- 21 Mar 2023
- ICICIdirect Research
PCBL announces pre-commissioning trial run at greenfield project in Tamil Nadu
PCBL - 138 Change: -0.05 (-0.04 %)News: In a regulatory exchange filing, the company has informed about pre – commissioning trial run of first phase (63,000 MT) of 147,000 MT greenfield carbon black manufacturing facility in the state of Tamil Nadu being set-up by PCBL (TN) Limited, a wholly owned subsidiary of the company
Views: The capex spend for the said project is pegged at ~₹700-800 crore. In our opinion the commissioning of this new plant is a tad delayed vs. the earlier communication shared by the company in the past. Nevertheless with some slowdown in export volumes late commissioning did not amounted to any loss of volumes. With domestic tyre space witnessing healthy demand prospects and limited supply from China in international markets in the carbon black domain, post commissioning of this greenfield plant, we expect company to report healthy double digit volume growth starting FY24E
Impact: Neutral