Shivtek Spechemi Industries to expand manufacturing capabilities through new land acquisition

Shivtek Spechemi Industries is looking to expand it’s manufacturing capabilities through new land acquisition and expanding the existing manufacturing facilities, Amitt Nenwani, Managing Director of the firm told ET.

It has acquired a 21-acre land parcel at Pungam (Ankleshwar), Gujarat. The site holds strategic real estate value, situated bang on the Delhi-Mumbai Expressway (with the entry/exit ramp located just 1.2 km away).

The Pungam site serves as a central hub, located 45–50 km from Hazira Port and 45–50 km from Shivtek’s existing manufacturing plant in Dahej.


The 21-acre parcel was purchased through a bank auction via Kotak Mahindra Bank . The land is a converted, notified industrial land parcel (outside CIDC purview).

Read more: Shivtek Spechemi Industries to invest Rs 650 cr on two new plants in Gujarat, Rajasthan

“When setting up high-value advanced manufacturing, real estate selection comes down to logistics efficiency and supply chain velocity. Gujarat is already the undisputed capital of India’s chemical industry, but Pungam specifically gives us an unmatched trimodal advantage,” said Nenwani.

Shivtek is constructing the new facility entirely from the ground up as the first industrial entrant on this specific plot.

Shivtek is committing an investment of Rs 150 crore to build a state-of-the-art production facility and dedicated storage infrastructure at the Pungam site.

“Being 1.2 km from the Delhi–Mumbai Expressway exit, 45 km from Hazira Port, and equidistant between our Dahej facility and major arterial routes connects our raw material imports directly to end-user industrial markets across North and West India with zero multi-city transit friction,” the executive said.

Read more: Max Estates to ink JDA for 9.76 acre land in Ghaziabad

Leasing of factory space by manufacturing companies is projected to rise to 30-32 million sq ft annually by 2030 from 21.3 million sq ft in 2025, driven by capacity expansion, localisation and high-value sectors such as electronics, semiconductors, renewables and automobiles, according to a report.

India has built one of the world’s largest industrial land ecosystems to support manufacturing-led growth, show data from real estate services company Savills. The India industrial land bank comprises 4,249 industrial parks spanning 1.6 million acres, with more than 253,600 acres readily available for development, it said in the report.

Government initiatives such as Make in India, the PLI (production-linked incentive) scheme and Atmanirbhar Bharat, along with global supply chain shifts, are accelerating India’s transition from ‘Make in India’ to ‘Made by India’, positioning it as a competitive manufacturing and export hub.

Shivtek is also constructing a 24,000 KL captive tank farm—the company's first owned tank farm facility—to store 4–5 months of imported raw material inventory internally and eliminate third-party rental costs (such as leasing space at Adani ports).

The Pungam plant will house R&D and pilot lines for 99.9999% ultra-high-purity specialty chemicals (such as semiconductor-grade isopropyl alcohol and hydrogen peroxide). These clean-room chemicals are required to cleanse silicon wafers during semiconductor fabrication.

Shivtek has also acquired 8 acres of land in Rajpura (Punjab)—located 500 meters from its existing plant—to build India’s first manufacturing plant for chlorinated polyethylene (CPE).

India currently imports 100% of its CPE demand (2,000–2,500 tonnes per month) entirely from China. Shivtek is setting up a pilot project of 500 tonnes/month targeted for operational rollout in FY 2027–2028. CPE is the primary raw material for WPC (Wood Polymer Composite), an eco-friendly alternative to conventional wood used for interior panelling, doors, and furniture in residential and commercial real estate.

WPC is termite-proof, moisture-resistant, cost-competitive with natural timber, and eliminates deforestation. WPC adoption directly supports affordable housing initiatives such as the PM Awas Yojana and reduces India’s heavy forex outflow caused by importing timber containers from South America and Africa.

“As mass housing drives under PM Awas Yojana scale up, real estate developers must transition from conventional wood to WPC. WPC saves forests, is termite-proof, costs the same as wood, and cuts down the hundreds of timber containers imported daily into Indian ports,” said Nenwani.

Shivtek recently announced a strategic capacity expansion of 14,000 MT at its flagship manufacturing facility in Kurnool, Andhra Pradesh. The expansion, involving a capex of approximately Rs 15 crore, focuses on scaling production within the company’s core Chlorinated Paraffins (CP) product category.

Founded in 1987, part of the Shiva Group, Shivtek manufactures specialty chemicals, performance chemicals, oil additives and specialty plasticizers. Headquartered in Gurugram, the company has manufacturing facilities in Dahej (Gujarat), Kurnool (Andhra Pradesh) and Rajpura (Punjab).