The Hindu Business Line : Jayshree Chem to hike caustic chlorine production

Encouraged by the future growth of caustic soda consumption by the domestic aluminium and paper industries, Jayshree Chemicals Ltd (JCL) has decided to augment the annual caustic chlorine manufacturing capacity from 70 tonnes to 170 tonnes in the first phase, entailing an investment of about Rs 120 crore. The programme is to be completed by March, 2008, while in the second phase, the annual capacity will be raised to 220 tonnes by 2012.

Indicating this here on Monday, the company's Executive Director, Mr D. K. Maheshwari, said that a comprehensive resource mobilisation scheme will be ready by December this year. The scheme, which includes private placement, public issue, rights issue and debts, aims to arrange the investments earmarked for the first and second phase expansion plans.

Mr Maheswari said that the company, in spite of depressed demand for caustic soda in the first quarter under review, has earned a profit before tax of about Rs 1 crore on a turn over of about Rs 11.23 crore. The demand was depressed due to delay in capacity addition of alumina refineries by major domestic aluminium producers.

However, the demand for the company's products is likely to improve with the setting-up of additional production capacities in aluminium units in Orissa.

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