Neogen Chemicals Board Approves Rs 150 cr Capex for Dahej Chemicals Plant

The Board of Directors of Neogen Chemicals has approved an estimated capital expenditure of up to Rs 150 crore for Dahej SEZ Plant to be deployed in FY23.

The plan involves expanding manufacturing capacity of specialty organic chemicals by 60,000 ltr to support new molecules developed in-house and enhancing ability to do multiple chemistries.

Increasing the capacity for manufacturing inorganic salts from 1,200 tonne to 2,400 tonne in existing Inorganic MPP. This is to cater to demand from new approvals received from international customers for regular lithium-based products recently and expected growth in their demand in domestic market.

It also involves setting up new capacity in existing inorganic MPP for 400 tpa for manufacturing specialty lithium salts and additives for electrolyte used in lithium-ion batteries advance chemistry cells targeted for trial approvals in international markets and captive consumption for manufacturing of electrolyte.

The capex will also be utilized towards Dahej site development. The estimated timeline for completing this brownfield capex is by June 2023.

Once commissioned, the overall incremental revenues to be around Rs 250-300 crore per annum. The company expects full utilization by FY25/FY26.