Bodal Chemicals to commission Vadodara plant this month

Bodal Chemicals Ltd, manufacturer and marketer of dye and dye intermediates, will begin the commercial production at its Vadodara plant on July 25. The new manufacturing plant for sulphuric acid plant, which will have a production capacity of 650 tonnes per day, has been set up at an investment of Rs 62 crore.

Suresh Patel, chairman and managing director of Bodal Chemicals said, "With this new plant in place we now have eight facilities located across Gujarat. The new facility has been successfully tested and we are looking forward to its commencement. The plant would prove as a cost beneficial to Bodal Chemicals as this facility will generate power and steam which will be used to run this plant and our dye plant. This will also reduce the overall fuel consumption and thus transportation and production cost to a great extent. The plant is an example of our commitment to building value for customers and driving operational efficiencies. By setting up this plant we are integrating across the value chain to have better control over margins."

According to a press release issued by the company, sulphuric acid contributes 8 per cent to costs of production and is a low value and high volume item (consumption of about 5000 to 7000 MT per month. The facility will have a capacity to produce 1.45 lakh tone of sulphuric acid per annum, of which 70 per cent will be for captive consumption and 30 per cent will be for sale to various other companies in the same sector. After setting up this commercial plant, the company will now not be dependent on external suppliers for sulphuric acid. This backward integration will prove highly beneficial, since sulphuric acid is one of the key raw materials for all dye Intermediates, the release further stated.

Bodal Chemicals Ltd manufactures a range of dye intermediates and variants in dyestuff that are principally used as raw materials in textile, leather, plastic, paper and other dye consuming industries.