By: ICN Bureau
Last updated : June 04, 2022 10:24 am
The company would be planning a capex of Rs. 100 - 125 crore crore per year, starting from next year onwards
India Pesticides Limited (IPL), one of the fastest growing globally operating chemical manufacturers in India, is planning a capex investment of Rs. 500 crore at Hamirpur plant.
Speaking about Hamirpur capex, D. K. Jain, Chief Executive Officer, India Pesticides Limited said, "We have planned Rs. 500 crore Capex at Hamirpur over a period of around four years, because we will be building in blocks so all capex will not be done at a time. We would be doing a Capex of Rs. 100 - 125 crore crore per year, starting from next year onwards."
Speaking during the Q4 FY2022 Earnings Conference Call, D. K. Jain said, "We have already applied for environmental clearance for our Hamirpur facility and we are happy to say that the TOR has already received for our facility at Hamirpur. We remain committed to deliver continuous sustainable long-term growth with R&D at the core, leading to continuous innovations in products, as well as in processes."
"First step is that we have to get the environmental clearance and for that, we have already applied for the clearance. And once we apply, then there is a first stage of getting TOR. That TOR we have already received. And now, our consultant is taking up forward steps for having the environmental impact assessment report prepared. Once this report is prepared and submitted to the authorities, they take about two or three months to convene a meeting and then accord approval if everything is okay. So, we expect the EC clearance by about September - October and then we can start the construction at the site. So, we expect the first product to come out maybe in the quarter three of financial year FY 2023-24. And thereon, it will be continuous."
The company is planning a total capex of Rs. 90 - 100 crore for FY23, says S. P. Gupta, Chief Financial Officer, India Pesticides Limited during Q4 FY2022 Earnings Conference call.
"We will be spending around Rs. 20 - 30 crore for our new site besides Rs. 70 crore for the Sandila unit. So, Rs. 90 -100 crore and we are planning to plug in both the units," said S. P. Gupta.
"During FY2022, we have invested Rs. 70 crore in Capex for expansion of Sandila plant and soft launched 2,000 metric ton capacity during FY2022, increasing overall technical capacity to 21,500 metric tons. Further, we expect to invest Rs. 70 crore in Capex during FY2023. We remain confident of continuing our growth trajectory, while extending full support to our customer, supplier, and other valued shareholders," added Gupta.