Tata Chemicals has announced that the company will spend Rs 10.5 billion between second half FY23 upto first half of FY24.
Speaking at Q2 FY23 Earnings Conference Call, Nandakumar Tirumalai, Chief Financial Officer, Tata Chemicals Limited said, “We spent Rs 3.04 billion in Q2 of the current year in CapEx. So Rs 10.5 billion is amount to be spent in second half up to H1 ‘24. In the next one year’s time, Rs 10.5 billion to be incurred approximately.”
“We have a 10,000 tons silica plant which is more or less fully utilized. and we have a very good traction from customers especially the rubber and tyre customers for additional green tires where it’s partly added to replace carbon black. We are putting up 50,000 ton in two streams of 25,000 ton each, and this CapEx will be funded through internal accruals. The estimated amount is about Rs 4 billion and it’ll take about 30 months to execute. We will start the execution plan shortly and it has a good return profile including return on capital,” R. Mukundan, Managing Director & CEO, Tata Chemicals Limited commented.
“As far as nutraceuticals is concerned, we are still not operating at full utilization of the 5,000-ton plant. We are going through the process of customer approval, and we should probably be getting closer by the end this year, and we should be getting the nutraceutical plant closer to full utilization,” he added.