Dhanuka Agritech Limited approves Rs. 200 crore backward integration project

The board of directors of Dhanuka Agritech Limited (the company) in its meeting held on February 2, 2021 has discussed and approved the setting up of a plant for technical manufacturing of Pesticides, i.e., backward integration process, at Dahej, Gujarat.

The company has a plot of approx. 1,37,000 square meters at Dahej, Gujarat which was acquired in 2013.

The setting up of this unit will involve an investment outlay of approx. Rs. 200 crores initially, which will be managed from internal accruals of the company.

The setting up of the above unit will improve the company's position with other players for procuring the raw materials under the barter system. It will help the company to expand its market share and to open new avenues for the export of the company's products.

The company may explore in future for exports of intermediates to Japanese, American & European companies as per mutual agreement.

The complete project plan for setting up this unit should be finalized within the next 6 months.

Shares of DHANUKA AGRITECH LTD. was last trading in BSE at Rs.737.35 as compared to the previous close of Rs. 736.15. The total number of shares traded during the day was 15930 in over 851 trades.

The stock hit an intraday high of Rs. 748 and intraday low of 724.1. The net turnover during the day was Rs. 11770729.

Source : Equity Bulls

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