en.Wedoany.com Reported - Dai-ichi Karkaria Limited has announced an expansion of its alkoxylation project at its manufacturing site in Dahej, Gujarat, India. The plan is to double the plant's total alkoxylation capacity to 10,000 metric tons per year (MTPA) by adding 5,000 MTPA of new capacity. The project involves an investment of INR 100 million, which will be entirely funded through internal accruals to avoid incurring additional debt.
The primary driver for this expansion is the high capacity utilization rate of the existing alkoxylation unit, which is approaching 95%, leaving limited room for further production increases. By enhancing the manufacturing capabilities at the Dahej plant, Dai-ichi Karkaria aims to meet the growing demand from key end-user industries such as textiles and coatings. The company anticipates these sectors will drive a recovery in future demand, creating new growth opportunities for its alkoxylation products.
Regarding its financial strategy, Dai-ichi Karkaria stated that the INR 100 million investment will rely entirely on internal accruals, avoiding new debt. This approach helps protect the company's balance sheet and alleviates interest-related financial pressures during the current recovery cycle in the chemical industry.
Although weak global prices make the fiscal year 2026 challenging for the entire chemical industry, the company reported early signs of operational recovery in recent quarters. In the fourth quarter of FY2026, Dai-ichi Karkaria returned to profitability with a net profit of INR 0.9 million, compared to a net loss of INR 8.6 million in the previous quarter (Q3). Quarterly revenue grew by 8.35% sequentially, indicating stabilizing market conditions.
Looking at the full-year performance for FY2026, the company's consolidated sales were INR 1.61 billion, an 11.05% decline from INR 1.81 billion in FY2025, primarily attributed to weak global chemical prices and market challenges facing the industry. Despite these pressures, the company remains focused on shareholder returns. While reporting a consolidated net loss of INR 7.4 million for FY2026, it has recommended a final dividend of 15%, equivalent to INR 1.50 per share.
Through the Dahej expansion project, Dai-ichi Karkaria is positioning itself for growth opportunities as demand gradually recovers in the industrial and specialty chemicals sectors. According to a report by tradebrains.in, the company believes that expanding capacity while maintaining financial discipline will enhance its long-term competitiveness and support sustainable development in the evolving chemical market.
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