Asahi came out with an interesting press release.
Asahi.pdf (257.6 KB)
Asahi will use the proceeds of the land sale to reduce debt and capacity utilization of the plant has improved from 55% to 70%. The yellow line in Azo pigments has reached optimum utilization and a brownfield capex is being done to double the yellow line.
Along with this capex for the intermediates and api is ongoing. Overall management expects to reach 700-750cr turnover in next 2 years.
Aarti industries and Sudarshan Chemicals have both said in their conference call that the demand scenario for pigments is improving.
Asahi was struggling for the last two years after expanding capacities as the downcycle started. As demand improves margins should normalize and debt should reduce as there is no other capex plan.
Disclosure: invested
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