India Pesticides to invest Rs. 140 crore on expansion
Chemical

India Pesticides to invest Rs. 140 crore on expansion

Rs. 70 crore is being spent in the current year and Rs. 70 crore is being spent in next year at our existing site

  • By ICN Bureau | February 17, 2022

Agrochemical company India Pesticides Limited is planning to invest Rs. 140 crore till end FY2022-23.

S. P. Gupta, Chief Financial Officer, India Pesticides Limited, said, "Actually, we have a Capex of Rs. 140 crore, Rs. 70 crore is being spent in the current year and Rs. 70 crore is being spent in next year at our existing site. We are projecting asset turns of more than two times against this Capex, so we are quite confident to achieve growth of around 20% in the next two years."

"As far as our new capacity which is coming at our new plant that will boost our revenue significantly. We have projected a Capex of Rs. 300 to 400 crore in the next three to four years. As far as, EBITDA margins, margin profile is concerned, we are making niche products, so we are very much confident that our EBITDA margin will be in the range of 29% to 33% in future also," added Gupta.

Anand Swarup Agarwal, Chairman, India Pesticides Limited said, "Our progress of the ongoing expansion projects is as per timelines and as per our expectations. We are confident that our enhanced capacity coupled with our new product launches will continue to drive profitable growth for us in the near to medium term. Going forward with a portfolio of distinct products we are confident of enhancing shareholders value and to achieve our long-term goals."

D. K. Jain, Chief Executive Officer, India Pesticides Limited said, "Capacity expansion at Sandila and Hamirpur are very much in line with our expectations. We have also taken possession of Hamirpur land for our unit three and are in the process of making an application for environmental clearance."

"During nine months, we invested Rs. 55 crore in capex for expansion at Sandila plant and soft launch of 1,500 metric tonne capacity during this nine month of FY2022, increasing our overall technical capacity to 21,000 metric tonnes, we are targeting overall 9,000 metric tonne capacity expansion at Sandila facility," commented Jain.

"Further, we expect to invest Rs. 15 crore in capex in this quarter Q4 FY2022 at Sandila and as informed earlier Rs. 70 crore capex is planned for FY2023 at Sandila unit. We remain committed to deliver continuous, sustainable, long-term growth with R&D efforts at the core leading to continuous innovations in products as well as in process optimization," added Jain.

Register Now to Attend NextGen Chemicals & Petrochemicals Summit 2024, 11-12 July 2024, Mumbai

Other Related stories

Startups

Petrochemical

Energy

Digitization