- VOL to increase 2-Acrylamido 2 Methyl Sulfonic Acid (ATBS)plant capacity from present 10000 MT to 18000 MT
- 6MW cogeneration plant at Lote facility
- Expansion of Tertiary Butyl Acrylamide (TBA) capacity from 300 MT to 1000 MT
- Expansion of Vintreat Cap Polymers capacity from 1000 MT to 3500 MT
- Launching of 2 new products Diacetone Acrylamide (DAAM) & Tertiary Octyl Acrylamide (TOA) with capacity expansion of 1000 MT & 300 MT respectively.
Vinati Organics Limited (VOL) (BSE: 524200), the world’s largest manufacturer of IBB (Isobutyl Benzene) and 2nd largest manufacturer of ATBS, announced its capex plans.
The total capex for the planned projects is approx Rs. 120 Crores and the Company plans to fund the same through a combination of internal accruals, debt and equity.
The worldwide ATBS market has been growing at a robust pace and is expected to grow even more significantly in the coming years. The demand for ATBS has been growing at roughly 20% but VOL has been growing at more than 35% in the ATBS segment.
VOL plans to increase the capacity from the present 10000 MT to 18000 MT as a part of its expansion plans. Its Isobutylene plant, one of the key raw materials for ATBS, has already been commissioned in June 2010. It’s the largest IB plant in India and this backward integration would further strengthen VOL’s quest for leadership position in ATBS.
Besides the capacity expansion of ATBS, VOL is also expanding its capacities of TBA and Vintreat Cap Polymers. TBA is going to be expanded from 300 MT to 1000 MT and Vintreat Cap Polymers is going to be expanded from 1000 MT to 3500 MT.
Apart from the above expansions, VOL also plans to launch 2 new products viz., Diacetone Acrylamide (DAAM) and Tertiary Octyl Acrylamide (TOA). Both these acrylamides are high value products and are used as homo polymers and co-polymers for manufacturing adhesives, coatings, resins, cosmetics etc. The DAAM plant shall be of 1000 MT capacity and TOA shall be a 300 MT capacity plant.
Keeping in mind the increased energy consumption that would arise because of the new facilities and expanded capacities, VOL has planned to setup a captive 6MW co-generation (coal based) plant at its Lote facility which is expected to be operational by the end of FY12. The co-generation plant would not only help VOL in becoming energy self-sufficient but would also entail significant cost saving to the tune of Rs. 8 Crores on a yearly basis.
Commenting on the occasion, Ms Vinati Saraf Mutreja said “Vinati is already ahead of the competition as far as the ATBS segment is concerned. The added capacity expansion in the segment is expected to make us world’s largest manufacturer of ATBS. Additionally the new products & expansions is also expected to yield additional revenues of approximately 150 crores per year"
About Vinati Organics Limited
Incorporated in the year 1989, VOL is into the manufacturing of speciality organic chemicals. It is the world's largest manufacturer of Iso Butylbenzene (IBB) and the 2nd largest manufacturer of ATBS. Its manufacturing facilities are situated at Mahad and Lote, Maharashtra. Its products include (IBB) which is used as a basic raw material for manufacturing Ibuprofen, an anti-inflammatory analgesic bulk drug. IBB is also used in perfumery industries. ATBS is used in oil–field chemicals, Enhanced Oil Recovery (EOR) chemicals, water treatment, acrylic fiber manufacturing, adhesives, and personal care products, as well as in mining industry, coatings as dispersing and flocculating agent. It exports more than 75% of its production across USA, Europe, Asia, Middle East and China and has been the preferred source for some of the largest chemical manufacturing companies in the world. VOL is listed on the Bombay Stock Exchange and National Stock Exchange. It had a Net Sales of Rs. 232 Lacs for FY10.
