Investor Presentation
Capacity Expansion
FAIRCHEM
A FAIRFAX COMPANY
1,20,000
•
Over the years Fairchem has gone through various stages of expansion, debottlenecking
and technological advancements to create a one of its kind world class facility.
Majority of the capacity expansion has been undertaken primarily through internal
accruals.
The company uses a judicious strategy on capacity expansion by evaluating market
demand-supply scenario and working very closely with its customer base to understand
their needs and requirements.
The company undergoes a major capex every few years only once the plant utilisation
reaches optimum levels.
Fairchem's last major capex was done from FY14 to FY16 when it enhanced the capacity
from 18,000 MTPA to 45,000 MTPA
Plant Capacity (Metric Tons)
2.5X
90,000
72,000
•
.
In FY21 the company began its next phase of capacity expansion and had increased the
capacity to 72,000 MTPA as on 31st March 2021.
Furthermore, it plans to increase the capacity to 90,000 MTPA by end of H1-FY22 and to
1,20,000 MTPA by end of FY22.
45,000
The total capex spend to enhance the capacity from 45,000 MTPA to 1,20,000 MTPA
along with forward integration of existing product streams is expected to be under INR
100 crores.
FY20
FY21
H1-FY22
FY22
The capacity expansion has the potential to more than double the company's revenues in
the coming years, besides enhancing the return ratios.
Investor Presentation | www.fairchem.in
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