Thirumalai Chemicals to set up subsidiary in US, stock surges

The Board of Directors of Thirumalai Chemicals Limited has approved the proposal to set up a subsidiary for establishing and operating a Food Ingredients Manufacturing facility (including Malic and Fumaric Acid) in the US, with a capacity of 30,000 metric tons per year.

This investment is planned as the first phase of a long-term initiative and a major hub and will enable further growth in intermediates and fine chemicals based on local stocks and aimed at the US and EU markets.

Two years ago, the company had started long term initiatives of growth and modernisation. The first and major phase is nearing the end - the revamp in Phthalic Anhydride facility in Tamil Nadu has just been completed. This was a major project where large sections of all its aging plants have been completely replaced. In the last 18 months, the company has spent nearly Rs. 200 crores towards capital expenditure for the above long term initiative.

Now the company is moving towards having manufacturing facilities in 4 different locations in 3 countries – addressing varied geographies and derisking its businesses, enabling it to operate in the most advantageous locations and markets.

On Friday, the stock of Thirumalai Chemicals opened at Rs. 62 per share. During the day, it surged by 5.6 per cent to make intra-day high of Rs. 65.50. Later it got closed at Rs. 64.10.