DCW jumped 5.73% to Rs 54.40 after the speciality chemical company said it plans to double its CPVC capacity by adding another ten thousand tonnes (10KT) capacity.
DCW said it also plan to augment the capacity utilisation of its SIOP plant to 100% with some line balancing Capex to generate an additional 10KT of production per annum.The CPVC project is expected to be commissioned in the second half of FY24 & SIOP de-bottlenecking to be completed by Q1FY24. However, the company is making concerted efforts to try and fast track the projects.
DCW is investing around Rs 125 crore on both of these two projects. It anticipates a substantially boost to the profitability, given the high margin profile of these products.
Vivek Jain, managing director, DCW, commented, "This CAPEX aligns with our overall strategy of making further inroads into and expanding our speciality chemicals business. We believe that these CAPEXs- in expanding our CPVC capacity and taking our existing SIOP capacity to near 100%, will further strengthen our position in marketplace considering the demand curve for both these products.
We are committed to grow our speciality portfolio going forward as well and our strategy and R&D teams are already focused on the next growth drivers and in identifying products relating to chlorine & other related chemistry to add/expand to our portfolio."
DCW is engaged in one of the multi-product multi-location & heavy chemical manufacturing company. The company's net profit rose 28.5% to Rs 25.27 crore on 22% jump in revenue from operations to Rs 697.78 crore in Q2 FY23 over Q2 FY22.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
