Himadri Speciality Chemicals plans Rs 1,613-cr capacity expansion across key businesses

Kolkata: Himadri Speciality Chemicals Ltd has drawn up a growth roadmap centred on capacity expansion, margin improvement and profit acceleration, as it aims at building the materials backbone for the energy transition economy, a top company official said.

The company plans to invest Rs 1,125 crore in lithium iron phosphate (LFP), Rs 248 crore in speciality chemicals, Rs 70 crore in carbon nanotubes and Rs 170 crore in super speciality carbon black, according to its investor presentation for the July-September quarter.

The proposed investments, involving a mix of greenfield and brownfield projects, are expected to be completed by the fourth quarter of the next financial year.


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"We are building the materials backbone for the energy transition economy - driving sustainable growth for decades to come. The future will belong to the companies that can continuously reload themselves - execute, reinvest, and scale again," Himadri Speciality Chemicals Chairman and CEO Anurag Choudhary said.

The company is looking to build its business around three verticals - commodities, speciality chemicals and new energy materials - while diversifying its portfolio towards higher-value products and applications.

Its strategy includes building a global presence in battery materials, strengthening its position in high-performance speciality carbon black, expanding across key end-use segments and emerging as one of the top three global coal tar pitch suppliers outside China.

"Himadri is shifting gear towards high-value growth, with our diversification aimed at driving business resilience resulting in significant sustainable growth in profitability over the next two years," Choudhary said.

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Alongside capacity addition, it is focusing on value-added speciality chemicals to improve the product mix and tap demand across industrial, construction, pharmaceutical and other applications.

The company has a nearly 67-per cent share of the domestic naphthalene market. The chemical is used in dyes, resins and as an intermediate in agrochemicals, while its consumer-facing applications include naphthalene balls sold under the 'Durofresh' brand.

It has also launched anthraquinone, a speciality chemical used in dyes, pigments and pulping catalysts, with applications in pharmaceuticals and agrochemical intermediates. The product offers opportunities for import substitution as well as exports, the company said.

Its sodium naphthalene formaldehyde (SNF) and polycarboxylate ether (PCE) businesses cater to both traditional industrial demand and the construction chemicals market.

The company has also established "India's first" commercial carbazole plant. Carbazole is used in pharmaceuticals, electronics and as an intermediate in dye manufacturing.

The planned investments in LFP and carbon nanotubes are aimed at strengthening the company's presence in new energy materials, while the expansion in speciality chemicals and carbon black is expected to support its existing businesses and higher-value product offerings, officials said.