Mumbai-based diversified chemicals player, Aarti Industries Ltd will set up a fertiliser manufacturing facility at Jhagadia in Bharuch district. The company intends to invest around Rs 35 crore towards the new facility.
“This will be an expansion of our existing chemicals facility at Jhagadia. The new fertilisers facility will have the annual capacity of 200,000 tonnes per annum (TPA) of single super phosphate fertiliser,” said Rajendra Gogri, chairman and managing director. “The company will invest around Rs 35 crore for the project and it will be met through internal accruals and debt,” said Gogri. The new unit is expected to be commissioned by the end of the financial year 2013-14.
The company operates at a debt/equity ratio of 1:1, he informed. The company has chalked out ambitious plan for expansion and fresh investments during the year.
The BSE-listed company plans to invest around Rs 100 crore during 2013-14 towards capacity expansion in pharma, agrochemicals and performance chemicals. Part of which will be made in Gujarat, while other projects will come in Maharashtra. The company also aims to increase its revenues from the exports of pharma products and active phat ingredients (API).
Company’s revenues stood at Rs 1700 crore during 2011-12. “We are looking at 20 per cent growth in our revenues. Most growth will come from hydrogenated products and agro chemicals and export of pharma products,” said Gogri. Around 40-45 per cent of the company’s revenues come from export operations, mainly from the US, Europe and Asian markets.
Gogri claims that the company is the largest player in the performance chemicals, and agrochemicals in India with around 60-80 per cent market share.
The company manufactures specialty chemicals and dyes, pigments, agrochemicals, pharmaceuticals and rubber chemicals at its 16 manufacturing facilities located across Gujarat and Maharashtra. Four of these facilities produce APIs and intermediate for the pharma industry.
Last year in December, the company commissioned its additional hydrogenation unit to double its capacity of hydrogenated compounds from 1500 tonnes per month (tpm) to 3000 tpm.