Outlooks From Credit Rating Report
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Capacity enhancement of the plant at Ranchi, Jharkhand, which shall enhance its overall capacity in India by around 25% to 291,000 tonnes per annum (TPA).
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UML also plans to enhance capacity at its Thailand plant by 8% to 39,000TPA.
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The capacity expansion plan also includes adding new high-value,high-margin niche products to UML’s portfolio having a significant demand in the export market. Thus, the expanded capacities shall be more EBITDA-accretive than the existing operations once fully operational.
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Most of the production is order-based, UML has been able to pass on volatility in raw material prices, albeit with a lag, as reflected in its range-bound EBITDA per tonne.
Disc: - Invested and I am No Reg. Advisor and Not an Recommendation.