Begin typing your search...

DCW Limited Unveils Major Expansion of CPVC Production Capacity with Rs140 cr Investment

The company’s competitive edge lies in its ability to use its own S-PVC (Suspension PVC) as a raw material when market conditions are favourable

DCW chemical industry

DCW Limited Unveils Major Expansion of CPVC Production Capacity with Rs140 cr Investment
X

22 Oct 2024 7:09 PM IST

Hyderabad: DCW Limited, a leading specialty chemical company, has announced a significant investment to expand its CPVC (Chlorinated Polyvinyl Chloride) production capacity from 20,000 metric tonnes (MT) to 50,000 MT. This expansion involves increasing capacity by 30,000 MT through a combination of new installations, de-bottlenecking existing facilities, and process optimisation.

The capacity increase will be rolled out in phases, with 20,000 MT expected to be operational in the second half of Q2 FY26 and an additional 10,000 MT by the end of FY26. This phased approach ensures rigorous quality control while effectively meeting the growing demand for CPVC, which is renowned for its superior thermal and chemical resistance properties in construction, plumbing, and industrial piping applications.

The company’s competitive edge lies in its ability to use its own S-PVC (Suspension PVC) as a raw material when market conditions are favourable. This capability guarantees a consistent quality and supply of inputs for CPVC production, further strengthening the company’s position in the market.

The total investment of Rs140 crore aligns with the rising demand for CPVC across various sectors. To maintain financial prudence, DCW Limited plans to fund approximately 30 per cent of the project through internal accruals and balance through debt, but maintaining its position for a reduction in overall debt in the coming years.

Saatvik Jain, President of DCW Limited said: “This investment is a key pillar of our growth-with-deleveraging strategy, which allows us to expand while maintaining a strong financial position. By utilising our existing infrastructure and expertise for growth, we are positioning DCW as a major player in the specialty chemical space. With a demand-supply mismatch for CPVC in India, this expansion further aligns with the ‘Make in India’ initiative of our Prime Minister and supports the country’s growing infrastructure needs.” “This capacity expansion positions the company to further solidify its leadership in the specialty chemicals market catering to more sophisticated and stable end-user markets, ensuring better profitability and long-term growth opportunities,” he added.

DCW Chemical industry Capacity expansion CPVC 
Next Story
Share it