Yasho Industries advanced 3.68% to Rs 1875 after the company's board approved capital expenditure of Rs 350 crore for phase-1 of its greenfield project at Pakhajan (Dahej), Gujarat.
The company intends to manufacture lubricant additives and rubber chemicals with a total capacity of 15500 MT per annum in phase-1 at this new facility.
Post expansion, the total manufacturing capacity will increase from 11,000 MTPA to 26,500 MTPA with a revenue potential of Rs 500 crore to 550 crore in phase-1 at full capacity utilisation.
The project is expected to be completed in 24 months after receiving all necessary governmental approval.
The capital expenditure towards the project will be financed through a combination of internal accruals and debt.
Commenting on the expansion, Parag Jhaveri, managing director & CEO, Yasho Industries, said: The demand for lubricant additives and rubber chemicals is increasing globally. We foresee a reasonable demand for our products in the market on account of our ability to manufacture quality products and our reliability.
The enhanced capacity will also allow us to approach large multinational consumers who we could not approach in the past due to limited capacity This investment will lay the foundation for the next phase of growth for the company."
Yasho Industries is a pioneer in the field of manufacturing fine and specialty chemicals, exporting all over the globe, including USA, Europe, Asia, Middle East and Brazil.
The company's net profit surged to Rs 14.56 crore in the quarter ended December 2021 as against Rs 6.36 crore during the previous quarter ended December 2020. Sales rose 77.23% YoY to Rs 163.81 crore in Q3 FY22.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU