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Godrej to invest Rs 500 cr for greenfield unit in Dahej

Rutam Vora  |  Mumbai/ Ahmedabad 

Godrej & Boyce Manufacturing Company Limited, a Godrej Group arm, is setting up a greenfield plant for chemical process equipment manufacturing at Dahej Special Economic Zone (SEZ) in Gujarat with an investment of around Rs 500 crore for the first phase of development.

The company has acquired 50 acres of land within the SEZ area and has applied for additional 50 acres. The company has already received various clearances from the central and state authorities, while it is awaiting an approval for construction of a jetty at the plant site. The construction work for the plant is likely to start within a period of the next three months. "We are setting up a chemical process equipment making facility at Dahej with an investment of about Rs 500 crore. This will be a greenfield project by a subsidiary of Godrej Group," informed Adi Godrej, chairman of Godrej Group on the sidelines of a CII event in Ahmedabad on Thursday.

The project will be developed in a phased manner and will be the second chemical process equipment manufacturing facility for the company after its existing unit in Mumbai. "Dahej facility will be about 10 times bigger in area than our existing unit at Mumbai. Once commissioned, Dahej unit will mainly cater to export business, while Mumbai will cater to domestic market. Currently, we export about 70 per cent of our production from Mumbai unit," said a company source close to the development. In the first phase, the plant will have the capacity of about 16,000 tonnes per annum of process material. "Initially we are targeting revenues of Rs 70-75 crore from this unit. And it is expected to touch Rs 600 crore over the next 5-6 years," the source informed. The company makes entire range of process equipment for refineries, petrochemicals, fertilizers, oil & gas, chemicals, pharma and power.

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First Published: Fri, June 01 2012. 00:35 IST