SPIC scouts for M&A in domestic and overseas markets

Southern Petrochemical Industries Corp. Ltd. (SPIC) group has drawn up a ₹1,900 crore expansion plan, is scouting for mergers and acquisitions and plans to raise more debt, said a top company official.

Southern Petrochemical Industries Corp. Ltd. (SPIC) group has drawn up a ₹1,900 crore expansion plan, is scouting for mergers and acquisitions and plans to raise more debt, said a top company official.

“In CY24, we are planning to expand through brownfield projects. The investments may not be huge, but are sustainable and realistic ones,” said Chairman Ashwin C Muthiah in an interview.

As per the proposed plan, SPIC will earmark ₹970 crore to revamp its existing urea plant, augment capacity, and establish a 150 tonnes per day green ammonia plant.

Greenstar Fertilizers is set to invest ₹640 crore in a water-soluble fertilizer (WSF) mixing plant in Chennai, a 2,500 tonnes per annum sulphuric acid plant, and the refurbishment of DAP-I and II plants in Thoothukudi.

Tuticorin Alkali Chemicals and Fertilizers will allocate ₹290 crore to establish a soda ash and ammonium chloride plant in Thoothukudi.

“This investment marks the second WSF facility, following the inauguration of the first plant in Thoothukudi in November, which is entirely operated by women employees,” he said adding that these expansions would be met entirely through internal accruals and bank borrowings.

“Right now, SPIC group is more equity driven than debt. As we grow, we need more debt funds. We are a zero-debt company and are planning to raise short term and long-term debts to increase the balance between the two and provide sustainable return to our stakeholders,” he said.