Shree Pushkar Chemicals & Fertilisers Limited (SPCFL), one of the leading manufacturers of dyes, dye intermediates, and fertilisers is expanding its capacities at a steady pace and is planning FY22 Capex at Rs. 160 - 165 crore.   

The Mumbai based company with a product portfolio of more than 25 products has invested a Capex of more than Rs. 141 crore up to December 31, 2021.

The company has spent almost all the planned capex for its Unit 5 - Dye Intermediaries & Animal Health & Nutrition. Out of total planned capex of Rs. 108 crore, it has already incurred close to Rs. 100 crore. The dry trial run has already commenced for the unit and the commercial production is expected to begin somewhere in Q4 FY22.

SPCFL has also successfully finished installation of its two solar plants for electricity generation for internal consumption, under the open access scheme, which will decrease our power cost and increase the margin profile. Out of Rs. 21 crore Capex earmarked for two solar plants, the company has already incurred approximately Rs. 13.30 crore till 31st of December 2021.

The company spent Rs. 28 crore on the acquisition of Madhya Bharat Private Limited (2 Units) and Rs. 5 crore on revamp of Unit 1 that focuses on Acids, Dye Intermediates & Animal Health & Nutrition.

“There are few other Capex plans also going on in the hindsight which we will speak at the appropriate time and we will keep all of you posted on the same,” informed Punit Makharia, Chairman and Managing Director, SPCFL while sharing the details at the company’s Q3 FY22 earnings conference call.

“As the situation is arriving to normalcy and economic activities are picking up, we are also witnessing business uptick across our business segments. We have been able to increase our sales volume significantly in our fertilizer segment through our two acquisitions, for Madhya Bharat Phosphates Private Limited and Kisan Phosphates Private Limited. An increase of 22% in volumes of Kisan Phosphates has resulted in its revenue growth of 132% for Q3 FY22, which includes our revenue from fertilisers and animal health and nutrition, this is with respect to the similar quarter in the previous year,” elaborated Makharia.

SPCFL is ramping up capacities of fertilisers at two different places. Kisan Phosphates, right now has the installation capacity of 100,000 tons which will be ramped up to 132,000 tons. Another facility of Madhya Bharat that is at Dewanganj is of 132,000 tons of capacity. Therefore, all put together, there will be an incremental size of SSP of this fertilizer of around 164,000 tons.

The company plans to start Dewanganj as early as possible as it has obtained all the necessary approvals and the plant has been fully updated. Currently it is facing some local issues which it is in the process of resolving. It expects to begin the operations by April or May, 2022.

"As far as ramping up the capacity and as revenue is concerned, Unit 5 will easily generate a revenue of Rs. 250 crore. Since we are already on to the phase of the dry trial runs, we believe that in March, 2022 we will start the commercial production. In the coming year, Rs. 550 plus the business will definitely go where the unit 5 has not come and if you will see FY 22-23 so in that unit 5 addition plus Dewanganj site addition will be there. Plus Kisan Phosphates 32,000 ton SSP, the new production which we are doing and one or two small cattle feed animal health nutrition business we have done. All these capex have been completed and there is nothing remaining in this," added Makharia.