Published on May 17, 2014
In the year 2013, revenues earned by the Indian chemicals industry were in the range of USD 155-160 billion and in the next two to three years it is likely to rise at a rate of 11-12%, according to the global growth consulting firm Frost & Sullivan. Due to diminished industrial output, the global research firm expects commodity and bulk chemicals to experience slow growth whereas considerable growth is projected to see in the specialty chemicals segment.
A multi-business entity SRF who are affianced in the manufacture of chemical based industrial intermediates have approved a proposal for setting up a second multipurpose plant, for creating additional manufacturing capacity for specialty chemicals at the chemical complex of SRF based in Dahej, Gujarat at an aggregated cost of Rs. 140 crore. The proposal was approved in a meeting held on 9th May, 2014 by the Board of Directors of SRF.
During this year, the company has commissioned 10 projects worth more than Rs 650 crore and with a reference to earlier announcement done on 3rd May, 2014, a specialty chemicals plant has been commissioned and capitalized to build on April 30, 2014 at an aggregated cost of Rs. 52 Crore at the Chemical Complex of SRF located in Dahej, Gujarat.
Moreover, in the same way the company SRF has also commissioned five projects in the month of March 2014 such as Captive Power plant with 15 MW, AHF plant with 20,000 tons/annum, specialty chemical plant with 800 tons/annum, HFC-134a/125 plant with 12500 tons/annum and specialty chemicals plant for agrochemical industry with 500 ton/annum at the chemical complex in Dahej
The company is currently trading at Rs. 392 which is up by 0.46% from its previous closing trading activity of Rs. 390.20 on the BSE. In the last quarter of 2013-14, SRF Ltd. had reported a rise of 8% in its net sales at Rs 884 crore, whereas, during January-March 2014 the net profit after tax (PAT) of the company had plummeted to Rs. 53 crore with a reduction of 26% from Rs 72 crore which was reported a year ago.
After enthralling higher depreciation and interest costs from two new plants specially made overseas, the company last year had consolidated net profit after tax (PAT) of the company that had recorded a decrease of 36% from Rs. 253 crore to Rs 162 crore, moreover the dearth of income from sale of CERs following changes in European Union - Emission Trading Scheme (EUETS).
According to the industry experts, even in a difficult economic scenario the company had performed well and the major investments which have been recently commissioned should provide positive thrust going forward.
