Thirumalai Chemicals rose 3.52% to Rs 138.05 after the company announced plans to execute a project to manufacture 180,000 tons per year of phthalic anhydride (PA) and 30,000 tons per year of fine & specialty chemicals.
The project, to be executed at the company's existing site at Dahej, Gujarat, and Western India, would be implemented in two successive phases. The company expects to bring the first of these two phases on-stream in about 2 years after receipt of all needed approvals. It further informed that work has commenced on design & engineering of the plant.
The raw materials for this integrated plant will be sourced primarily within Gujarat; the finished products are aimed at the large West & North Indian markets, and at Exports.
Phthalic Anhydride (PA) has a wide variety of uses in colorants, polymer additives, reinforced polymers, fine chemicals, etc. India's consumption levels in PA and the above products are still very low compared to other countries, while demand growth has been strong. This project is expected to replace the large imports of PA and drive downstream growth in India.
The company has been a leading producer of phthalic anhydride and derivatives over 45 years; its range of products includes Maleic Anhydride (produced by its subsidiary), food ingredients and fine chemicals.
It presently has two manufacturing facilities - in South and West India; its subsidiary in Malaysia operates butane maleic anhydride & derivatives plants. All of these based on TCL's in-house process technologies and engineering capabilities.
The company sells its products primarily in India, South East Asia, Middle East and Europe, with some quantities in North America.
Thirumalai Chemicals further said that the commissioning of the company's first PA plant at Dahej, was delayed by the recent pandemic wave in Gujarat. Startup is now under progress, it added.
The company reported a consolidated net profit of Rs 84.67 crore in Q4 FY21, steeply higher than net profit of Rs 2.43 crore in Q4 FY20. Net sales remained flat at Rs 1085.74 crore during the quarter.
Thirumalai Chemicals manufactures and sells organic chemicals in India. It ranks among the largest producers in the world of phthalic anhydride, malic acid, maleic anhydride and fumaric acid.
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