Godrej Industries’s Chemicals Division has planned a capex of over Rs 250 crore to fuel its capacity expansion plans and is eyeing a 20 per cent growth in its sales in FY 11, a top company official said.
The company has earmarked a capex of Rs 230 crore for setting up a new chemicals manufacturing unit at Ambarnath in Thane and another Rs 20-50 crore for expanding the capacity of its manufacturing plant at Valai, Gujarat.
“The rise in commodity prices in the last few months has benefited our chemical business. Therefore, we are seeing a 20 per cent increase in our sales in this fiscal. We also plan to spend over Rs 250 crore to expand our production capacity,” Godrej Industries MD Mr Nadir Godrej told reporters on the sidelines of a CII event here on Thursday. The Ambernath unit would be mainly manufacturing different kinds of fatty acids, he said.
At its Valia plant, the company would produce fat splitters and speciality fatty acids such as erucic acids. “The Indian chemical industry will see a substantial growth over the years. To keep pace with the growing economy, we will continuously make investments for capacity expansion,” Mr Godrej added.