By: Pravin Prashant
Last updated : February 09, 2022 8:46 am
The Sadilla expansion plan will create economies of scale and improve efficiency in manufacturing processes
India Pesticides Limited (IPL), one of the fastest growing globally operating chemical manufacturers in India, is planning to commission new plants in 2023 which will cater to international and domestic customers.
The company has acquired 25 acres of land in Hamirpur for a new manufacturing plant. The company completed land registration in October 2021 and land possession was completed in January 2022 and the plant is likely to commence operation by 2023.
All capex for the new plant of India Pesticides is likely to be funded internally.
The Sadilla expansion plan will create economies of scale and improve efficiency in manufacturing processes. The company is planning Rs. 70 crore capex outflow each year for the next two years. The company is targeting to increase Sandila capacity by 8,500 MT.
Sandila Plant technical capacity was 17,400 MT as on 31st march 2021 and capacity was increased by 1,500 MT in 9M FY22. The two manufacturing plants at the existing Sandila facility are proposed to be used for herbicide technicals.
Anand Swarup Agarwal, Chairman, India Pesticides Limited said, “During the quarter our profitability growth momentum continued backed by our efficient business operations and unique product offerings. During the quarter we launched one product which received an overwhelming response. As well as for the other product launched in the first half of the fiscal year continued to grow. Our R&D team and customer acquisition team is working to identify a future pipeline of product offerings which can further add significant value to our offerings. Presently we have five upcoming products in the pipeline and about to be launched by Q2 FY2022-23. During the quarter we further increased our Sandila plant capacity by 500 MT."
"Our progress of the ongoing expansion projects is as per timelines and our expectations. We are confident that our enhanced capacity coupled with new product launches will continue to drive profitable growth for us in the near to medium term,” added Agarwal.