ahead, propelled by the robust growth momentum, we are investing over ₹.1,000 crore towards expanding our capacities in the Speciality Paste PVC and CMCD,” he said in the latest annual report.
According to him, these expansion projects are currently in progress. The 41 ktpa Speciality Paste PVC project is on track and will be commissioned during the second half of FY24 while Phase 1 of the CMCD will go on stream by the first half of FY24 and next phase by the end of FY24.
On the medium to long-term outlook, he said the demand for all the products looked very strong and the energy costs had started dropping.
While there are immediate challenges, the company is optimistic about the overall business scenario and the capital investments will boost the margins and competitive position even further, he said.
Asserting that they would continue to significantly expand in the CMCD business, he said: “We plan to further expand into fine chemicals and pharmaceuticals sectors, broaden our portfolio and access new markets and customers. We will also invest opportunistically to retain our leadership position in the Chlorovinyl space.”
Talking about the proposed expansion, CFO N. Muralidharan said: “These strategic investments serve as testimonials to our commitment to stay focussed on innovation, enabling us to seize opportunities that come our way.”
He also said the Suspension PVC chain is another potential area for growth. However, the capital allocation will depend on securing stable feedstock supplies.
“Moving forward, we will continually strive for improvement, innovation, technology investment, collaboration and embrace emerging trends to maintain our competitive edge, said chairman Vijay Sankar.