Chemplast Sanmar Ltd. has managed to lower its consolidated net loss to ₹49 crore for the quarter ending December 31, 2024, compared to ₹89 crore for the same period last year. The company’s revenue for the first nine months of FY25 reached ₹3,195 crore, marking an 11% year-on-year growth. This growth was primarily driven by better pricing and margins in the PVC business and a strong performance from its Custom Manufactured Chemicals Division (CMCD), according to Managing Director Ramkumar Shankar.
The Chennai-based manufacturer reported a 19% increase in consolidated revenue, reaching ₹1,058 crore in Q3, up from ₹888 crore in Q3 FY24. Additionally, Chemplast saw an EBITDA of ₹32 crore, reversing the EBITDA loss of ₹7 crore recorded in the same quarter last year.
The company has faced challenges over the past two years, including product dumping of Suspension and Paste PVC, which impacted margins. However, the situation showed signs of recovery in FY25 compared to the previous year. While pricing pressures from imported Suspension PVC from China and Paste PVC from the European Union impacted margins, domestic demand remained strong. The consumption of Suspension PVC grew by 11% and Paste PVC by 13% from April to December 2024.
CMCD performed steadily in Q3 FY25, and the value-added chemicals segment, including products like Caustic Soda, Chloromethanes, and Hydrogen Peroxide, saw mixed demand across different industries. However, the segment experienced a 5% volume increase in Q3 and a 24% growth over the first nine months of FY25, driven by consistent demand from various sectors.
The Suspension PVC industry saw strong growth, particularly from the housing, construction, irrigation, and drinking water sectors. The company is optimistic about future demand, especially with the recent Union Budget’s extension of the Jal Jeevan Mission until 2028, which is expected to further boost Suspension PVC consumption.
Chemplast Sanmar Limited, a key entity of the SHL Chemicals Group and part of The Sanmar Group—one of South India’s most established corporate conglomerates—is a leading manufacturer of specialty chemicals. The company specializes in Specialty Paste PVC resin and custom-manufactured chemicals catering to the agrochemical, pharmaceutical, and fine chemicals industries. Additionally, Chemplast produces a range of essential chemicals, including Caustic Soda, Chloromethane products, Hydrogen Peroxide, and Refrigerant gas.
As one of India’s most integrated chemical plants, Chemplast operates with a closed manufacturing loop, ensuring efficiency and sustainability. Through its wholly owned subsidiary, Chemplast Cuddalore Vinyls Limited, the company also manufactures Suspension PVC. It holds the distinction of being the country’s largest producer of Specialty Paste PVC Resin and the second-largest producer of Suspension PVC.
With a legacy of innovation, Chemplast has been a pioneer in its field, making strategic choices in feedstock, manufacturing processes, and sustainable practices. The company is widely recognized as an industry leader in environmental responsibility and has received numerous accolades for its commitment to sustainability and eco-friendly operations.
