After 9-year gap, FACT restarts Caprolactam production

Immediately after a gap of nine yrs, the public sector Point has restarted its Caprolactam manufacturing, which was suspended in 2012 next the rise in feedstock value of naphtha and furnace oil.

Caprolactam, produced only by Point and Gujarat Point out Fertiliser and Chemical compounds in India, is a raw material for the manufacturing of Nylon-six, which in flip can utilized for the manufacturing of tyre cords, filament yarn, fishing nets, engineering plastics, and many others.

Demand likely

The domestic demand from customers for the product is in the array of 1.two-1.three lakh tonnes per yr. The once-a-year manufacturing of fifty,000 tonnes of Caprolactam will also outcome in the manufacturing of two.25 lakh tonnes of Ammonium Sulphate fertiliser. Point Caprolactam will be a important import substitution.

It is predicted that the resumption of Caprolactam manufacturing would incorporate about ₹700 crore per annum to the turnover, the firm said in a assertion. In accordance to official resources, the fertiliser firm had discontinued Caprolactam manufacturing in October 2012 in the wake of mounting price of benzene and naphtha thus creating the task un-feasible. In 2013, Point shifted to organic gas sd its new feedstock, but for the duration of that time its value was ruling higher, blocking the re-get started of Caprolactam.

Even so, the slump in the crude selling prices in 2015-16 and resultant drop in gas selling prices in the worldwide marketplace has prompted the firm to re-get started Caprolactam functions.

Stock movement

The marketplaces have been providing a thumbs-up to the firm with its share value taking pictures up sharply from ₹40 to ₹150 amounts and is now quoting at about ₹125, suggests Akshay Agarwal, Handling Director of the Kochi-dependent Acumen Financial Solutions.

The firm has been not too long ago creating waves in the PSU sector and has turn out to be one of the swiftest expanding public sector undertakings. “The new line of manufacturing will enable Point to improve the momentum and we count on the firm to increase its turnover from the present ₹3,200 crore to about ₹4,200 crore in the present yr,” he said.

Hitherto, Caprolactam was being imported from South Korea and Thailand and its manufacturing would outcome in Point developing ammonium sulphate which is also utilized by farmers as an artificial fertiliser for alkaline soils.