Expansion Boost Himadri Speciality Invests ₹220 Cr in Carbon Black

29 Apr, 2024

Expansion Boost Himadri Speciality Invests ₹220 Cr in Carbon Black

Himadri Speciality Chemical Ltd, headquartered in Kolkata, is embarking on a significant expansion of its speciality carbon black capacity through a brownfield project in West Bengal, investing an estimated Rs 220 crores, according to a company official's announcement on Sunday.

Once completed, this expansion will add 70,000 tonnes per annum to the company's speciality carbon black capacity, elevating it to 1.3 lakh tonnes per annum and bringing the cumulative capacity to 2.5 lakh tonnes, up from the current 1.8 lakh tonnes.

Anurag Choudhary, CMD & CEO of Himadri Speciality Chemical Ltd, anticipates a surge in demand for speciality carbon black and foresees enhanced profitability with a shift towards high-margin products. He expects exports, currently accounting for 25 per cent of turnover, to increase to 35 per cent over the next three years.

Upon completion, the expansion will position Himadri as the world's largest speciality carbon black capacity provider at a single site. The company presently operates seven manufacturing facilities across India, boasting a 92 per cent capacity utilization rate in FY23-24, reflecting robust demand.

Speciality-grade carbon black finds extensive applications in paints, coatings, inks, and toners, commanding premium pricing compared to regular-grade carbon black. Himadri's focus on speciality carbon black, particularly in energy storage applications, underscores its commitment to innovation and diversification. The company's strategic initiatives, including ventures into lithium-ion battery materials, underscore its forward-looking approach in aligning with emerging market trends and technologies.