Aarti Industries Ltd, a specialty chemicals company, has commenced commercial production at its multipurpose ethylation unit in Dahej SEZ, Gujarat, and the second phase of PDA expansion. These units will enable the company to further strengthen its global presence in the end-user applications of agrochemicals and polymers.
The greenfield ethylation unit, which will receive input material from its nitro-toluene plant, has the capacity to manufacture about 8,000-10,000 tonne per annum (TPA) of ethylene derivatives. While the initial product manufactured at this unit finds usage in herbicides, the company plans to add other products in due course with applications mainly into agrochemicals catering to global companies. Aarti Industries expects the ethylation unit, which is first of its kind to be set up in India, to reach near full utilisation within a span of 3-4 years.
Meanwhile, the company has also commenced commercial production of its second phase of PDA expansion from 450 tonnes per month (TPM) to 1,000 TPM. Earlier in FY16, Aarti Industries had scaled-up the capacity of PDA, which is used in engineering polymer, from 250 TPM to 450 TPM. With this, the company has enhanced its presence in high-end polymers and additives, making it the only Indian source for MNCs that are presently importing this product in the country. Aarti Industries expects to reach near full utilisation of these capacities within a span of 3-4 years.
The company said that its other key expansion projects in pipeline such as nitro toluene and its derivatives and co-generation power plants are progressing as per plan and are expected to be commercialised in H2 FY17.