AksharChem Plans For Capital Expenditure Upto Rs. 175 Crores
AksharChem (India) Ltd. is one of the market leaders in the manufacture of Vinyl Sulphone & CPC Green Pigment.
The Board of Directors at its meeting held on 23rd January, 2017 had approved a Capital Expenditure Plan upto Rs. 175 Crores in Specialty Chemicals, Dyes & Intermediates and Organic Pigments. This is in line with the Company’s strategy of Long Term Sustainable growth of existing business as well as venturing into new Value Added Businesses.
The details of the Capital Expenditure Plan are as below:
Dye Intermediates (H-Acid) : CAPEX of ~ Rs. 25 Crores
Company add one more Dye intermediate name H-acid to cater existing the customers with capacity of 1200 TPA to start with in brown field Dye intermediate campus.
Specialty Chemicals (Value Added Precipitated Silica) : CAPEX of ~ Rs. 65 Crores
Company’s portfolio diversified into the environment sustainable inorganic product name “value added specialty precipitated silica “which has enhance value to end user like Tyre , Rubber, Food. As a start up capacity of 10,000 TPA to be considered in green field for Phase-I
Organic Pigments : CAPEX of ~ Rs. 85 Crores
For CPC Green, addition to the existing capacity will be in two phases to become dominant leading player.
Phase I ( Brown field) - Expansion of 480 TPA
Phase II ( Green Field) - Expansion of 1,800 TPA
Company also have decided for the backward integration & produced the Major Raw material CPC Blue crude which is used in the manufacturing of the CPC Green, to control the quality of input raw material. After the commissioning of CPC Blue Crude Plant our requirement of CPC Blue Crude for the manufacturing of CPC Green will largely met in house.
To execute the Capex plan, Company estimate time period of twelve to Eighteen month from the Disclosure note.
The Construction of Violet 23 Plant of 100 TPA is in progress and scheduled to be commissioned in next quarter.