Lords Chloro Alkali Limited has informed the Exchange about Capacity addition
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Lords Chloro Alkali's board has approved doubling its Chlorinated Paraffin Wax (CPW) manufacturing capacity from 50 TPD to 100 TPD at its Rajasthan facility, where current utilization is over 80%. The expansion is expected to be completed by the end of FY 2025-26 and will cost around Rs. 30 crore, to be funded through internal accruals and sanctioned credit lines (no fresh equity or major debt). Management cites growing demand, economies of scale, better fixed cost absorption, and utilization of chlorine as the rationale. Separately, the board approved a related party transaction — a lease with Cygnet Projects Pvt. Ltd for a ~9,500 sq ft property in New Delhi at Rs. 8 lakh per month, to serve as a residence for Whole Time Director Mr. Madhav Dhir and as an office/guest house. The transaction is at arm's length and the lessor shares common directors with the company.
The 100% capacity expansion signals management's confidence in rising demand for CPW and should support margin expansion through better cost absorption. Since the capex is self-funded, shareholders are unlikely to face dilution or material debt burden, but timely execution by FY 2025-26 end remains the key thing to watch. The related party lease is small relative to the business and is at arm's length, so limited impact on shareholders.