Bodal Chemicals (BCL) has announced the acquisition of Siel Chemical Complex (SCC) located at Rajpura in Punjab.
SCC is a player in chlor alkali segment in North India with current caustic soda capacity of 82,500 tpa and having a well-diversified client base.
The plant is very well integrated with internal and adjoining assured consumption of chlorine for around 80 percent in stable bleaching powder (SBP), hydrochloric acid (HCL), sodium hypochlorite (HYPO) and through pipeline sales to adjacent units. The remaining chlorine gets sold through cylinders to other third-party consumers.
The company will acquire SCC at total cost of Rs 137 crore on slump sale basis (plus stamp duty of around Rs six crore).
The total land size is around 124 acre, of which approximately 60 acre is surplus. Post-acquisition, BCL intends to upgrade technology of the plant which will lead to substantial reduction in power costs, annual repair and maintenance costs (cell refurbishment costs) and increase in production capacity for caustic soda plant from 82,500 tpa to 99,000 tpa.
Apart from this, BCL also announced expansion in the capacity of proposed specialty benzene downstream products plant from 55,000 tpa (announced at board meeting in September 2020) to 78,960 tpa.
The capacity of sulphuric acid & its derivatives will remain unchanged at 3,40,000 tpa. The total cost of the project including one-time infrastructure cost will be Rs 400 crore. Of this, the cost of the benzene downstream products will be Rs 220 crore, from Rs 165 crore announced earlier; and the cost of sulphuric acid & its derivatives will be around Rs 125 crore.
These projects are expected to be completed by the end of Q3/FY23 and generate revenues of around Rs 550 crore from Rs 400 crore announced earlier, at optimum utilisation levels.
Both the projects will be funded by the mix of both internal accruals and long-term debts.
