Strategic Expansion to Meet Rising Demand
Ducol Organics & Colours Ltd has officially commissioned its second production line at the Mahad facility, marking a significant milestone in its capacity expansion strategy. This move is part of the company’s broader vision to enhance operational efficiency, diversify its product portfolio, and meet growing demand across domestic and international markets.
The new line is dedicated to dry dispersion and bottling of universal strainers, complementing the existing infrastructure and enabling higher throughput. With this addition, Ducol aims to strengthen its position in the pigment dispersion segment and cater to evolving customer requirements with greater agility.
Key Highlights from the Commissioning
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The second production line at Mahad is now fully operational, focusing on dry dispersion and universal strainer bottling
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This expansion follows the successful commercialization of the first line earlier this year
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The Mahad facility is now equipped to handle multiple production lines, offering scalability for future growth
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The new line is expected to improve economies of scale and reduce turnaround times for high-demand products
Operational Impact and Efficiency Gains
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The commissioning is projected to boost overall production capacity by 20–25% over the next two quarters
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Enhanced automation and process optimization are expected to reduce energy consumption and material wastage
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The facility’s layout has been restructured to streamline logistics and minimize inter-process delays
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Strategic cost control initiatives implemented alongside the expansion are already reflecting in improved EBITDA margins
Financial Performance and Growth Indicators
For H1 FY25, Ducol reported revenue from operations of Rs. 38.58 crore, up 2.69% year-on-year
EBITDA surged 53.34% to Rs. 4.40 crore, with margins improving by 378 basis points to 11.42%
Profit after tax stood at Rs. 2.64 crore, marking a 45.45% increase compared to the same period last year
The company’s balance sheet remains robust, with total assets rising to Rs. 105.20 crore as of September 2024
Market Outlook and Portfolio Diversification
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Ducol is actively expanding its product portfolio to include universal strainers, master batches, and customized pigment dispersions
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The company has added JSW Paints and HUL as new clients, signaling strong market acceptance of its offerings
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Export volumes to regions like East Africa, China, and Bangladesh are expected to rise with the new line’s output
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The pigment dispersion market is projected to grow at a CAGR of 5.8% globally, offering ample headroom for Ducol’s expansion
Leadership Commentary and Strategic Vision
Managing Director Aamer Ahmed Farid emphasized the importance of this milestone: “The second line at Mahad is a testament to our commitment to operational excellence and customer-centric innovation. We are confident that this expansion will unlock new opportunities and reinforce our leadership in the pigment dispersion space.”
The company is also exploring additional growth avenues, including partnerships in the Middle East and further capacity additions at its Taloja units. With a strong focus on R&D and sustainability, Ducol is positioning itself as a future-ready player in the chemical manufacturing sector.
Closing Insight
Ducol Organics & Colours Ltd is not just scaling up—it’s evolving. The commissioning of the second production line at Mahad signals a new chapter in its growth story, driven by innovation, efficiency, and strategic foresight. As demand for high-performance pigment dispersions continues to rise, Ducol is well-poised to deliver value across industries and geographies.
Source: Ducol Organics & Colours Ltd – Investor Presentation, MarketScreene, ducol.com
