Vinati Organics commences production of its IB Plant at Lote

• The new manufacturing unit of Isobutylene (IB) has installed capacity of 12000 MT
• VOL will now be the largest company in India in terms of manufacturing capacity for IB

Vinati Organics Limited (VOL) (BSE: 524200), the world’s largest manufacturer and supplier of IBB (Isobutyl Benzene) has commenced operations of its new manufacturing unit of Isobutylene (IB) at its new plant situated at Lote. This plant has an installed capacity of 12000 MT, making VOL the largest company in India in terms of manufacturing capacity for IB.

The commencement of this unit will make the company self reliant in terms of one of their key material for its specialty monomer 2-Acrylamido 2 Methyl Sulfonic Acid (ATBS).

ATBS has been the driving factor in VOL’s growth in the last 5 years. World demand for ATBS has been growing at the rate of 10-15%, whereas VOL has been growing at around 30%. Presently, VOL has an installed capacity of 10000 MT of ATBS and during FY11 it is going to expand the same to 15000 MT. Other than the captive use of IB for the manufacture of ATBS, VOL plans to sell IB in the domestic market.

Commenting on the occasion, Ms Vinati Saraf Mutreja, Executive Director - Vinati Organics said “We are already the 2nd largest manufacturer of ATBS in the world and we foresee strong growth of ATBS in the coming years. The backward integration will help VOL in not just being more cost effective but shall also play a significant role in VOL's quest for leadership position in ATBS."

About Vinati Organics Limited
Incorporated in the year 1989, VOL is into the manufacturing of specialty organic chemicals. It’s the world's largest manufacturer of Isobutyl Benzene (IBB) and the 2nd largest manufacturer of ATBS. Its manufacturing facilities are situated in Mahad and Lote, Maharashtra. Its products include (IBB) which is used a basic raw material for manufacturing Ibuprofen, an anti-inflammatory analgesic bulk drug. IBB is also used in perfumery industries. ATBS is used in oil–field recovery, water treatment, acrylic fiber manufacturing, adhesives, and personal care products, as well as in mining industry, coatings, and as dispersing and flocculating agents. It exports more than 75% of its production across USA, Europe, Asia, Middle East and China and has been the preferred source for some of the largest chemical manufacturing companies in the world.

VOL is listed on the Bombay Stock Exchange and National Stock Exchange. It had a Net Sales of Rs. 23176 Lacs for FY10. The company has planned capacity expansion of the present facilities and introduction of new products to continue with its growth plans.