Shree Ram Proteins sets up new oil refinery; stock skids ~2%

7 Mar 2022 , 11:50 AM

In its regulatory filing, Shree Ram Proteins Limited informed the investors and exchanges that the company will be diversifying its operations and setting up a new oil refinery. The Company has ordered a state-of-the-art refining plant for the new business segment.

Company stated that the total estimated Capital Expenditure for this new facility will be approximately Rs22 to Rs24 crore which shall be contributed through internal accruals.

The company will be launching Rape Seed Oil, Groundnut oil, and Cottonseed oil by the end of January 2023. It comes under the category of edible refined oil and shall cater to the company’s domestic market.

The new project is expected to increase the turnover of the Company by Rs150-200 crores annually and increase the bottom line by Rs15-20 Crores annually.

The Company’s project is also eligible to avail various State and Central government incentives in the form of capital and interest subsidies and waiver of electric duty. This investment is fully in line with our existing line of business and will provide operating efficiencies between the business segments.

Shree Ram Proteins is engaged in the manufacturing of de-oiled cottonseed cake and other related products. The Company is among the very few manufacturers of this product in India. The Company has been in operations since 2008 and has an established presence in western India.

Shree Ram Proteins was trading lower at Rs112, down by Rs2.25 or 1.97% against its previous closing price of Rs114.25. It touched the intraday high and low of Rs114.90 and Rs108.55 respectively, so far.