Vinati Organics' board approved an aggregate capital expenditure plan of approximately ₹500 crore on Oct. 30, covering the company and its wholly owned subsidiary Veeral Organics Private Limited. All proposed projects are greenfield and will be funded through internal accruals.
The new specialty chemicals target applications in resins, fragrances and personal care, water treatment solutions and oilfield applications, with scope to expand into adjacent product segments based on market demand. Commissioning is targeted within two years of the announcement.
The move came as Vinati reported a 28.1% year-on-year decline in net profit to ₹78.4 crore for the quarter ended September, against ₹109 crore a year earlier. Operating margins compressed sharply as higher input costs weighed on earnings.
Vinati Organics, based in Mumbai, produces isobutylbenzene, ATBS and IBB derivatives at facilities in Maharashtra and supplies pharmaceutical, oilfield, water treatment and polymer customers globally. The company said no debt or equity dilution was disclosed in the filing.
