In addition to the Rs 100 crore of capital expenditure expected to be completed during FY12, Vinati Organics (VOL) is embarking on a further capital expenditure which would add 3 new products to its portfolio. The total capex for the same is about Rs 50 crore and is to be funded through a combination of debt and internal accruals.
The company is planning to invest in High Purity MTBE -6000 MT capacity, Di-isobutylene -5000 MT capacity and Di Ethyl Aniline-3000 MT capacity and undertaken these in the present facilities of Mahadm and Lote and is expected to be completed by mid FY13. The new products are expected to yield additional revenues of Rs 100 crore per year.
Vinati Organics is a specialty chemical company producing organic intermediates, monomers and polymers. Vinati is the world’s largest manufacturer of Isobutylbenzene (IBB), the basic raw material in manufacture of Ibuprofen, with a capacity of 14,000 TPA.