Chemfab Alkalis Limited has informed the Exchange regarding 'commissioning of the latest generation INEOS Electrolyser with the requisite consent and approval to operate the same replacing the existing 30-year-old 2nd-Generation UHDE Electrolyser and associated equipment to improve overall efficiency and optimise costs'.
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Chemfab Alkalis has commissioned a latest-generation INEOS Electrolyser to replace its 30-year-old 2nd-generation UHDE Electrolyser at its plant. The company invested approximately Rs. 57 Crores in this upgrade, funded entirely through internal accruals with no debt raised. The replacement is expected to improve overall operating efficiency, reliability, and optimise costs, with power savings kicking in from Q4 FY2025-26. The regulatory consent capacity remains unchanged at 180 tonnes per day, meaning this is an efficiency upgrade rather than a capacity expansion.
Positive for shareholders — the upgrade should support margin improvement through lower power costs and better reliability, all funded internally without straining the balance sheet. However, since production capacity stays at 180 tonnes/day, revenue upside may be limited; the benefit is mainly cost-side.