Dynemic Products

Hi all

As per the company’s announcement (https://www.bseindia.com/xml-data/corpfiling/AttachLive/ed04672e-28f7-4228-82c1-97fb1478cd98.pdf), capex of INR 150 Cr is expended towards a capacity of 2760 MT.

Couple of questions:

  1. CWIP as per Q4FY21 results is INR 194 Cr - so what is the status of the remaining INR 44 Cr?
  2. Is this 2760 MT capacity for food colours only (i.e. no intermediates).
  3. As per Sahil’s post above (post 113), Dynemic’s current food color capacity is 2950 MT - so effectively, the company is doubling its food colour capacity by investing 150 Cr? Current Gross Block is 34 Cr - so is the company investing 4-5x current Gross Block just to double its capacity? I presume not, suggesting a good chunk of INR 150 Cr is going into intermediates which is not reflected in the 2760 MT capacity increase.

Would really appreciate if you can help reconcile the current capacity + realisation numbers to the capex and upcoming capacity + realisations.

Edit - found a few answers based on the other thread which has a lot of info.

So total Capex is being used to double the food color capacity plus manufacture intermediates. Based on the company announcement, only the FDC manufacturing has gone live. Within the capacity for intermediates, 60 pct would be sold out to external third parties while balance would be for captive use. Appears quite a few of these intermediates are not commodity in nature, but it remains to be seen if the company can actually sell these products.

Disc - invested.

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