Sanmar group chalks out Rs 2,825 cr investment plans
Chennai, March 6 (IANS) The $1.5 billion privately-held Sanmar Group, with interests in chemicals, engineering, shipping and steel castings, on Monday announced it has chalked out around Rs 2,825 crore fresh investments plans – on its own and in joint venture.
The investments, in Tamil Nadu, Puducherry and in Egypt, will be in doubling of flagship company Chemplast Sanmar Ltd’s suspension polyvinyl chloride (PVC) capacity, and setting up of hydrogen peroxide plant – both at an outlay of around Rs 700 crore.
The group also plans a chlorinated PVC (CPVC) project in equal joint venture with Kem One SAS of Europe involving a total outlay of Rs 325 crore, and increasing the PVC capacity in its Egypt plant to 400,000 tpa which calls for an investment of around Rs 1,800 crore.
“Work on the doubling up of suspension PVC capacity will begin in 12 months time and the plant is expected to go on stream in couple of years’ time. The outlay will be around Rs 600 crore. The expansion will happen at our existing facility in Cuddalore in Tamil Nadu,” Group Deputy Chairman Vijay Sankar told reporters here.
There is a large demand for suspension PVC and with a current capacity of 300,000 tpa, Chemplast Sanmar is the second largest maker in the country.
According to Sankar, the plan is to take the suspension PVC production capacity to one million ton per annum in stages.
Chemplast Sanmar Managing Director Ramkumar Shankar meanwhile told IANS that they “did not go for expansion earlier as availability of feed stock was an issue. Now couple of plants in the region are coming up and we will now import the feedstock”.
According to him, the company will locate the Rs 100 crore 18,000 tpa hydrogen peroxide project at its Mettur facility and cater to the textile units in the state.
The 20,000 tpa CPVC project in 50:50 joint venture with Kem One will come up at Karaikal in Puducherry.
The investments will be funded by debt and internal accruals.
Meanwhile the Sanmar group launched the Golden Jubilee celebrations of Chemplast Sanmar.