Kolkata-based integrated specialty carbon company, Himadri Speciality Chemical Ltd, is looking to invest ₹628 crore for brownfield expansion of its carbon black and advance carbon material units in West Bengal.

According to Anurag Choudhary, CEO, Himadri Speciality, the details regarding the proportion of debt and equity for the capital expenditure would be finalised within a month.

The estimated investment for scaling up its carbon black unit by 30,000 tonnes a year to 1.5 lakh tonne would be close to ₹148 crore. The remaining ₹480 crore (out of ₹628 crore) would go towards 20,000 tonnes a year capacity addition at its advance carbon material unit.

Its existing advance carbon plant at Falta at South 24 Parganas in West Bengal has a production capacity of 600 tonne a year.

Growing segment
“The demand for advance carbon has been growing at a CAGR of close to 35 per cent; while that for carbon black at 6-7 per cent,” Choudhary told BusinessLine, explaining the rationale behind the expansion.

The expansion of both the units would take anywhere between 18 and 24 months.

According to Utkarsh Nopany, Senior Manager, CARE Ratings, there has been hardly any capacity addition in the carbon black industry in the last 3-4 years. Hence, when the demand started picking up in the last 1-2 years, the capacity utilisation of most companies operating in the segment improved.

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