Yasho Industries BoD approves its greenfield project aiming for INR ~550 Cr revenue potential in Phase 1

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The company looks at a total manufacturing capacity increase from 11,000 MTPA to 26,500 MTPA

Mumbai, March 16th, 2022 (GNI): Yasho Industries Limited (BSE: 541167 | ISIN: INE616Z01012) a leading manufacturer & supplier of specialty and fine chemicals, today announced that the Board of Directors of the Company has approved a capital expenditure of INR 350 Cr in Phase 1 for its greenfield project at Pakhajan (Dahej), Gujarat. The company intends to manufacture lubricant additives and rubber chemicals with a total capacity of 15500 MT per annum in phase 1 at this new facility. Post expansion, the total manufacturing capacity will increase from 11,000 MTPA to 26,500 MTPA with a revenue potential of INR 500 Cr to 550 Cr in Phase 1 at full capacity utilisation. The project is expected to be completed in 24 months after receiving all necessary governmental approval. The capital expenditure towards the project will be financed through a combination of internal accruals and debt.

Commenting on the expansion, Mr. Parag Jhaveri, Managing Director & CEO, Yasho Industries Limited said, “The demand for lubricant additives and rubber chemicals is increasing globally. We foresee a reasonable demand for our products in the market on account of our ability to manufacture quality products and our reliability. The enhanced capacity will also allow us to approach large multinational consumers who we could not approach in the past due to limited capacity This investment will lay the foundation for the next phase of growth for the Company,” stated in the press release.

About Yasho Industries Limited is a pioneer in the field of manufacturing fine and specialty chemicals, exporting all over the globe, including USA, Europe, Asia, Middle East and Brazil. Guided by a Management Team that has over 30 years of experience in the industry, it is fully equipped with well-established Automated Manufacturing Facilities designed to manufacture multiple product ranges. The company has a dynamic and far reaching customer base, and rakes in more than 60% of its revenue through export. It is ISO 9001:2015 & FSSC 22000 certified and is a trailblazer in the chemical industry. It continues to grow rapidly, while catering to a huge array of products mapping across various industries and has a strong long-term relationship with customers in more than 40 countries. The company has three well equipped manufacturing units located in Vapi, Gujarat.