DCW Limited, a leading chemical company in India, plans to double its CPVC (Chlorinated Polyvinyl Chloride) capacity by adding another 10,000 MT capacity.
The company also plan to augment the capacity utilisation of its SIOP ( Synthetic Iron Oxide Pigment) plant to 100% with some line balancing Capex to generate an additional 10KT of production per annum.
As per company estimates, the CPVC project is expected to be commissioned in 2nd half of FY24 & SIOP de-bottlenecking to be completed by Q1 of FY24.
However, the company is making concerted efforts to try and fast track the projects. DCW is investing around Rs 1.25 billion on both of these two projects and anticipates a substantially boost to the profitability, given the high margin profile of these products.
Referring to the impact of these steps, Mr Vivek Jain, Managing Director, DCW Ltd, commented, “This CAPEX aligns with our overall strategy of making further inroads into and expanding our speciality chemicals business. We believe that these CAPEXs- in expanding our CPVC capacity and taking our existing SIOP capacity to near 100%, will further strengthen our position in marketplace considering the demand curve for both these products. The proposed Capex initiatives also furthers our Hon’ble Prime Minister’s “Make in India” initiative.
We are committed to grow our speciality portfolio going forward as well and our strategy and R&D teams are already focused on the next growth drivers and in identifying products relating to chlorine & other related chemistry to add/expand to our portfolio. We wish to continue our historic pioneering legacy in the commodity segment while considering new niche products. Our solid cash flow generation, de-leveraged Balance Sheet gives us ample headroom to pursue the said growth strategies.”