Yasho Industries to invest Rs 350 cr to set up greenfield project in Gujarat

Specialty and fine chemicals manufacturer Yasho Industries Ltd has announced a capital expenditure of Rs 350 crore for Phase 1 of its greenfield project at Pakhajan (Dahej), Gujarat.

The company's board has approved the investment for phase 1 at this new facility to manufacture lubricant additives and rubber chemicals with a total capacity of 15,500 million tonnes per annum (MTPA), Yasho Industries said in a statement.

''Post expansion, the total manufacturing capacity will increase from 11,000 MTPA to 26,500 MTPA with a revenue potential of Rs 500 - 550 crore in Phase 1 at full capacity utilization,'' it added.

The project is expected to be completed in 24 months after receiving all necessary government approvals, the company said.

The capital expenditure towards the project will be financed through a combination of internal accruals and debt.

''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,'' Yasho Industries MD & CEO Parag Jhaveri said.

Yasho Industries has three manufacturing units located in Vapi, Gujarat. In FY 2020-21, its revenue was Rs 359.44 crore. Over 60 percent of its revenue comes through export.

(With inputs from PTI)

Published on: Thursday, March 17, 2022, 02:39 PM IST