Bodal Chemicals Ltd. expects to benefit from closure of dye manufacturing units in parts of China.
The closure has shifted demand from China to India, Mayur Padhya, chief financial officer of the specialty chemicals maker told BloombergQuint in an interview. That may lead to an improvement in domestic as well as export realisations, he added.
Shares of Bodal Chemicals today ended over 11 percent higher at Rs 148.90, after reports that the Guangzhou region in China is likely to close down pharmaceuticals, pesticide and dye intermediate projects in chemical parks.
Bodal Chemicals mainly manufactures two chemicals vinyl sulphone and H Acid that are used in making dyes. Product prices have been rising after reports of closure of units overseas, Padhya said. In 2017, vinyl sulphone prices had gone up to Rs 400 per kilogram, and in FY15 H Acid prices had gone up to even Rs 1,800, he said.
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