Himadri Speciality to Boost Bengal's Carbon Black Capacity with ₹220cr Investment

Himadri Speciality Chemical Ltd, based in Kolkata, has announced a significant expansion of its speciality carbon black capacity through a brownfield project in West Bengal. The company plans to invest Rs 220 crores to meet the growing demand from Europe, especially in light of the upcoming ban on Russian carbon black imports by the EU. This expansion, set to be operational within the next 18 months at Singur in the Hooghly district, aims to increase the company's speciality carbon black capacity by 70,000 tonnes per annum, bringing the total to 1.3 lakh tonnes per annum. This move will enhance Himadri's overall capacity to 2.5 lakh tonnes from the current 1.8 lakh tonnes.

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Anurag Choudhary, CMD & CEO of Himadri Speciality Chemical Ltd, highlighted the anticipated surge in demand for speciality carbon black due to the EU's impending ban on Russian imports. He noted that this expansion would not only boost profitability but also diversify the company's product mix towards high-margin speciality carbon black. Choudhary also projected an increase in exports from 25 per cent of their turnover to 35 per cent in the next three years.

Upon completion, Himadri aims to host the world's largest speciality carbon black capacity at a single site. The company, which operates seven manufacturing facilities across India, reported a capacity utilization rate of 92 per cent in FY23-24. Speciality-grade carbon black, used in pigments for paints, coatings, inks, and toners, commands a higher premium than regular-grade carbon black due to its extensive applications.

Himadri is also venturing into energy storage by focusing on speciality carbon black for its exceptional electrical conductivity, making it an ideal conductive additive in lithium-ion batteries. The company has introduced a range of high-performance speciality carbon blacks for niche applications and is setting up India's first commercial lithium-ion phosphate (LFP) cathode active material facility. Additionally, Himadri has invested in Invati Creations and Australian start-up Sicona Battery Technologies to produce high-quality lithium-ion battery materials.

The company's financial performance has shown significant improvement, with a 49 per cent increase in net profit for the March quarter at Rs 115 crore compared to Rs 77 crore in the same period last year. Revenue for the quarter was reported at Rs 1,177 crore, up from Rs 1,029 crore year-on-year, with EBITDA increasing by 45 per cent at Rs 177 crore. For FY24, Himadri achieved a revenue of Rs 4,185 crore and a net profit of Rs 410 crore, reaching a net debt-free status.