Shares of Kanoria Chemicals opened 6.3% higher on February 24 after the company announced the construction of a new formaldehyde plant with a capacity of 300 TPD (tons per day).

The company said that company will build the plant within GIDC’s existing facility in Ankleshwar, Gujarat, and employ the latest metal oxide-based technology.

The new capacity is expected to meet growing regional demand and export markets for industries such as engineered wood, textiles, agrochemicals and pharmaceuticals.

The investment aligns with the company’s “Vision 2030”, Ranjeet Singh, CEO of the chemicals business, said in a filing.

In Q3FY23, the company’s operating income rose 19% year-on-year to Rs 385 crore. Revenue for September 2022 quarter was Rs 362 crore.

The company’s net loss narrowed to Rs 1.3 crore from Rs 14 crore a year earlier. The net loss in Q2FY23 was Rs 11 crore.

Shares of the company have risen about 2% in the past year after falling 8% in the past month. At 10:11 am, Kanoria Chemicals traded 5.26% higher at Rs 128 on the National Stock Exchange.