Coastal Corporation shares rise about 3% as trial production begins at its new plant
Coastal Corporation Ltd announced trial production of its new plant i.e. Unit III at Kakinada SEZ on 05 February 2022 and is now fully ready for commissioning.
In accordance with the regulatory filing, CAPEX of Rs70 crore has been invested by the Company in Unit III. The new plant has a production capacity of 35 MTPD. This installation is a completely integrated installation. Trial production starts on April 05, 2022. Commercial production will start in the next 10-15 days.
Unit III will increase the company’s value-added sourcing to various parts of the globe. The new plant will be an important base for expanding global sales in the future, the company said.
This development is part of the Company’s commitment to promote sustainable growth while creating employment opportunities in the region. This added capacity will allow us to expand our footprint and ensure sufficient and timely supplies, thereby improving supply chain efficiency.
The company had also earlier announced a DC solar power plant of around 3.6 MW in Daleshwaram village, Kanchili Mandal, Srikakulam with a Capex of INR 14 Crore. The project is expected to start next week and the company has received approval from the Chief Electrical Inspector of Andhra Pradesh to the Government (APCEIG) for captive consumption and the company would get credit on the units consumed at the unit-I, II and III to the extent of the units produced at the solar plant.
This initiative to move towards renewable energies and reduce the carbon footprint will also reduce the cost of electricity and the Company’s dependence on APEPDCL.
At around 10:22 am, Coastal Corporation was trading at Rs409.85 each, up Rs11.2 or 2.81% on Sensex.