Specialty chemical maker DCW eyes capacity expansion with Rs 125 cr investment

The chemical supplier is investing in building a new project and opening a bottleneck at an existing plant to reach 100 per cent capacity.

FPJ Web DeskUpdated: Wednesday, November 23, 2022, 09:39 PM IST
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The Indian specialty chemical sector's contribution to the global market is set to go up by 2 per cent to hit 6 per cent by 2026. Major chemical supplier Dhangadra Chemical Works (DCW) is eyeing a major chunk of this demand by funding a 10 kilo tonnes increase in its production capacit. The firm is also planning to spike production at its SIOP plant to 100% by infusing additional capital expenditure.

The firm has estimagted that its CPVC project will be built by mid 2023 or in the last two quarters of FY24. The only thing to be done at the SIOP plant is to get rid of a bottleneck, to speed up operations.

DCW is spending almost Rs 125 crore for the projects and hopes to see a significant increase in profit as margins increase. Thanks to these announcements, DCW was trading 4.57% higher from its previous closing of Rs 51.45 on Sensex.

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