Patel Chem Specialities Ltd, which makes pharmaceutical excipients and specialty chemicals, has completed its second expansion at its Talod plant in Gujarat. Annual capacity rises from 720 MT to 4,500 MT, a 6.25 fold jump.
Trial batches are under way and commercial production should follow shortly. The expansion cost about ₹20 crore, funded by bank loans and internal accruals. At full utilisation, the company expects the plant to bring in ₹85 crore to ₹100 crore a year.
Its products are mostly cellulose and starch based: sodium carboxymethyl cellulose, microcrystalline cellulose, sodium starch glycolate and croscarmellose sodium. It also makes the intermediate sodium monochloroacetate. These go into pharmaceutical and nutraceutical formulations, and the main raw materials are monochloroacetic acid, soda ash and starch.
Managing Director Bhupesh Patel said the extra capacity will help the company meet rising demand and deliver to customers faster, and that it is ready to use the plant once commercial production starts.
Revenue from operations grew 30.6 percent to ₹137.26 crore in FY26. Profit after tax rose to ₹12.55 crore from ₹10.57 crore, though the EBITDA margin slipped to 13.58 percent from 14.97 percent. The company is also building a plant at Indrad in Mehsana district for croscarmellose sodium, sodium starch glycolate and calcium carboxymethyl cellulose, with a planned capacity of 6,012 MTPA.
Market Research Outlook: Superdisintegrants like croscarmellose sodium and sodium starch glycolate are a steady import substitution play as India makes more generic medicines. The new capacity is big next to Patel Chem’s revenue, so the test is how quickly customer approvals turn trial batches into regular orders. Prices of soda ash and monochloroacetic acid will shape margins.
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