Prasol Chemicals expects long-term revenue potential of around Rs 3,200 crore as capacity utilisation improves, company executives said on Tuesday.

The IPO itself is split into two parts: a fresh issue worth around Rs 80 crore and an offer for sale worth Rs 420 crore from existing shareholders.

Chairman Nishith Shah and Joint Managing Director Dhaval Parikh said the company still has plenty of room to grow using its current assets before it needs to invest in a fresh round of expansion.

Right now, Prasol operates at roughly 44% capacity utilisation. That leaves significant headroom for higher production without major new spending.

Shah explained that the company typically starts planning expansion once a plant hits 80% utilisation, rather than waiting until it’s completely maxed out.

To support future growth, Prasol has already secured 20 to 25 acres of extra land next to its existing plants in Mahad and Khopoli.

On funding, Shah said the company has enough internal cash generation to pay for expansion without needing to borrow. Margins are also expected to improve going forward.

Prasol converts acetone into higher-value specialty chemical products instead of simply distributing them, and this shift toward manufacturing carries better profitability. As utilisation rises over time, Shah expects margins to expand alongside it.

On the product side, Parikh said Prasol focuses on specialised chemical formulations rather than mass-market commodities, supplying industries like agrochemicals, pharmaceuticals, personal care and lubricants.

He noted that global players such as Arkema, Solvay, Lubrizol and Chevron are among its competitors, though no single company matches Prasol’s entire product range.

One area to watch is raw material sourcing. Prasol currently imports about 70% of its acetone needs, while phosphorus is entirely imported.

Shah said domestic acetone supply in India is expected to improve as new production capacity comes online, which should help going forward.

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