Having announced 51:49 joint venture with China's Shanghai Baijin Chemical Group (SBC) for a CS2 plant at Dahej, Indofil Industries is now planning to set up agrochemicals synthesis and specialty chemicals manufacturing facilities in Gujarat.
For this, the company has acquired two sites in the state and plans to invest about Rs 150 crore for the manufacturing plant.
"Setting up of the CS2 manufacturing unit is a key strategic move to ensure its consistent supply since CS2 is a key raw material for our products such as Mancozeb. Through this backward integration, we would strengthen our supply chain thereby strengthening our production capacity for years to come. With this Indofil will complete an investment of approximately Rs 350 crore in Gujarat by mid 2013. Indofil has also acquired two more sites where it plans to set up manufacturing facilities for agrochemicals synthesis and specialty chemicals," said RK Malhotra, chief executive and president of Indofil Industries Ltd.
In all, according to Malhotra, Indofil's total investment in Gujarat will reach over Rs 500 crore in the next 3-4 years.
"This will generate large employment directly and indirectly as many vendors have also set up their units around Dahej," Malhotra added.
Meanwhile, the JV Indo Baijin Chemicals Pvt. Ltd. are setting up the approximate $40 million plant for CS2 production using eco-friendly technology.
"At present, 80 per cent of India's CS2 is imported from various parts of the world. Hence, the unit at Dahej would substitute for some of these imports. By adopting eco-friendly technology in production, Indofil will set an example in the chemical industry for sustainable development," said KK Modi, CMD, Indofil Industries Ltd.