Himadri Speciality Chemical Ltd, headquartered in Kolkata, has unveiled ambitious plans to expand its specialty carbon black capacity through a brownfield project in West Bengal. With a significant investment of Rs 220 crores, the company aims to address the burgeoning demand from European markets, particularly in light of the impending ban on Russian carbon black imports by the EU.
Scheduled to be operational within the next 18 months at Singur in the Hooghly district, this expansion initiative targets a substantial increase in the company’s specialty carbon black capacity by 70,000 tonnes per annum, raising the total to 1.3 lakh tonnes per annum. Consequently, this strategic move will elevate Himadri’s overall capacity to 2.5 lakh tonnes from the current 1.8 lakh tonnes.
Anurag Choudhary, CMD & CEO of Himadri Speciality Chemical Ltd, highlighted the anticipated surge in demand for specialty carbon black following the EU’s impending ban on Russian imports. He emphasized that this expansion endeavor is poised not only to enhance profitability but also to diversify the company’s product mix towards high-margin specialty carbon black. Choudhary also projected an increase in exports from 25% of their turnover to 35% over the next three years.
Upon completion, Himadri aims to establish the world’s largest specialty carbon black capacity at a single site, solidifying its position as a global leader in the industry. The company, which operates seven manufacturing facilities across India, reported a robust capacity utilization rate of 92% in FY23-24.
Specialty-grade carbon black, renowned for its extensive applications in pigments for paints, coatings, inks, and toners, commands a premium over regular-grade carbon black due to its superior quality and performance.
In addition to expanding its carbon black capacity, Himadri is venturing into the realm of energy storage by focusing on specialty carbon black, prized for its exceptional electrical conductivity. The company has introduced a range of high-performance specialty carbon blacks tailored for niche applications and is in the process of setting up India’s first commercial lithium-ion phosphate (LFP) cathode active material facility.
The company’s stellar financial performance underscores its growth trajectory, with a notable 49% increase in net profit for the March quarter, reaching Rs 115 crores compared to Rs 77 crores in the same period last year. Quarterly revenue surged to Rs 1,177 crores, up from Rs 1,029 crores year-on-year, with EBITDA witnessing a robust 45% increase at Rs 177 crores. For FY24, Himadri achieved commendable revenue of Rs 4,185 crores and a net profit of Rs 410 crores, attaining a net debt-free status.
