SRF Board approves capex for two chemical plants

SRF Board, in tune with the company’s strategic intent of expanding its chemicals business, has approved two separate capex proposals aggregating INR 345Cr in the recently held meeting. One of the proposals pertains to setting up a Multi-Purpose Plant for specialty chemicals at an estimated cost of INR 180Cr and the second one for Chloromethane (CMS) plant at an estimated cost of INR 165Cr in its Chemical Complex at Dahej in Gujarat.
The new Multi-Purpose plant is expected to further augment SRF’s capability to develop and commercialise new molecules for agrochemicals and pharmaceutical sectors. The new unit will enable SRF to cater to wider range of specialty products for emerging needs of the sector. The second project that got approved in the Board, aims to double SRF’s capacity for Chloromethanes to 80,000 tonnes per annum.
The new Chloromethane plant will enable SRF to meet the growing needs of its Pharma customers for Methylene dichloride (MDC) and will strengthen its foothold in the Indian market, which remains a net importer of Methylene dichloride (MDC).
SRF will thus consume a large part of Chloroform for manufacturing HCFC 22, which will be increasingly used as a feedstock for specialty chemicals, a business of SRF that has been growing steadily for last five to six years. The new Chloromethane plant with an annual capacity of 40,000 tonnes is scheduled to be commissioned in December 2017.

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