VINATI Organics, a Mumbai-based chemical manufacturer, is tripling its capacity of specialty chemicals that are widely used to make high grade polymers for the exploration industry, at a total cost of Rs 40 crore. “We will become the world’s second largest producer of 2-acrylamido 2 methylpropanesulfonic acid once our capacity triples to 12,000 tonnes by October this year,” said executive director, Vinati Saraf. The company will finance the expansion through a combination of a $6-million FCNR loan and through internal accruals.
The specialty chemical is the main raw material used to make water-soluble polymers for the enhanced oil recovery process in petroleum exploration and production. Demand in India for ATBS is limited and about 95% of the total production of the chemical is exported. Acrylonitrile and isobutylene are the key inputs for this chemical which are derivatives of petroleum crude, the price of which has shot up globally. “Our contract with clients are linked to the cost of raw materials. Hence, higher costs can be transferred to customers,” said Ms Saraf.
On Friday, Vinati Organics said it will increase its product prices by Rs 25 per kg from August 1, due to a 25% rise in prices of raw materials such as toulene and propylene, potassium carbonate and also due to a rise in energy costs.
The company has already emerged as the world’s largest producer of isobutyl benzene, which is the key raw material in the manufacture of ibuprofen, a widely used anti-inflammatory drug. The total demand of ibuprofen is estimated at around 22,000 tonnes globally, translating into a consumption of around 17,000 tonnes of IBB. VOL’s IBB sales totalled 11000 tonnes or 65% of the global demand last year. Ibuprofen is mainly manufactured in India, China and the US.
The specialty chemical is the main raw material used to make water-soluble polymers for the enhanced oil recovery process in petroleum exploration and production. Demand in India for ATBS is limited and about 95% of the total production of the chemical is exported. Acrylonitrile and isobutylene are the key inputs for this chemical which are derivatives of petroleum crude, the price of which has shot up globally. “Our contract with clients are linked to the cost of raw materials. Hence, higher costs can be transferred to customers,” said Ms Saraf.
On Friday, Vinati Organics said it will increase its product prices by Rs 25 per kg from August 1, due to a 25% rise in prices of raw materials such as toulene and propylene, potassium carbonate and also due to a rise in energy costs.
The company has already emerged as the world’s largest producer of isobutyl benzene, which is the key raw material in the manufacture of ibuprofen, a widely used anti-inflammatory drug. The total demand of ibuprofen is estimated at around 22,000 tonnes globally, translating into a consumption of around 17,000 tonnes of IBB. VOL’s IBB sales totalled 11000 tonnes or 65% of the global demand last year. Ibuprofen is mainly manufactured in India, China and the US.
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