By: ICN Bureau
Last updated : February 09, 2022 8:15 am
Projects are being set-up at the existing sites and the target commercialization is over the next 2 years
Sumitomo Chemical India Limited (SCIL), a leading Japanese research driven diversified chemical company with consolidated sales revenue of more than US $20 billion, is planning an additional Capex of Rs. 100-110 crore over 1-2 years for five products.
The company is planning to manufacture additional proprietary technical grade active ingredients products for its parent company SCC Japan and its global affiliates. Five products have been approved in-principle for supply to SCC and several others are in the pipeline.
Projects are being set-up at the existing sites and the target commercialization is over the next 2 years. The revenue potential of these 5 products on the above capex is Rs. 200 - 250 crore per annum. The estimated margins are in line with current margins earned by SCIL for similar projects.
These products are have growing global demand and the potential to add further capacities and additional products in medium to long term.
The company has signed and registered agreements to buy two additional land parcels - Around 20 acre privately owned land parcel adjoining our existing Bhavnagar site and around 50 acre privately owned land parcel at a prime location at Dahej within PCPIR Zone and the transfer process is expected to be completed soon.
The Capex plan is progressing as per schedule and the commercial production is expected to start during FY 22-23.