An ISO 9001 : 2015 Company

bHANsAli ENGiNEERiNG polyMERs liMiTEd

CIN: L27100MH1984PLC032637
Registered Office : 401, 4th Floor, Peninsula Heights, C. D. Barfiwala Road, Andheri (West), Mumbai - 400 058.
Tel. : (91-22) 2621 6060/61/62/63/64 •Fax: (91-22) 2621 6077 •E-mail: [email protected] •Website : www.bhansaliabs.com

Detailed disclosure on expansion project/ capacity a ddit ion

Sr. No. Particulars Details

1. Existin g actual capacity a . HRG - 15,000 TPA at Satn oor Plant
b. Captive / Sa leable SAN - 50,00 0 TPA a t
Abu Road Plant
c . ABS Compounding - 130,000 TPA at Abu
Road Plant

2. Existing actual capa city 90% of (a ) and (b) above for FY 2020 -21.
utilization
ABS compounding capacity is u tilized based
on actual availa b ility of HRG and captive SAN.
Company h as insta lled additional
compounding capacity envisaging import of
a dditional HRG and SAN. However , due to
Covid-19 pandemic, the Company was u n able
to import HRG and SAN for utilizing additional
compounding capacity.
3. Proposed exp ansion cap a city Proposed Additional capac it y
at Compa n y's exis ting plants. a . HRG - 35, 000 TPA at Satnoor Plan t
b. Captive SAN - 10 0 ,000 TPA at Abu Road
Pla nt
c . ABS Com pounding - 70 ,000 TPA at Abu
Roa d Plant

Overall capacity post expansion

a . HRG - 50,000 TPA
b . Captive SAN - 1,50,000 TPA
c. ABS Com pounding - 2 ,00,000 TPA

The above will lead to overall ABS production

capacity to 2 00,0 00 TPA.

4. Period within which the Tenta tively by December 2 024 .

proposed capa city is to be
a dded
5. Investment required Approx im ately Rs .50 0 crores.

6. Mode of financing Through Reserves a nd Surplus.

7. Rationale To cater to the fu ture growth in domestic

a nd / or in terna tional market.

Satnoor Plant : Bhansali Nagar, Taluka - Sausar, Dist. Chhindwara, Madhya Pradesh - 480 108.
Tel.: (07165) 226376-79 • Fax: (07165) 226380 I 81 • E-mail: beplchw @bhansaliabs.com
Abu Road Plant : Plot No. SP-138-143, Ambaji Industrial Area, Abu Road, Dist. Sirohi (Rajasthan) - 307 026
Tel. : (02974) 226781 /82/83/84 • Fax: (02974) 226737 •E-mail : [email protected]
 •~ CB--022-MS
An ISO 9001 : 2015 Company

~r b~ANsAli ENGiNEERiNG polyMERs liMiTEd

CIN : L271OOMH1984PLC032637
Registered Office : 401, 4th Floor, Peninsula Heights, C. D. Barfiwala Road, Andheri (West), Mumbai - 400 058.
Tel.: {91 -22) 2621 6060/61 /62/63/64 •Fax: {91-22) 2621 6077 •E-mail: [email protected] •Website: www. bhansaliabs.com

Board Note for enhancing the overall ABS production capacity to 200,000 TPA at Company's
existing plants at Abu Road (Rajasthan) & Satnoor (Madhya Pradesh).

The Company's Management has continuously endeavored its best efforts to find the suitable land
parcel for port based Green Field ABS Expansion Project, as it has its own advantages, inter alia,
handling of the key raw materials through pipelines from liquid jetty to plant The Management
studied and visited various port locations and one such suitable land parcel was shortlisted at
Pipavav Port, but the same had issues, so far as 'Clear Title' was concerned.

The Company Management has been simultaneously evaluating the Brown Field ABS Expansion
Project at its existing locations. The Company has received proposals from various ABS Technology
providers, one of them being Toyo Engineering (Toyo), an Engineering Consultancy & Contracting
Company, which is a perfect blend of Japanese technology and management practices with Indian
expertise and ingenuity. Toyo has its own 'Continuous Bulk SAN Line Licensed technology' which
has been applied in various plants around the World (capacity exceeding approximately 1200 ,000
TPA). The proposal received from Toyo is based on the biggest Bulk San line set-up in China, being
steady and operational for last more than 12 years. Further, the Company is also in receipt of the
proposal from Nippon A&L Inc, (Joint Venture capitalized by Sumitomo Chemical Co Ltd. and
Mitsui Chemicals, Inc.,) for Ultra-Modern latest High Rubber Graft (HRG) technology with fu ll
automation. The Company's Satnoor plant was set up in 1990, based on ABS technology from
Nippon A&L Inc. (Sumitomo Chemical Group).

