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GSFC to set up 100,000 ton caprolactam plant in India
22
Dec '11
Gujarat State Fertilizers & Chemicals Ltd. (GSFC) will be setting up a new caprolactam (CPL) plant in the port town of Dahej in Bharuch district of the west Indian State of Gujarat.

The new plant will have an annual capacity to produce 100,000 tons of CPL, which is used as a raw material in the manufacturing of nylon yarn.

The new plant will be part of an integrated fertilizer and petrochemicals complex that will be established by GSFC at a cost of Rs. 70 billion (US$ 1.29 billion).

In 2009-10, GSFC produced 61,800 tons of CPL, accounting for 60 percent of market share.

GSFC has an operating margin of around 27 percent compared to 15 percent margins of companies like Tata Chemicals and Coromandel International.

The company has a higher operating margin due to its comparative advantage of having an integrated complex that enables it to manufacture the chemicals at cost-effective prices.

Fibre2fashion News Desk - India

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