Rubber chemicals-maker Nocil, an Arvind Mafatlal Group firm, has firmed up plans to set up a new plant in Dahej with an initial investment of Rs 250 crore to meet growing demand from domestic tyre-makers.
"A suitably modified plan has been finalised for the project at a cost of approximately Rs 250 crore and the project is expected to be commissioned during FY'2011-12," Nocil said in a statement.
The company had originally planned to complete the first phase of work on the proposed plant by the end of 2009 and the second phase by 2011.
The management's revised plan to go ahead with the first phase of the project was taken in view of the higher growth of the automobile sector in India and the major expansion plans being implemented by domestic tyre companies.
The debt-free company, however, did not mention how it proposed to fund its investment.
"With the expansion of the projects by the domestic tyre manufacturers, we expect more than adequate demand for the additional facilities that will come up with this project," it said.
Nocil's products from existing plants in Maharashtra are used by tyre, industrial rubber products and consumer rubber products manufacturers.
Nocil had recorded a Rs 460 crore turnover and Rs 50 crore net profit in 2009-10. It produced 36,697 tonnes of rubber chemicals and intermediaries during the year, 9 per cent more than in the previous year.
During the first three months of the current fiscal, its production was 10,019 tonnes, 15.75 per cent higher than its output of 8,653 tonnes in the corresponding period of the previous year.
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