A significant producer of specialty chemicals in India, DCW Limited (“DCW”), intends to increase
its CPVC production by another 10KT.
In order to produce an additional 10KT of production annually, the company also intends to
increase the capacity utilisation of its SIOP facility to 100% with minor line balancing Capex.
According to company estimations, the SIOP de-bottlenecking will be finished by Q1 of FY24 and
the CPVC project is anticipated to be commissioned in the second part of FY24.
However, the Company is working hard to get the projects along quickly. Given the high margin
profile of these products, DCW is investing about Rs. 125 crore in each of these two projects and
expects a significant increase in profitability.
Referring to the impact of these steps, Vivek Jain, managing director, DCW Ltd, commented,
“This CAPEX aligns with our overall strategy of making further inroads into and expanding our
speciality chemicals business. We believe that these CAPEXs- in expanding our CPVC capacity
and taking our existing SIOP capacity to near 100%, will further strengthen our position in
marketplace considering the demand curve for both these products. The proposed Capex
initiatives also furthers our Hon’ble Prime Minister’s “Make in India” initiative. We are committed to
grow our speciality portfolio going forward as well and our strategy and R&D teams are already
focused on the next growth drivers and in identifying products relating to chlorine & other related
chemistry to add/expand to our portfolio. We wish to continue our historic pioneering legacy in the commodity segment while considering new niche products. Our solid cash flow generation,
de-leveraged Balance Sheet gives us ample headroom to pursue the said growth strategies.”
