Chemplast Sanmar Ltd., is expecting a fourfold jump in revenue to ₹1,000 crore from the Custom Manufactured Chemicals Division (CMCD) in the next three years, Managing Director Ramkumar Shankar said.

During September, Chemplast commissioned Phase 1 of the new multi-purpose block with an investment of about ₹270 crore. Phase 2 is on track to be completed in FY25, he said in his message to the shareholders.

“Having secured two Letters of Intent (LoI) this year along with a robust pipeline of additional products, we anticipate reaching peak utilisation of this capacity within the next 2 to 3 years,” he said.

The total installed capacity of CMCD at Berigai in Krishnagiri District of Tamil Nadu is 3,068 tonne per annum. This division entails the production of unique, non-commercially available molecules tailored exclusively for a specific company in pharma and agrochemical markets.

“With steady state capacity utilisation of the new multi-purpose production block, we foresee reaching ₹1,000 crore in revenue from this business within the next three years,” he said.

Chemplast Chairman Vijay Sankar said they recently signed the fourth LoI with an agrochemical innovator for an advanced intermediate for a new active ingredient. This will be manufactured in the new capacity that we will be commissioning in 2024-25.

“The product pipeline continues to be very healthy. Chemplast commercialised three new products this year, and a number of products are under various stages of development,” he said.

Talking about CMCD expansion, Chemplast CFO N. Muralidharan said it was a part of their broader strategy to enhance production capacity and cater to the expanding product pipeline. Besides, the investment in CMCD is vital for capturing a larger market share and boosting competitive edge.