Coastal Corporation stocks surges ~3% on commencement of trial production at its new plant

6 Apr 2022 , 10:33 AM

Coastal Corporation Ltd has announced the trial production of its new plant i.e Unit III at Kakinada SEZ on February 05, 2022 and is now fully ready to be commissioned.

As per regulatory filing, the CAPEX of Rs70 crore was invested by the Company in the Unit III. The new facility has production capacity of 35 MTPD. This facility is a completely integrated facility. The trial production is started on April 05, 2022.The Commercial production will be commenced in the next 10 to 15 days.

Unit III shall augment Company’s value-added supply to various parts of the Globe. The new plant will be an important base for expanding global sales in the future, said company.

This development is in line with the Company’s commitment towards fostering sustainable growth while also creating job opportunities in the region. This capacity addition will enable us to expand our footprints and ensure sufficient and timely supplies thereby adding to efficiencies of the supply chain.

The company had also earlier announced about 3.6 MW DC Solar Power Plant at Daleshwaram Village, Kanchili Mandal, Srikakulam with a Capex of INR 14 Crore. The project is likely to commence in the next week and the company has received approval from Andhra Pradesh Chief Electrical Inspector to Govt.(APCEIG) for captive consumption and the Company would be getting credit set off of units consumed at Unit-I, II & III to the extent of units generated at solar plant.

This initiative to move towards renewable energy and reduce carbon foot print, will also reduce the power cost and the Company's dependence on APEPDCL.

At around 10:22 AM, Coastal Corporation was trading at Rs409.85 apiece up by Rs11.2 or 2.81% on Sensex.