Bodal announces diversification & expansion plans
16 November 2020
Bodal Chemicals has announced diversification into Benzene downstream products having a capacity of 55,000 tpa at Saykha GIDC in Bharuch, Gujarat.
The company has also announced the expansion of Sulphuric Acid & Derivatives having a capacity of 3,40,000 tpa.
These products will further enhance the specialty chemical segment of the company. The company intends to further expand in the specialty chemicals segment in the future.
The company by setting up the integrated product chain at the plant will lead to cost efficiency, better productivity, and high margins.
It intends to start the project by the end of January 2021. The project is expected to get completed by the end of September 2022.
The total cost of the project, including one-time infrastructure costs, will be around Rs 345 crore. Out of that, the cost of Benzene downstream products will be around Rs 165 crore, and that for Sulphuric Acid & Derivatives will be around Rs 125 crore. The projects will be funded by term loans as well as internal accruals.
At optimum utilisation, the company expects these two projects to generate revenues of around Rs 400 crore. It has already purchased land costing around Rs 85 crore.