Key Points of Anupam Rasayan Signs MoU with Gujarat Govt for Setting up 3 New Units:
- Anupam Rasayan has signed an MoU with the Government of Gujarat to establish three new units with an investment of Rs. 670 crore.
- The plants will be located in Surat and Bharuch in Gujarat and will manufacture agrochemicals, polymers, and pharma intermediates.
- The company is planning to commence the plants by 2025 and is looking to diversify its product offerings.
- The investment in Gujarat will be a brownfield expansion and the company expects to improve its margins over current levels.
- The asset turnover will be 1.75 times from the new capex, and the company has historically grown over 25 percent and expects to continue at this rate.
- The company has identified strong demand across the portfolio from the fluorination segment, and the new project will service LoIs and contracts signed last year through this expansion.
- Anupam Rasayan operates via six manufacturing facilities in Gujarat, including four in Sachin, Surat, and two state-of-the-art sites in Jhagadia. The shares of Anupam Rasayan were trading 3.1 percent higher at Rs 831 till 10:15 am, while the stock is up 23 percent on a year-to-date basis.
Details of Anupam Rasayan Signs MoU with Gujarat Govt for Setting up 3 New Units:
Anupam Rasayan Signs MoU with Gujarat Govt for Setting up Three New Units
Anupam Rasayan, a leading custom synthesis and manufacturing company of specialty chemicals in India, has signed a memorandum of understanding (MoU) with the Government of Gujarat, with an investment of Rs. 670 crore, to establish three new units. The plants will be located in Surat and Bharuch in Gujarat and will manufacture agrochemicals, polymers, and pharma intermediates. The company is planning to commence the plants by 2025, with a focus on diversifying its product offerings.
According to Vishal Thakkar, the Deputy Chief Financial Officer of Anupam Rasayan, the investment in Gujarat will be a brownfield expansion, with the company expecting to improve its margins over current levels. The asset turnover will be 1.75 times from the new capex. The company has grown over 25 percent historically and expects to continue at this rate. By FY25, revenues with additional capacity should be around Rs 3,000 crore.
The company has stated that there is strong demand across the portfolio from the fluorination segment, and the new project will service LoIs and contracts signed last year through this expansion. In an earlier interview with CNBC-TV18, the Deputy CFO had mentioned that LoI/contracts will give Rs 470 crore of revenue at its peak with Rs 250 crore of capex. In the same interview, he had also informed that fluorination chemistry can get $220-250 million of revenue in the next 5 years.
Anupam Rasayan operates via six manufacturing facilities in Gujarat, including four in Sachin, Surat, and two state-of-the-art sites in Jhagadia. The shares of Anupam Rasayan were trading 3.1 percent higher at Rs 831 till 10:15 am, while the stock is up 23 percent on a year-to-date basis.
About Anupam Rasayan:
Anupam Rasayan produces Specialty Chemicals that serve a diverse range of market segments, including Agrochemicals, Anti-Bacterial solutions, Polymers, Pharmaceuticals, and Material Sciences.
For More Latest News Click Here
