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GMM Pfaudler Board gives in-principle nod for greenfield manufacturing facility

Monday, 25 May 2020
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The Board of Directors of GMM Pfaudler have given an in-principle approval for setting up a greenfield manufacturing facility for glass-lined equipment in Hyderabad, Telangana, subject to the receipt of the relevant approvals.
The existing capacity of the unit is approximately 2,400 equivalent units per year. This excludes the capacity enhancement expected from the installation of two new gas furnaces by September 2020. 
The existing capacity utilisation is approximately 90 percent. 
The company’s proposed capacity addition is expected to be 500 equivalent units. The company expects to add the capacity in 12 to 18 months. 
The investment required for the manufacturing facility is around Rs 500 million and the mode of financing will be cash reserve. 
The company has seen a sharp increase in the demand for glass-lined equipment over the last 18 months mainly driven by the Indian chemical (Agrochemical & Specialty) industry. 
With the Centre granting the National Investment Manufacturing Zone (NIMZ) status to Hyderabad Pharma City, the Telangana government is going ahead with its plans to allot land to as many as 150 firms in Phase-I.  
The Telangana State Industrial Infrastructure Corporation (TSIIC) has already acquired about 8,500 acre for the pharma city project, which is coming up at Mucherla in Rangareddy district on the outskirts of Hyderabad. 
The government is speeding up the pharma city project as all the required permissions, including environmental clearance, have already been granted by the Centre. The project was conceived in 2015 and it took four years to get the clearances.
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