The Hindu Business Line : Kanoria Chemicals completes land acquisition for Vizag plant

“We have acquired 30 acres of land and currently the registration process is on. If everything goes as per our plan, the new unit will become operational by March 2010,” officials told Business Line. Kanoria Chemicals currently manufactures pentaerythritol at its Ankleshwar unit in Gujarat.

“In Gujarat, we also have a distillery to manufacture ethanol, which is further synthesised to produce pentaerythritol.

“But the Vizag unit will not have a distillery and we plan to procure ethanol through the Vizag port,” the official said.

“In the Ankleshwar unit, we use membrane technology, for which there is a technical tie-up with Asahi Glass of Japan. But we are talking with several other companies for the Vizag unit and examining other technical options,” officials said.

membrane technology

Explaining the rationale for looking at new technologies, the officials said “there is only one supplier of membrane in the world and sometimes membrane is not available.”

“Basically, we are trying to ensure raw material security,” he said.

Once the technology is finalised, the company will place the orders for machinery and start civil construction works.

“Once the civil works begin around October this year, it will take around 18 months for the plant to go on stream,” the official said.

Renukoot plant

Kanoria Chemicals also has a caustic soda manufacturing facility at Renukoot.

The company reported Rs 432 crore net sales in 2007-08 and had announced a dividend pay out of 30 per cent.

“For 2008-09, the growth rate may be higher than the industry average of 18-20 per cent as we have recently added new capacity at the Renukoot plant,” the official said.

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