Fairfax-backed Sanmar group has lined up around $220 million for projects in Tamil Nadu.
Fairfax’s investment in Sanmar’s chemicals business, which accounts for around 70 per cent of the latter’s operations, is housed within three firms —Chemplast Sanmar (Chemplast), Sanmar Speciality Chemicals, and one in Egypt, TCI Sanmar.
Chemplast is Sanmar’s flagship company and one of the major players in the chemicals business for over 50 years. Sunmar’s capex plan includes increasing suspension PVC capacity in Cuddalore to 600 kilo tonnes per annum by 2023 and to 900 ktpa by 2025 at an investment of $186 million from 300 ktpa now.
The estimated incremental annual earnings before interest, tax, depreciation and amortisation (EBITDA) after the expansion would be $162 million.