Bodal Chemicals Limited, India's largest integrated manufacturer of dyestuff and dye intermediates, is planning a twofold approach - Modernisation at Rajpura plant and capacity addition at Saykha plant to increase its market share. 

Speaking at the Q4 FY22 Conference Call, Ankit Patel, Executive Director, Bodal Chemicals Ltd. said, "In Chlor Alkali, we have acquired capacity at Punjab because it was an old plant, we were operating with the older technology where the consumption of the power is more which results in higher cost so we have immediately placed the orders and in fact received the main technology machinery in the last few days only. By Diwali, we are planning to upgrade the technology, which will bring down our cost annually around Rs. 25 - 30 crore. Also, at the same time, we are increasing the capacity. So, our capacity will also go up by 100,000 tons per year, in FY22 we did about 55,000 MTPA. Also the consumption areas of caustic are doing very well right now." 

Saykha plant in South Gujarat will be operational in Q1 FY2024, says Mayur Padhya, Chief Financial Officer, Bodal Chemicals Limited at the Q4 FY22 Conference Call.

"There are two areas where we are growing. That is one at Punjab site and another is at Saykha south Gujarat site. As far as the Punjab site, we have already acquired the running unit of Mawana Sugars for Chlor Alkali. So, it is a running unit, it is contributing to our revenue as well as bottom line. And over there, we are doing modernization. So, upgraded technology we are installing so that we will have a production of about 1 lakh MTPA.. That will have a Capex of about Rs. 270 crore as far as Punjab is concerned," said Padhya.

"Another, Saykha site, we are going to have two plants; one is Sulphuric Acid plant, that will be capacity addition for the company. We already have 500 MT per day plant for Sulphuric acid at our Padra site, and another about 1,000 plus metric ton per day plant we will have at our Saykha site. That will also have Sulphuric acid as well as its derivatives like Chloro Sulphonic is 23% and Oleum is 65%," commented Padhya.

"At the same site, we will also have Benzene downstream products. Benzene will be our raw material and from benzene, we will produce MCB. So, MCB will be fully captively consumed. From MCB, we will produce PNCB, ONCB, MNCB, and DNCB products. So, out of that, PNCB will have a further consumption as well as sales in the market. And from that we will produce PNA as well as 2,4 DNCB. At the same time from 2,4 DNCB, we will produce MPDSA. So, there will be three, four stages of integration and a basket of six to eight products that we will start manufacturing and that is a new line for us in a way. Though, out of this product to PNA and MPDSA, we are producing at our Padra site but in a lower quantum. So, the Sulphuric acid and benzene, both put together will add about Rs. 550 crore of revenue for the company and this will be operational in Q1 FY24," added Padhya.