Himadri Speciality Chemical Ltd, a leading speciality chemicals company based in Kolkata, has announced plans to expand its speciality carbon black capacity in West Bengal. The company will invest an estimated Rs 220 crores for the brownfield expansion project, which is expected to be operational within the next 18 months. The expansion aims to meet the increasing demand for speciality carbon black, particularly in Europe where there is an impending ban on Russian carbon black imports. Himadri’s additional capacity of 70,000 tonnes per annum will bring its total speciality carbon black capacity to 1.3 lakh tonnes per annum, enhancing the cumulative capacity to 2.5 lakh tonnes. The expansion will be funded through internal accruals.
Anurag Choudhary, CMD & CEO of Himadri Speciality Chemical Ltd, expressed optimism about the demand for speciality carbon black and its potential impact on the company’s profitability. He highlighted the gradual increase in the proportion of high-margin speciality carbon black, which is expected to enhance profitability and diversify the company’s product mix.
Choudhary also mentioned that exports, currently contributing 25% of their turnover, are expected to increase to 35% in the next three years. This expansion will make Himadri’s speciality carbon black capacity the largest at a single site worldwide.
Himadri Speciality Chemical Ltd currently operates seven manufacturing facilities in India, located in West Bengal, Andhra Pradesh, Odisha, and Chhattisgarh. With a capacity utilization rate of 92% in FY23-24, the company has witnessed substantial demand for its speciality carbon black.
Speciality-grade carbon black is extensively used in pigment for products like paints, coatings, inks, and toners. It commands a significant premium compared to regular-grade carbon black. Himadri’s focus on speciality carbon black includes applications in energy storage, particularly in lithium-ion batteries. The exceptional electrical conductivity of speciality carbon black makes it an ideal conductive additive in lithium-ion batteries. The company has introduced a range of high-performance speciality carbon blacks specially tailored for niche applications in plastics, fibers, coatings, and inks.
In addition to the expansion of its speciality carbon black capacity, Himadri is also setting up India’s first commercial lithium-ion phosphate (LFP) cathode active material facility. The company has partially acquired stakes in Invati Creations and Australian start-up Sicona Battery Technologies to produce high-quality Lithium-ion (Li-ion) battery materials.
The company’s financial performance has also been positive. It reported a 49% increase in net profit for the March quarter, reaching Rs 115 crore compared to Rs 77 crore in the same period last year. Revenue for the quarter stood at Rs 1,177 crore, up from Rs 1,029 crore year-on-year, with a 45% increase in EBITDA at Rs 177 crore. On an annualized basis for FY’24, the company achieved a revenue of Rs 4,185 crore and a net profit of Rs 410 crore, making it net debt-free.
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