Epigral Limited (Epigral), India's leading integrated chemical manufacturer, recently announced its financial results for the quarter ending September 30, 2024. The company reported robust growth in PAT for Q2FY25 at Rs 81 crore, a jump of 111 per cent compared to Rs 38 crore in Q2FY24. Quarterly revenue rose by 32 per cent to Rs 632 crore, up from Rs 479 crore in Q2FY24.
Capex and Expansion
Epigral's board has approved an expansion project for CPVC and Epichlorohydrin (ECH) production. CPVC resin capacity will increase to 1,50,000 TPA (tonnes per annum) with an additional 75,000 TPA, while ECH capacity will grow to 1,00,000 TPA with an additional 50,000 TPA at the company's Dahej facility in Gujarat.
With this expansion, Epigral's total CPVC resin capacity will become the largest in the world, and its Epichlorohydrin capacity will be the largest in India. These expansions will meet the growing domestic demand for these products and align with the Government of India's Atmanirbhar Bharat and Make in India initiatives, promoting self-reliance.
In its commitment to sustainability, Epigral will invest in Pure.rBrine™ technology to recycle and reuse by-products as raw materials for other products, reducing waste discharge and greenhouse gas emissions across the supply chain. This initiative will also enable cost rationalisation by using by-products within its integrated complex.
Commenting on the results, Maulik Patel, Chairman and Managing Director of Epigral, said: "Epigral witnessed topline growth of 37 per cent in H1FY25, driven by a 17 per cent sales volume increase in high-value derivatives and specialty products, despite a marginal drop in realisations across products. Revenue from derivatives and specialty business reached 59 per cent in Q2FY25, up from 46 per cent in Q2FY24."
"At Epigral, we focus on continuous growth and introducing products for the first time in India. We entered CPVC and ECH as import substitutes, and the strong market acceptance has encouraged us to expand production in both. The additional capacities are expected to be operational by H1 of FY2027, contributing from FY2027 onwards. Our strategy to diversify into value-added products, strengthen our integrated complex, and invest in capex will enhance scale efficiency and create value for our shareholders," added Patel.