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Informist, Friday, Mar. 7, 2025

--Godrej Industries official: Aim to double chemicals division revenue in 3-4 yrs

--Godrej Industries official: Actively looking to buy cos in chemical sector

--Godrej Industries official: Committed to complete INR 6-bln capex by 2027

--Godrej Industries official: See no impact of US tariffs on chemicals unit

AHMEDABAD – Godrej Industries Ltd. is looking to double the revenue of its chemicals division in the coming 3-4 years, Vishal Sharma, executive director and chief executive officer-chemicals, said Friday. The company hopes to achieve this on the planned INR 6-billion capital expenditure that it is committed to complete by 2026-27 (Apr-Mar).

The chemicals division's revenue for the first nine months of 2024-25 (Apr-Mar) is already around INR 25 billion for the whole of FY24, Sharma said. He was speaking at the launch of a forum, called Samagam, for small and medium sized chemical units to interact.

The chemicals division has one plant at Valia in Gujarat and another at Ambarnath in Maharashtra. The Gujarat plant contributes nearly 65% to the company's revenue and Maharashtra unit the rest. Of the INR 6 billion capital expenditure, the company plans to spend INR 5 billion on expanding the production capacity of its Valia plant to 275,000 tonnes per annum by FY27 from 200,000 tonnes at present.

"We have 200 acres of land and can expand this further by 20% more at an appropriate time," Sharma added.

The company is also looking to expand its geographical reach and achieve product innovation by way of inorganic growth. Sharma said the company was "actively" looking for further acquisitions. "We are Godrej so we have a big war chest (for acquisitions) and we have not set any ticket size for acquisitions," he said, adding that they would not acquire any company just to increase their market share.

Godrej Industries had acquired the ethoxylation unit of Shree Vallabh Chemicals in Kheda, Gujarat, for INR 500 million. Four months ago, the company bought Goa's food additives and emulsifier maker Savannah Surfactants for INR 760 million. It seeks to close acquisition by May.

Sharma said the company exports products to nearly 60 countries and that they account for nearly 30% of the chemical division's total revenue. Of the total exports, the US accounts for 10-15% and any impact of tariff changes could be "negligible" in overall earnings of the company and the group.

He said the company could look at markets in South Korea, Brazil, and Chile to compensate for any fall in revenue due to imposition of tariffs by the US.

At 1526 IST, shares of Godrej Industries were up 0.7% at INR 1,107.75 on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Sunil Raghu

Edited by Ashish Shirke

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