Himadri Speciality to invest Rs 220 cr to expand carbon black capacity

Himadri Speciality Chemical Ltd, a Kolkata-based speciality chemicals major, to expand its speciality carbon black capacity in a brownfield expansion project in West Bengal, with an estimated investment of Rs 220 crores, a company official said on Sunday. The expansion is envisaged to meet the increasing demand from Europe amid an impending ban on Russian carbon black imports in the EU.The expansion, scheduled to be operational within the next 18 months and located at Singur in the Hooghly district, will be funded through internal accruals. This additional capacity of 70,000 tonnes per annum will increase the company's speciality carbon black capacity to 1.3 lakh tonnes per annum, enhancing the cumulative capacity to 2.5 lakh tonnes from the current 1.8 lakh tonnes, the official added."We foresee a significant uptick in demand for speciality carbon black, especially with the impending ban on Russian carbon black imports into the European Union. The gradual increase in the proportion of high-margin speciality carbon black will undoubtedly enhance our profitability and diversify our product mix," Anurag Choudhary, CMD & CEO of Himadri Speciality Chemical Ltd said. He also mentioned that exports, currently contributing around 25 per cent of their turnover, are expected to increase to 35 per cent in the next three years.