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| Jayashree Chemicals to adopt new tech |
| BS Reporter / Kolkata/ Berhampur Feb 20, 2010, 00:26 IST |
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Jayshree Chemicals Limited (JCL), a SK Bangur Group firm engaged in the production of caustic soda, would switch over to the state-of-the-art membrane cell technology at its plant at Ganjam in south Orissa from October this year.
“We have already placed orders for the new machines for implementing the new technology at our Ganjam plant. We are hopeful that the caustic soda production making use of the latest technology will commence from October 2010”, said D K Maheshwari, executive director, Jayshree Chemicals Limited.
The implementation of the new technology will go hand in hand with the company's capacity expansion plan which will entail an investment of Rs 150 crore. The company's capacity at the Ganjam plant will be scaled up from 70 tonnes per day at present to 152 tonnes per day.
Maheshwari was here on Wednesday to review the progress of the company's civil work at its Ganjam plant, about 35 km from here.
The company has decided to meet its expansion plan through term loan, floating of rights issue and also from internal accruals.
The term loan of Rs 90 crore has already been finalized with the State Bank of India (SBI), State Bank of Bikaner and Jaipur and Indian Overseas Bank (SBI).
Jayshree Chemicals is likely to come out with its rights issue on February 26. The rights issue would be made available to the existing shareholders.
“The company would issue 2, 39, 94,374 equity shares at a face value of Rs 10 each and a premium of Rs 5.The issue is likely to be closed on March 18”, he said.
Presently the JCL is producing caustic soda using mercury technology, which is highly polluting.
The new technology is not only environment friendly, but it will also save energy, Maheshwari said.
It may be noted that the Centre has directed the caustic soda producing industries across the country to implement this new technology by 2012.
About 80 percent of the caustic soda producing units in the country has already adopted the new technology ahead of this stipulated deadline of the Government of India. While there are 40 caustic soda producing units in the country, JCL is the only such industry in Orissa.
To meet its capacity expansion plan, JCL has decided to procure salt, the main raw material of the caustic soda plant, from Gujarat. The company has its own captive salt farm in Andhra Pradesh.
JCL will not face any problem of marketing its products after enhancing capacity because it is the only factory in the state producing caustic soda, Maheswari said.
The major buyers of JCL products at present are aluminum industries like National Aluminum Company (Nalco), Balco, Hindalco, Vedanta Alumina and paper producing industries like JK Paper.
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