Anupam Rasayan, a leading manufacturer of specialty chemicals in India, has signed a memorandum of understanding (MoU) with the Government of Gujarat to set up three new chemical plants.
The company will invest Rs. 67 billion in the brownfield expansions, which will be located in Surat and Bharuch in Gujarat.
The plants are expected to commence operations by 2025 and will manufacture agrochemicals, polymers, and pharma intermediates.
Expansion Plans and Financial Outlook
The investment in the new chemical plants is expected to improve the company’s margins over current levels. The Deputy Chief Financial Officer of Anupam Rasayan, Vishal Thakkar, stated that the asset turnover will be 1.75 times from the new capex, and the company expects to continue growing at a rate of over 25% historically. By FY25, the revenues with additional capacity should be around Rs. 30 billion, according to Thakkar.
Meeting Demand for Fluorination Segment and Servicing Contracts
Anupam Rasayan’s expansion plans have been driven by strong demand across its portfolio from the fluorination segment. Additionally, the company has promised to service Letters of Intent (LoIs) and contracts signed last year through this expansion.
Signing a Letter of Intent worth $120 Million with a Leading Japanese Chemical Company
Anupam Rasayan has signed a Letter of Intent (LoI) worth $120 million (Rs. 984 crores) with one of the leading Japanese chemical companies. This move highlights Anupam Rasayan’s commitment to expanding its global reach and strengthening its position in the chemical industry.