Himadri Speciality Chemical Ltd plans to expand its speciality carbon black capacity in a brownfield expansion project in West Bengal, with an estimated investment of ₹220 crore.
According to the company’s official, the expansion is expected to meet the rising demand from Europe. The expansion, located at Singur in the Hooghly district and scheduled to be operational within the next 18 months, will be funded via internal accruals.
The official stated that the extra capacity of 70,000 tonnes per annum would increase the company’s speciality carbon black capacity to 1,30,000 tonnes per annum, raising the cumulative capacity to 2,50,000 tonnes from the current 1,80,000 tonnes.
Speciality-grade carbon black is widely used in pigment for products, such as coating, paints, toners and inks, commanding a considerable premium compared to regular-grade carbon black.
The CMD and CEO of Himadri Speciality Chemical Ltd, Anurag Choudhary, said, “We foresee a significant uptick in demand for speciality carbon black, especially with the impending ban on Russian carbon black imports into the European Union. The gradual increase in the proportion of high-margin speciality carbon black will undoubtedly enhance our profitability and diversify our product mix.”
He also added that exports currently contribute approximately 25% of their turnover and are anticipated to grow to 35% in the next three years.
As per the company, after the completion, the expansion will make it the largest speciality carbon black capacity at a single site in the world. Currently, Himadri Speciality Chemical has 7 manufacturing units in India.
Meanwhile, in Q4 FY 2024, the company reported a 49% increase in net profit, touching ₹115 crore compared to ₹77 crore in the same period last year.
Himadri Speciality Chemical Ltd is involved in the manufacturing of chemicals and carbon materials. It is the only company to manufacture advanced carbon material in India.
On April 29, 2024, the share price of Himadri Speciality Chemical Ltd opened at ₹380.00, touching the day’s high at ₹382.35, as of 10:14 AM on the NSE.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
