Heranba planning additional Capex of Rs. 100 crore in H2 FY23

The Capex plan at Saykha unit will be around Rs. 150 crore plus impact, and which will come in FY '24 and FY '25

Heranba Industries Limited, one of the largest manufacturers of Synthetic Pyrethroids and its intermediates in India, is planning an additional Capex of Rs. 100 crore in H2 FY23.

Speaking at Heranba Industries Limited Q2 FY‘23 Earnings Conference Call, Raghuram K. Shetty, Managing Director, Heranba Industries said, "We have spent Rs. 41 crore on Capex at our Sarigam facility during H1 FY '23, and we will be spending additional Rs. 100 crore in H2 FY '23. The commercial production of technical-grade pesticides and intermediates from the Sarigam facility is likely to commence from Q1 FY '24, adding a meaningful contribution to the company's revenues. Heranba continues to look further to create sustainable growth for its stakeholders with its diverse product portfolio, R&D capabilities and prudent strategies. We are on track to achieve 15% to 17% sales growth in FY'23, with EBITDA margin staying at 16% to 18%."

"The company is well poised to build on the strong operational competencies developed over the last few years. I'm hopeful the company will continue to grow and surpass new milestones in the coming years. We continue to see FY'23 as an important year in Heranba's trajectory and are optimistic of the future," added Shetty.

Rajkumar Bafna, Chief Financial Officer, Heranba Industries Limited said, "The Capex plan at our Saykha unit will be around Rs. 150 crore plus impact, and which will come in FY '24 and FY '25."

Talking about Sakhya plant, Ronak R. Shetty, Executive Director, Heranba Industries Limited said, "Saykha will be a purely herbicide facility. So we've already completed one, we have already completed two products in our R&D phase of this herbicide, which we are planning in Saykha. And there will be one multipurpose facility, where we will be making the smaller herbicides for Indian as well as global consumption perspective."

Sarigam facility will be a mix of both insecticides as well as fungicides and we are launching three, four fungicides in the Phase II product, and Phase I will be a mix of pyrethroids and few other insecticides added Shetty.

Bafna said, "Sarigam facility first well will be started by the end of Q4 FY23 whereby 5,000 tons will be the added capacity. The next phase will be around another 5,000 tons, which will be commenced by Q3 FY '24.

About Saykha capacity, Ronak R. Shetty said, "We can make 20,000 tonnes also from this plant but the products that we are focusing on, we may be able to touch only 10,000 tons. That's our focus."