Himadri Speciality Chemical Ltd, a prominent player in the speciality chemicals industry based in Kolkata, has announced its plan to expand its speciality carbon black capacity through a brownfield expansion project in West Bengal. The company is set to invest around Rs 220 crores in this expansion, which is strategically located at Singur in the Hooghly district to cater to the increasing demand for speciality carbon black, particularly from Europe amidst an impending ban on Russian imports in the EU.
This expansion project, scheduled to be operational within 18 months, will not only boost Himadri's speciality carbon black capacity by an additional 70,000 tonnes per annum but also elevate the company's cumulative capacity to 2.5 lakh tonnes from the current 1.8 lakh tonnes. Anurag Choudhary, the CMD & CEO of Himadri Speciality Chemical Ltd, expressed optimism about the uptick in demand for speciality carbon black and emphasized the potential for enhanced profitability and product mix diversification due to the growth in high-margin speciality carbon black production. Himadri intends to increase its focus on exports, aiming to elevate the contribution from 25 per cent to 35 per cent of their turnover in the next three years.
Furthermore, Himadri aims to become the world's largest speciality carbon black capacity at a single site upon completion of the expansion project. The company, which currently operates seven manufacturing facilities across India, anticipates the growth in demand for its products, with a robust capacity utilization rate of 92 per cent in FY23-24. Speciality-grade carbon black, crucial in various industries including paints, coatings, inks, and toners, holds a premium position compared to regular-grade carbon black due to its unique attributes. Himadri's strategic alignment with speciality carbon black, especially in the energy storage sector, underscores its commitment to innovation and meeting evolving market needs.