Chemieorganic was started in as a partnership firm with a manufacturing facility to manufacture various isomers of chlorobenzenes at the Gujarat Industrial Development Corporation (GIDC) industrial estate at Vapi, District Valsad in Gujarat state. The present management joined hands with the old one in and tool over completely in . After various changes were made in the manufacturing process to increase manufacturing capacities and input-output yields. As a result of implementing these the company immediately came into a profit situation from a loss-making one before.
The above private limited company under the same management and family shareholding was formed in and subsequently it acquired land at the GIDC estate at Jhagadia, District Bharuch. The Jhagadia plant was setup to make the same products of the Vapi unit. Following were the reasons for shifting locations:
- To get backward area benefits, so as to be one-up on completion
- To save on handling & transportation of a major raw material viz. Chlorine, since normally kilos of Chlorine is packed and transported in cylinders in liquefied form whereas as Jhagadia, the company was able to get chlorine in gaseous form by pipeline from neighboring merchant chlorine manufacturing plant. Apart from the handling and transport cost savings, there were also savings made of avoidance of energy-costs in converting liquefied chlorine to gaseous chlorine, since chlorine in gaseous form is needed in the manufacturing process.
The Jhagadia plant was commissioned in . The Vapi facility was closed in to facilitate single-point activities and who-ever workmen wanted to shift to Jhagadia were transferred and the balance were paid their statutory dues and additional amounts. In year, the company set-up a plant to manufacture downstream products. The company is presently expanding capacities of the existing plants.