PI Industries has a plan of close to Rs. 800 - Rs. 900 crore Capex this year and the company is moving in this direction, says Rajnish Sarna, Joint Managing Director, PI Industries Limited during Q1 FY25 Earnings Conference Call on August 8, 2024.

Apart from fresh CAPEX and building new capacities, we are also, as we have alluded to in the past, optimizing plant capacities and improving throughput by adopting various technologies and that also gives us good room to maximize the capacity utilization because so many new products are now getting commercialized, Sarna added. 

Sarna further said: "While in the initial phases, there will be relatively lower volumes of the new products, but our capacity optimization helps us commercialize many number of new products in the existing plants without very heavily investing on the ground and that is a great achievement of the team over the last couple of years which is also helping us improve capital efficiency. For the current year we have Rs. 800 – Rs. 900 crore of Capex plan as of now, and we will keep reviewing it as we progress," Sarna revealed. 

Order book is mostly Agchem only. Non-Agchem products are at the initial stages and there are purchase orders for the year or two and those are not a significant part of the order book position. More than 40% of the new products that we are commercializing are all non-Agchem. Even at R&D scale, if we look at our R&D pipeline, more than 40-45% of products are non-Agchem," he added.