SRF firms up on setting up new plant in Thailand

SRF rose 2.05% to Rs 1763 at 10:27 IST on BSE after the company announced setting up of a plant in Thailand with an investment of $60 million.

The announcement was made after market hours yesterday, 9 July 2018.

Meanwhile, the S&P BSE Sensex was up 217.87 points, or 0.61% to 36,152.59.

On the BSE, 29,000 shares were traded in the counter so far compared with average daily volumes of 20,000 shares in the past two weeks. The stock had hit a high of Rs 1,777.95 and a low of Rs 1,739 so far during the day. The stock hit a record high of Rs 2,443 on 30 April 2018. The stock hit a 52-week low of Rs 1,420 on 9 August 2017.

SRF, a chemical based multi-business entity engaged in manufacturing of industrial and specialty intermediates, announced setting up of a second Bi-axially Oriented Polyethylene Terephthalate (BOPET) film line and a Resin plant in Thailand at an investment of approximately $60 million. This new plant will be put up at the company's existing manufacturing location in Rayong, Thailand by a wholly owned subsidiary - SRF Industries (Thailand) and is expected to become operational in close to two years. Once operational, the new line will be capable of producing approximately 40,000 metric tonnes per annum.

With this capacity addition, the company will further strengthen its presence in the buoyant South East Asian region and expand its customer base in new geographies. By investing further in Thailand alongside the other manufacturing facilities, the company will not only gain significant synergies but also shorten the production lead-times, further improve efficiency and ensure continued high quality standards.

The project will be financed through debt raised in foreign currency and the company's retained earnings in Thailand. The major portion of this capex will be incurred in FY 2020. Based on the company's current projections, the firm's debt is expected to remain at present levels.

With this investment, SRF will be catapulted to amongst the top 10 polyester film producers across the globe. It further reinforces the company's commitment to the region, its local workforce and the efficient international supplier network that it has built in the past years.

On a consolidated basis, SRF's net profit fell 4.11% to Rs 123.91 crore on 21.74% increase in net sales to Rs 1589.98 crore in Q4 March 2018 over Q4 March 2017.

SRF is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company's diversified business portfolio covers technical textiles, fluorochemicals, specialty chemicals, packaging films and engineering plastics.

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