Seya Industries Limited, Mumbai based emerging leader in Specialty chemicals industry, has entered into a Long-term export contract for Supply of one of its key products to a major Chinese Specialty Chemical Company. The supply contract is initially for a period of one year and of approximately USD 5 million. The contract is extendable for a period of 3(three) years with Total Value of upto USD 20 million. Seya has commenced the exports for the contract.
The Chinese market is a huge target potential for Seya's products. The maiden foray through this contract will open up the market potential in the medium term. The long-term contract would contribute to sustainable volume pick up and utilization of its existing capacity. As a part of this contract terms, the customer shall provide a certain advance to the company in instalments, which shall be adjusted against supplies in future.
Seya is one of India's leading producer of Benzene-based specialty chemical intermediates at a single location with fully backward and forward integrated product plants using cutting edge technology. The product is a part of Company's existing portfolio and the Company does not have to do any new capex.
Commenting on the performance Mr. Ashok Rajani, Chairman & Managing Director, Seya Industries Ltd said "We are very delighted with the commencement of long-term export contract for Supply of one of our key products to a major Chinese Specialty Chemical Company. This is in line with Company's strategy at bagging new market opportunities and strengthening its position into high margin product portfolio. The Company has apparently moved up in the value chain.
Overall in the Global Chemical industry, there has been shift in the manufacturing base from China to India due to varied issues China is going through. We believe the shift is more structural in nature and feel the opportunity in our segment is quite sizeable. Keeping this demand in mind, we have maiden foray through this contract into Chinese market and going ahead will be strengthening our presence in this market. This deal will boost our growth trajectory further."
Shares of SEYA INDUSTRIES LTD. was last trading in BSE at Rs.371.8 as compared to the previous close of Rs. 371.9. The total number of shares traded during the day was 2487 in over 52 trades.
The stock hit an intraday high of Rs. 379.9 and intraday low of 365.3. The net turnover during the day was Rs. 926222.