The Environmental Clearance for 50,000 TPA HRG (for captive consumption to manufacture
200,000 TPA ABS) at Satnoor Plant and 130,000 TPA ABS Production at Abu Road Plant has
already been received. The Company is in the process of obtaining Environmental Clearance for
increasing the ABS capacity from 130,000 TPA to 200,000 TPA at Abu Road Plant (Rajasthan),
which shall be received shortly.

Following are the points, summarized post in-depth analysis and critical evaluation of the Port
based Green Field ABS Expansion Project viz-a-viz Brown Field ABS Expansion Project a t existing
plants:

[1) Green Field ABS Expansion Project:

a) Finding suitable land parcel with Clear Title within a radius of 5 to 10 Kms. from the Port
liquid jetty in itself is a challenge and time consuming;
b) Project cost to be approx. between Rs. 1500 to Rs.2000 Crores;
c) Project implementation may take approx. 5 to 6 years.

[2] Brown Field ABS Expansion Project:

a) Sufficient land already available at existing locations (Expansion up to 400,000 TPA can be
easily carried out in fu ture, without new land acquisition);
b) Requisite Infrastructure facilities already available at both the existing locations (i.e. full-
fledged Research and Development Centre, Utilities, Tank Farm Area, Employee Colony,
School Facilities, Road & Transportation etc.) which will play an important role in low Capex
of Brown Field ABS Expansion ;
c) Environmental Clearance at existing plants are in place which will help in expeditin g the
Project implementation tentatively by December 2024;
d) Capex requirement will be approx. Rs.500 Crores.

Satnoor Plant : Bhansali Nagar, Taluka - Sausar, Dist. Chhindwara, Madhya Pradesh - 480 108.
Tel. : (07165) 226376-79 • Fax : (07165) 226380 I 81 • E-mail : beplchw @bhansaliabs.com
Abu Road Plant : Plot No. SP-138-143, Ambaji Industrial Area, Abu Road, Dist. Sirohi (Rajasthan) - 307 026
Tel. : (02974) 226781 /82/83/84 •Fax: (02974) 226737 •E-mail : [email protected]
 • A CB--022-MS
An ISO 9001 : 2015 Company

b~ANsAli ENGiNEERiNG polyMERs liMiTEd

CIN: L27100MH1984PLC032637
Registered Office : 401 , 4th Floor, Peninsula Heights, C. D. Barfiwala Road, Andheri (West) , Mumbai - 400 058.
Tel. : (91 -22) 2621 6060/61 /62/63/64 •Fax: (91-22) 2621 6077 •E-mail : [email protected] • Website: www.bhansaliabs.com

Considering above, the management is of strong belief that optin g for Brown Field ABS Expansion
Project would be in the best interest of the Company, as the same will be fu nded through Reserves
& Surplus and the Company will continue maintaining its "Zero D ebt Statu s" in fu ture a s well.

Accordingly, the Management proposes to the Board of Directors, to conside r a n d accord its
approval for the Brown Field ABS Expansion Project at the Company's existin g pla n ts a t Abu Road
(Rajasthan) & Satnoor (Madhya Pradesh) for enha ncing overall ABS produ c tion capacity to 20 0,0 00
TPA with approx. Capex of Rs.500 Crore, to be funded through Reserves & Su rplus which sh all be
implemented tentatively by December 2024.

Satnoor Plant : Bhansali Nagar, Taluka - Sausar, Dist. Chhindwara, Madhya Pradesh - 480 108.
Tel. : (07165) 226376-79 • Fax : (07165) 226380 I 81 • E-mail : [email protected]
Abu Road Plant : Plot No. SP-138-143, Ambaji Industrial Area, Abu Road, Dist. Sirohi (Rajasthan) - 307 026
Tel. : (02974) 226781 /82/83/84 •Fax: (02974) 226737 •E-mail : [email protected]