Supreme Petrochem Commissions EPS Phase II Expansion, Capacity Rises to 1,15,000 TPA

Supreme Petrochem Ltd (NSE: SPLPETRO / BSE: 500405), India's largest producer of Polystyrene, has reached a significant operational milestone. The company announced the successful commissioning of its Expandable Polystyrene (EPS) Phase II expansion project at its Amdoshi Plant in Nagothane, Maharashtra.

This expansion substantially strengthens the company's manufacturing footprint in the high-demand polymers segment.

Capacity and Financial Highlights

The Phase II project adds significant volume to the company's existing output, aimed at capturing a larger share of the industrial packaging and construction markets.

Capacity Enhancement: The total production capacity for EPS has increased from 85,000 TPA (Tons Per Annum) to 1,15,000 TPA.

Capacity Addition: The specific addition from this phase is 30,000 M.T. per year.

Project Investment: The expansion was completed with an investment of ₹54 Crores.

Funding: The entire project was financed through internal accruals, demonstrating the company's strong cash position and debt-free growth strategy.

The expansion is strategically timed to address the rising demand in three critical sectors:

Packaging: Increasing need for protective packaging in the e-commerce and electronics sectors.

Construction: Growing use of EPS in insulation and lightweight building materials.

Cold Supply Chain: High demand for temperature-controlled storage and transport solutions for the pharmaceutical and food industries.

Prior to this expansion, the company was utilizing approximately 75% of its existing capacity. The newly commissioned units allow Supreme Petrochem to scale its operations seamlessly as market demand continues to grow.

Source : Equity Bulls

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