Our capex plan and back­ward in­te­gra­tion will re­in­force long-term sus­tain­abil­ity of our busi­ness

Dalal Street Investment Journal - - COMMUNICATION FEATURE -

in­creased our Vinyl Sul­phone ca­pac­ity from 6,000 MTPA in FY12 to 7,800 MTPA in FY17. In FY15 we added CPC Green Pig­ment to our prod­uct bas­ket through de­merger and trans­fer from Asahi Song­won Col­ors Ltd.. The ca­pac­ity of CPC Green Pig­ment was fur­ther in­creased by 480 MTPA to 1920 MTPA in FY17. These in­creased ca­pac­i­ties ac­counted for in­crease in sales vol­umes. Apart from this, over the past year, due to the crack­down on the pol­lut­ing in­dus­tries by the Chi­nese gov­ern­ment, our ma­jor com­peti­tors for Vinyl Sul­phone faced shut­down. As a re­sult of this, In­dian chem­i­cal com­pa­nies, in gen­eral, and us specif­i­cally ex­pe­ri­enced ben­e­fits in terms of bet­ter re­al­iza­tions. We ex­pect this to con­tinue for the fore­see­able fu­ture. di­ver­sify our port­fo­lio through the pro­duc­tion of H-acid, Pre­cip­i­tated Sil­ica and Pig­ment Vi­o­let. In or­der to fur­ther im­prove our mar­gins, we have also de­cided to back­ward in­te­grate by man­u­fac­tur­ing CPC Crude Blue, which is a raw ma­te­rial for CPC Green Pig­ment. For the fi­nan­cial year 2018, we ex­pect a 10% rev­enue growth Y-O-Y with EBITDA mar­gins of 25-28%. We are fairly con­fi­dent of achiev­ing this tar­get on ac­count of 480 MTPA in­creased ca­pac­ity of CPC Green Pig­ment, along with the 100 MTPA ca­pac­ity of Pig­ment Vi­o­let com­ing into play, plus some part of the capex plan com­ing into play in the fourth quar­ter of FY18.

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