The segment revenue for the company with respect to Dye Intermediate is expected to reach Rs. 500 crore by FY23.
Shree Pushkar Chemicals and Fertilisers Limited is planning to expand its Dye Intermediate (DI) and fertilizer capacities.
The company had planned a capex of Rs. 28 crore to acquire Madhya Bharat Phosphates in FY20 which is already operational by early FY21. The plant has a capacity of 4 lakh MTA and the segment revenue is expected to reach Rs. 200 crore by FY21.
The company has evolved from a commodity space to a branded reactive dye company (own brand DYECOL) by planning Capex of Rs. 75 crore with capacities of around 22,000 TPA by mid of FY22. The segment revenue for the company with respect to Dye Intermediate is expected to reach Rs. 500 crore by FY23.
During the past several years, numerous Chinese dyes and intermediates production plants have shut down due to implementation of stringent environmental laws. With increased environmental norms, the cost advantage enjoyed by China has declined and India is emerging as the next alternative supplier for the global market.
The unorganized sector in the DI and dyestuff industry has been declining over the years due to increasing environmental and effluent management norms, along with external dependency on raw material sourcing. This will benefit companies like Shree Pushkar Chemicals and Fertilizers that are compliant with local environment laws and have backward integration in place to be self sustainable for raw material needs.
The Indian Dye Intermediate market is expected to grow to $6.3 billion by 2022, showing a CAGR of more than 7% from 2017-2022.
The company has reported a decline in its first quarter sales and profits due to Covid-19 pandemic. The company's sales dropped by 29.7% YoY and stood at Rs.65.40 crores as compared to Rs.93.15 crores during the period ended June 30, 2019.
Net profit dropped by 84% YoY and reached Rs.1.01 crores in Q1FY21 versus Rs.6.35 crores in the corresponding period last year.
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