Paradeep Phosphates Limited has informed the Exchange about Commencement of commercial production of Sulphuric Acid Plant -D
PARADEEP · price
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Paradeep Phosphates has started commercial production at its new 1500 MTPD Sulphuric Acid Plant-D at the Paradeep facility in Odisha. This raises the company's total sulphuric acid capacity from 4200 MTPD to 5700 MTPD, a ~36% increase. The project cost approximately Rs. 510 Crores, funded through internal accruals and term loans. Existing capacity was already running at 96% utilization, indicating strong demand. The new plant is expected to reduce dependence on imported sulphuric acid, secure raw material supply for phosphoric acid and fertilizer production, and generate around 150 million units of non-fossil fuel energy per year from process waste heat.
Positive for shareholders — backward integration into a key raw material should lower input costs, improve operating margins, and reduce supply-chain risk. The 96% utilization of existing capacity suggests strong offtake, supporting the case for the expansion. However, the Rs. 510 Crore capex adds to debt and depreciation in the near term.