The Board of Directors of NOCIL has granted approval for a capital expenditure of up to Rs 250 crore. This investment is intended for capacity enhancement for rubber chemicals at the company's facility in Dahej, Gujarat. The nod was given at a meeting held on 26 March, 2024.
Currently, the existing capacity at the Dahej plant stands at 1,15,000 tpa for rubber chemicals, operating at approx. 65 percent capacity utilisation. Following this, the proposed capacity addition would represent a 20 percent increase over the existing capacity.
The approved capex will primarily be funded through internal accruals. This strategic investment underscores NOCIL's commitment to meeting the growing demand for rubber chemicals, and solidifying its position in the industry.