Epigral Limited hits 52-week high on boosting CPVC manufacturing capacity
Upstox
2 min read • Updated: April 3, 2024, 7:41 PM
Summary
Epigral Limited has successfully commissioned an additional 45,000 TPA (tonnes per annum) capacity of CPVC (Chlorinated Polyvinyl Chloride) resin. Following the announcement, shares of the company rose 2.40% to close at ₹1,355 per share on NSE.
Epigral Limited on Wednesday announced it has successfully commissioned an additional 45,000 TPA (Tonnes Per Annum) capacity of CPVC (Chlorinated Polyvinyl Chloride) resin plant at its Dahej facility in Gujarat.
Shares of the company which is India’s fourth largest manufacturer of Caustic Soda, Chlorine and Hydrogen were up as much as 2.40% on NSE. They closed at ₹1,355.10 on Wednesday.
The expansion takes Epigral’s total CPVC resin production capacity to 75,000 TPA. The company stated such expansion positions it as the largest CPVC resin facility in the world at a single location. The development of more production capacity is to mainly reduce reliance on CPVC imports, thus also consistent with government supported initiatives like Make in India.
The Gujarat-based company also announced its plans to venture into CPVC compound production. This will have a projected capacity of 35,000 TPA. CPVC Compound production project is currently under progress and is expected to be commissioned in the first quarter of the financial year 2025.
"With the commissioning of the CPVC resin plant, we are advancing towards our goal of becoming a multi-product company, geared up to enhance revenue contribution from the Derivatives & Specialty Chemical segment” Maulik Patel, CMD of Epigral said in the regulatory filing filed with the Bombay Stock Exchange.
According to the company statement, “India's CPVC demand is approximately 2.5 lakh tonnes per annum (TPA) and is still developing, with an annual growth expected to range between 10% and 13%.” CPVC resin and compound are crucial components in the manufacturing process of CPVC pipes and fittings. They are popular for their high heat and chemical resistance properties, which ensures multi-purpose applications in both domestic and International markets.
The company is also engaging in CPVC compound, and the chlorotoluene value chain and dedicated R&D centre to reinforce its position in the specialty chemical segment.