Chemical maker Vinati Organics today said it has earmarked Rs 120 crore in the current fiscal for expanding manufacturing capacity.
In a filing to the Bombay Stock Exchange, the company said it will use the fund to increase manufacturing capacity for ATBS--used in making personal care products, water treatment chemicals and acrylic fibres--to 18,000 metric tonnes from the current 10,000 metric tonnes.
According to the information posted on company's website, Vinati Organics is the second largest producer of ATBS in the world after Lubrizo.
The company would spend the money in setting up a co-generation facility at Lote, Maharashtra facility, the filing said.
Besides, the company would also spend money on increasing capacity to produce other chemicals and in launching two new products, it added.
The company said its proposed expansion plans and new launches would yield additional revenues of around Rs 150 crore per year and the co-generation plant would help it save Rs 8 crore annually.
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"The total capex for these projects is approximately Rs 120 crore and company plans to fund the same through a combination of internal accruals, debt and equity," Vinati Organics said.
Vinati Organics has reported a revenue of Rs 237.44 crore in the last fiscal.
Company's shares were trading at Rs 81.1 per share, up 6.01 per cent, in the afternoon trade at the Bombay Stock Exchange.