SRF Ltd is planning to invest Rs.3,500 crore over the next four years, 70% of which would go into its fast-growing chemicals business, to cater to rising global demand, MD Ashish Bharat Ram has been quoted as saying.
SRF has over the years shifted its focus away from technical textiles to chemicals, where it has witnessed a rapid revenue growth and fat operating margin, reports a business daily. SRF exports 90% of its chemicals and counts Syngenta, BASF, Bayer CropScience and other global majors as its clients. “The long-term story of growing on the chemicals side at 20-25% is something that I am fairly confident that we should be able to do at least for the next 3-4 years. As the base becomes bigger, the challenges of growing at 25% also become bigger. But for the next 3-4 years, one can do that,” Ashish Bharat Ram told the paper. SRF will use internal resources to fund the planned investment as the company generates about Rs.1,000 crore of free cash flows every year, he added.