20 Microns Limited has announced a strategic capital expenditure (CAPEX) plan of ₹100 crore over the next 24 months to expand capacities, improve operational efficiencies, and accelerate growth. This investment will focus on capacity expansion in existing and new facilities, technology upgrades, value-added product development, asset-backed business development, and sustainability initiatives. The expansion is aligned with the company's long-term strategic initiatives, driven by rising demand, import substitution opportunities, and growing specialty mineral applications in sectors like paints, coatings, plastics, ceramics, and construction chemicals. The company plans to fund this investment through a mix of internal accruals and selective debt, aiming to maintain optimal leverage. With this capital infusion, 20 Microns projects an 18% annual revenue growth by the end of FY2029-30. The company also targets a yearly production of 1.08 lakh MT and 0.96 lakh MT in its Malaysian subsidiary by mid-FY2028. A newly formed JV with Sievert aims for a 25% year-on-year rise in production capacity, reaching 0.22 lakh MT by the end of FY2029. The planned Capex is expected to result in an 18% CAGR in revenue over the next three years, a 200-250 bps improvement in EBITDA margins, and ROCE strengthening to 18-20% in the medium term. The company aims to achieve over 20% market share in high-value products by FY2030. Furthermore, 15% of the Capex will be allocated towards sustainability, focusing on energy optimization, waste reduction, and eco-friendly solutions, which are expected to reduce energy costs by 5-8% and cut carbon emissions by 15% over the next three years.
