Atul Limited Approves ₹167 Crore Capex to Expand Herbicide Manufacturing Capacity

BY ADMIN • FILED 24 Jul 2026, 10:49 PM

Atul Limited, one of India’s leading integrated chemical companies, has approved a ₹167 crore capital expenditure (capex) plan to expand its agrochemical business by setting up new manufacturing facilities for specialty herbicides. The proposal was approved by the company’s Board of Directors at its meeting held on July 24, 2026.

The investment will strengthen Atul’s downstream chemical portfolio and enhance its presence in the growing agrochemical market through the production of value-added herbicides.

Key Highlights of the Capex Project

The expansion project involves the establishment of new manufacturing facilities for two specialty herbicides.

Proposed Capacity

Mecoprop-P: 1,000 tonnes per annum (TPA)
2-Methyl-4-Chlorophenoxyacetic Acid (MCPA): 750 TPA

These products will represent new additions to Atul’s manufacturing portfolio, as the company currently has no existing production capacity for either herbicide.

Investment Details

Total Capital Expenditure: ₹167 crore
Excludes: Working capital requirements and GST.
Funding Source: Entirely through internal accruals.
Project Completion Timeline: Approximately 67 weeks.

Strengthening the Agrochemical Portfolio

The new manufacturing facilities are expected to enhance Atul’s position in the specialty herbicide segment by expanding its range of downstream agrochemical products.

The investment will enable the company to:

Diversify its agrochemical product portfolio.
Increase its presence in the phenoxy herbicides market.
Expand value-added downstream manufacturing.
Improve integration across its chemical value chain.

Leveraging Existing Manufacturing Strengths

The company plans to manufacture these herbicides using existing intermediate products, including:

o-Cresol
Monochloroacetic Acid (MCA)

Leveraging its existing manufacturing capabilities and feedstock availability is expected to improve operational efficiency and enhance value addition across the production chain.

Strong Financial Position Supports Expansion

Atul will finance the entire project through internal accruals, demonstrating the company’s strong financial position and healthy cash generation capabilities.

By avoiding external borrowings, the company expects to:

Maintain a conservative capital structure.
Preserve financial flexibility.
Support long-term sustainable growth without increasing debt.

Strategic Outlook

The expansion aligns with Atul’s long-term strategy of strengthening its specialty chemicals and agrochemicals portfolio.

The company expects the project to:

Enhance its competitive position in the agrochemical industry.
Increase revenue from value-added products.
Improve long-term operating margins.
Support future growth in domestic and international markets.

With growing global demand for crop protection chemicals, the investment is expected to create new growth opportunities for the company over the coming years.