Solaris ChemTech Ltd.

Solaris in the News

Solaris Chemtech announces Rs.120 cr capex, IPO in 4 yrs
May 6, 2005
United News of India

Leading bulk chemicals manufacturer Solaris Chemtech Ltd today announced an investment of Rs.120 crore to increase production capacity of bromine and specialty bromine chemicals within three years and said it would enter the capital market in four years after achieving a turnover of Rs.500 crore.

“We will be spending Rs.120 crore to enhance bromine capacity from 10,000 tonnes per annum to 24,000 tonnes per annum and that of bromine chemicals from 5,500 tpa to 21,000 tpa over the next three years,” Solaris Chemtech Managing Director Manoj Dutt told newspersons here.

He said the funding of the expansion of project will be done through internal accruals and debt. “There is also a possibility of the role of a private equity partner, if needed.” After the expansion drive and touching a turnover of Rs.500 crore, Solaris Chemtech will float an initial public offer in the next four years, Dutt said, adding that the company sees huge growth opportunities in the $200 crore bromine and bromine chemicals market worldwide.

Through the planned investment, he said, the Rs.50 crore bromine and bromine chemicals business will grow to Rs.200 crore in three years.

This will also mean a shift for Solaris Chemtech from a predominantly bulk commodity chemical player to one with a balanced portfolio with 50 per cent of the turnover of value-added specialty chemicals from the company’s bromine division.

The Rs.250 crore Solaris Chemtech, part of the Thapar Group of companies, expects to double its revenues by 2008 on the back of expansion initiatives.

With capacity expansion in place, exports, which currently constitutes 10 per cent of the company’s turnover, will increase to 50 per cent of the Solaris business, Dutt added.