DCW Limited, a leading specialty chemical company in India, plans to double its CPVC capacity by adding another 10KT capacity.  The company also plans to augment the capacity utilisation of its Synthetic Iron Oxide Pigment (SIOP) plant to 100% with some line balancing Capex to generate an additional 10KT of production per annum.  As per company estimates, the CPVC project is expected to be commissioned in the 2nd half of FY24 and SIOP de-bottlenecking to be completed by Q1 FY24. However, the company is making concerted efforts to try and fast track the projects. DCW is investing around Rs. 125 crore on both of these two projects and anticipates a substantially boost to the profitability, given the high margin profile of these products. Referring to the impact of these steps, Vivek Jain, Managing Director, DCW Ltd. said, “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 the marketplace considering the demand curve for both these products. The proposed Capex initiatives also furthers our Prime Minister‘s “Make in India” initiative.” “We are committed to growing our specialty 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 and 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,” added Jain.  DCW is a speciality chemical company manufacturing PVC, C-PVC (chlorinated polyvinyl chloride), Caustic Soda, Soda Ash, and SIOP. The company is the only domestic manufacturer of C-PVC, a versatile thermoplastic used mainly for manufacturing hot and cold-water pipes, industrial liquid handling, and a wide range of products serving a variety of applications. DCW’s Caustic Soda, SIOP, and PVC Units are in close proximity to the Tuticorin Port in Tamil Nadu, giving the company a competitive edge over its peers in exporting its products to global markets.

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