Yasho Industries board nods Rs350 crore capex for greenfield expansion at Pakhajan, Gujarat; Stock zooms 4%

17 Mar 2022 , 09:20 AM

Yasho Industries Limited, a leading manufacturer & supplier of specialty and fine chemicals, has announced that the Board of Directors of the Company has approved a capital expenditure of Rs350 crore in Phase 1 for 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 Rs500 crore to Rs550 crore in Phase 1 at full capacity utilisation.

Further, 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, said Company.

Commenting on the expansion, Parag Jhaveri, Managing Director & CEO, Yasho Industries Limited 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. 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."

On Thursday morning trade, Yasho Industries was trding at Rs1885 per piece higher by 4.23% on Sensex.