Indofil Organic Industries, the Mumbai-based agrochemical manufacturer, is planning to set up a greenfield project to produce 18,000 tonnes of ethyl diamine-based products (EBDC) fungicides/formulations at an investment of Rs 130 crore.
The company has already acquired land in Dahej (Gujarat) for the proposed state-of-the-art project and ordered the plant and machinery to commission the commercial production on this plant by the first quarter of 2010. Along with the new production facility, the total production capacity of the company would go up to 38,000 tonnes which would help penetrate global market effectively.
India produces about 23,000 tonnes of mancozeb, a type of agrochemical which finds application in fungicides and consumes about 18,000 tonnes. But the product manufactured locally finds huge demand in global markets mainly in Europe. In the local market, mancozeb is quoted at Rs 170 per kg.
Indofil is planning to invest Rs 80 crore of the proposed cost for capital expenditure while the remaining Rs 50 crore would be spent for working capital requirement. Of the total investment, Rs 62 crore is proposed to be met through equity by way of rights issue of shares to existing shareholders. The remaining Rs 68 crore would be raised through debt for which the company is in talks with financial institutions, a company official said.
The company is coming out with its rights issue on September 19, 2008 by offering 3 shares for every 4 shares held at Rs 70 per share.
Indofil has 6 multi-products manufacturing plants at Thane, Vapi, Navi Mumbai and three units in Pune. Out of these, 5 units are ISO:9001 and one unit is ISO:14001 certified. The company manufactures herbicides, acaricides, insecticides, growth promoters and bactericides.
The company also manufactures specialty and performance chemicals for leather, textiles, plastics, paper, construction, petroleum coatings and adhesive industries. Indofil’s mancozeb has been registered in over 50 countries.
During 2007-08, the total turnover of the company shot up to Rs 466.42 crore as compared to Rs 233.51 crore in the previous year. Similarly, net profit shot up to Rs 13.36 crore as compared to Rs 8.32 crore in the previous year.
