Dhanuka Agritech commences trial production at Dahej unit

The company has invested more than Rs 300 crore over a period of two years to set up Dahej unit.

Leading agrochemicals company Dhanuka Agritech Ltd. announced the commencement of trial production at its new plant in Dahej, Gujarat. Company’s  Dahej plant is a technical manufacturing plant that will provide raw material security and the benefit of backward integration in the form of lower raw material costs. The company has invested more than Rs 300 crore over a period of two years to set up the unit, Dhanuka Agritech mentioned in filing to the stock exchanges.

Brokerage firm Prabhudas Lilladher said in its research report dated August 2 that it expected nearly Rs 50 crore of revenue contribution from the technical plant at Dahej in 2023-24, with an initial operating loss due to lower utilisation.

Dhanuka Agritech had also said that declining prices of agrochemicals would have an impact on the company’s margins as the delayed onset of monsoons led to delayed sowing and increased agrochemical inventories.

The company has invested more than Rs