TGV SRACC to Expand its Existing Chlor-alkali and Chloromethane Capacity
The board of TGV SRAAC has granted the company's request to increase the capacity of its caustic soda and related liquid chlorine products by 270 MTs as well as by another 100 TPD for its chloromethane products.
The initiatives' projected project cost is INR 300 crore. The Board of Directors has also given its approval for the corporation to use internal accruals to pay for the project. The same was accepted by the company's board of directors at their meeting in the first week of December 2022.
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The company TGV SRAAC (formerly known as Sree Rayalaseema Alkalies and Allied Chemicals) manufactures castor derivatives, fatty acids, Chlor-alkali chemicals, and chloromethane.
In comparison to the prior year's turnover (gross), which was INR 98767 Lakhs, the current year's turnover (Gross) is INR 120950 Lakhs.
The caustic unit produced 171658 MT of Caustic Soda as opposed to 144675 MT the year prior, a 19% increase. Net sales for the current year are INR 66063 Lakhs, which represents a 46 percent growth over net sales of INR 45345 Lakhs for the prior year. In comparison to the previous year, when the potassium plant produced 15273 MTs of potassium hydroxide, it produced 13573 MTs of it this year, which was an 11% drop.
The current sales amount to INR 8160 Lakhs, a decline of 17 percent from the net sales of INR 9868 Lakhs for the previous year. The marketing needs of the two products, caustic soda, and caustic potash, determine the product mix.
In comparison to the previous year's production of 28840 MT, the Chloromethanes Plant has generated 39620 MT of chloromethanes for the current year, a significant jig of 37 percent. Chloromethanes' net sales for the current year are INR 13976 Lakhs. The previous year’s net sales were at INR 8627 lakhs representing an increase of 62 percent.
In contrast to the 7760 MT of oil processed in the prior year, the Castor Oil Plant has processed just 4763 MT of oil this year, a loss of 39%. The current year's net sales were INR 5186 Lakhs, a decline of 389 lakhs from the previous year's net sales of IN 7187 Lakhs. The price alterations of raw materials and final goods are primarily to blame for the disparity.
In contrast to 21874 MTs processed in the prior year, the fatty acid plant has processed 14672 MTs this year, facing a decline of 33%. This division's net sales have dropped from Rs. 15585 Lakhs to Rs. 10741 Lakhs, a 31% decline.
The price alterations of raw materials and final goods are primarily to blame for the disparity. Due to the Power Purchase Agreement (PPA) by KPTCL's expiration, Bellary Power Plant is not currently in use for commercial purposes. The Company is searching for other workable solutions, such as selling or relocating the Plant.
In the current year, the Ramagiri Wind Farm generated 26.61 lakh/kWh of power as opposed to 28.01 lakh/kwh in the previous year, which is a slight decline in percentage. The generated energy is transported to the company for internal usage by State Grid. The speed of the wind affects power production
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As per Procurement Resource, the company's request to boost the capacity of its caustic soda and associated liquid chlorine products by 270 MTs as well as by an additional 100 TPD for its chloromethane products was approved by the board of TGV SRAAC.
Projected project costs for the initiatives are 300 crore INR. The corporation may use internal accruals to fund the project with the Board of Directors consent. At their meeting in the first week of December 2022, the company's board of directors approved the same.