Vipul Organics gains nearly 5% on construction of ₹13 crore new factory building in Maharashtra

Vipul Organics shares rallied as much as 4.95% to an intraday high of ₹184.4 apiece on the BSE before closing higher, extending the gains for the second straight day. Shares of the speciality chemicals maker closed 0.34% higher at ₹176.3 apiece on the BSE.

In a filing to the stock exchanges, the company said that the capital expenditure (Capex) for the state-of-the-art building, spanning 27,000 square feet, stood at ₹13 crore.

The cost of the new factory building has been financed through a combination of equity and debt, Vipul Organics informed the bourses. This includes ₹5.5 crore raised from promoters through preferential shares and ₹7.5 crore in debt from banks. This expansion aims to strengthen Vipul Organics’ capacity for pigment preparations.

After securing environmental clearance and MIDC building plan approval, the construction of a new factory building has been completed. The factory is set to commence production soon, with machinery installation currently underway, Vipul Organics mentioned in the filing.

Vipul Organics said in the filing that the new factory building will play a major role in its efforts to integrate intermediates, pigment powder, and pigment dispersions in both backward and forward operations. This strategic enhancement aims to achieve economies of scale and capitalise on associated advantages.

Last month, Vipul Organics disclosed in a separate exchange filing that it has begun construction of a new facility in Sayakha, Gujarat. Situated within Gujarat's Petroleum, Chemicals and Petrochemicals Investments Region (PCPIR), this facility is set to bolster the company's production capacities in a strategically advantageous location.

Vipul Organics Limited specialises in pigments and dyes. The company operates three manufacturing facilities in Maharashtra at Palghar, Tarapur and Ambernath, and is in the process of establishing a greenfield facility in Sayakha, Gujarat.

Vipul Organics’ Ambernath facility was established in 1998, and it manufactures a range of products such as naphthol, pigment powders, pigment dispersions, reactive dyes, acid dyes and direct dyes.