Jubilant Life Sciences (JLS) today said it is setting up a manufacturing plant to produce Symtet, a key ingredient for making insecticide 'Chlorpyrifos', at Bharuch in Gujarat, as part of its nearly Rs 350 crore capacity expansion plans for the next fiscal.
JLS will set up a manufacturing plant in the Special Economic Zone, at Bharuch, for the chemical commercially known as Symtet/TCP, which will have a capacity of 24,000 tonne per annum (TPA), it said in a statement.
The new plant will also manufacture chlorinated pyridine derivatives with an annual production of 5,000 tonne, it added.
"The company has earmarked Rs 350 crore for capacity expansion in 2011-12. The new project in Gujarat would be a part of this capacity expansion," JLS Executive Director Finance R Sankaraiah told PTI.
The company, however, did not disclose the investment details of the project.
The facility, which is expected to be operational from the fourth quarter of FY 2012, will make Jubilant the largest producer of Symtet globally catering to more than 40% of the worldwide demand, the company said.
JLS has received approvals from major customers and is in the process of firming up long-term arrangements with them. It expects to achieve additional annual revenue of $90 million from this facility, it added.
"Jubilant will be the only company in the world manufacturing Symtet through this environment friendly technology, developed by inhouse R&D having complete backward integration up to the basic feed stock," JLS CMD Shyam S Bhartia and Co-Chairman and MD Hari S Bhartia said.
Shares of Jubilant Life Sciences today closed at Rs 165.70 on the Bombay Stock Exchange, up 1.41% from its previous close.