Yasho Industries advanced 3.68% to Rs 1875 after the company's board approved capital expenditure of Rs 350 crore for phase-1 of its greenfield project at Pakhajan (Dahej), Gujarat.
The company intends to manufacture lubricant additives and rubber chemicals with a total capacity of 15500 MT per annum in phase-1 at this new facility.
Post expansion, the total manufacturing capacity will increase from 11,000 MTPA to 26,500 MTPA with a revenue potential of Rs 500 crore to 550 crore in phase-1 at full capacity utilisation.
The project is expected to be completed in 24 months after receiving all necessary governmental approval.
The capital expenditure towards the project will be financed through a combination of internal accruals and debt.
Commenting on the expansion, Parag Jhaveri, managing director & CEO, Yasho Industries, said: The demand for lubricant additives and rubber chemicals is increasing globally. We foresee a reasonable demand for our products in the market on account of our ability to manufacture quality products and our reliability.
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The enhanced capacity will also allow us to approach large multinational consumers who we could not approach in the past due to limited capacity This investment will lay the foundation for the next phase of growth for the company."
Yasho Industries is a pioneer in the field of manufacturing fine and specialty chemicals, exporting all over the globe, including USA, Europe, Asia, Middle East and Brazil.
The company's net profit surged to Rs 14.56 crore in the quarter ended December 2021 as against Rs 6.36 crore during the previous quarter ended December 2020. Sales rose 77.23% YoY to Rs 163.81 crore in Q3 FY22.
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