Bodal Chemicals to Deversify into Benzene Downstream, Expands Sulphuric Acid Capacity

Bodal Chemicals Ltd announced diversification into Benzene downstream products and expansion of Sulphuric Acid & Derivatives.

The company intends to build a benzene plant with 55,000 MTPA capacity and expand Sulphuric Acid capacity to 340,000 MTPA at Saykha GIDC, Bharuch, Gujarat.

The company said that these products will further enhance ‘Specialty Chemicals Segment’ for Bodal and will open new growth areas for the company as the company intends to further expand in Specialty Chemicals segment in the future.

By setting up the integrated product chain at the plant will be led to cost efficiency, better productivity and high margins for the company, it said.

The total cost of the project including one-time infrastructure costs will be around Rs 345 crores ($46.6 million). Out of that, the cost of Benzene downstream products will be around Rs 165 crores ($22.3 million) and cost of Sulphuric Acid & Derivatives will be around Rs 125 crores ($16.9 million).

At optimum utilization, the company expects these two projects to generate revenues of around Rs 400 crores ($54.1 million). Bodal has already purchased the land costing around Rs 85 crores ($11.5 million). Projects will be funded by term loan as well as internal accruals.

The company intends to start the project by end of January 2021, and it is expected to get completed by end of September 2022.

Bodal is the most integrated Dyestuffs Company in India and the biggest manufacturer of Dye Intermediates in India. The Company’s product range covers Dyestuffs, Dye Intermediates, Basic Chemicals, and other Specialty Chemicals. It has a unique and integrated product line and presence across value chain for Dyestuffs.