By Express News Service

KOCHI: Public sector Fertilizers and Chemicals Travancore (FACT) on Monday said it has restarted its caprolactam production, which is expected to add about Rs 700 crore per annum to the turnover of the company.

Caprolactam is the raw material for the production of Nylon-6. In India, caprolactam is produced only by FACT and Gujarat State Fertilizers & Chemicals Limited (GSFC). A release by FACT said the annual capacity of FACT’s caprolactam plant is 50,000 tonnes. “The domestic demand for the product is 1.2-1.3 lakh tonnes per year.

The manufacture of 50,000 MT of caprolactam will also result in the production of 2.25 lakh MT of ammonium sulphate fertilizer. With the restart of the production of caprolactam in FACT with LNG as major feedstock, FACT caprolactam will be a key import substitution, in line with Prime Minister’s vision of ‘Atmanirbhar Bharat’,” the release said.

FACT said it is confident of selling most of the products in the domestic market considering the reputation it enjoys for its quality products.

“It is expected that the resumption of caprolactam production shall add about Rs 700 crore per annum to the turnover of the company,” it said. The Udyogamandal-based FACT’s caprolactam plant has been shut since 2013 as the higher price of the feedstock natural gas made the unit unviable.

The stock price of FACT has risen from Rs 45.9 apiece to Rs 124 apiece in the last 12 months, a rise of 170%.