India’s Chemplast Sanmar eyes start

Priya Jestin

03-Aug-2023

MUMBAI (ICIS)–India’s Chemplast Sanmar expects to bring on stream the first phase of expansion at its custom manufactured chemicals division (CMCD) in the southern Tamil Nadu state before September 2023, a company source said on Thursday.

Its 41,000 tonne/year specialty paste polyvinyl chloride (PVC) plant, meanwhile, is expected to start up within October 2023 to March 2024, the second half of India’s current fiscal year, the source said.

“We are investing over [Indian rupees] Rs10bn ($121m) towards expanding our capacities in the paste PVC and CMCD segments,” he added.

The Rs6.8bn CMCD project – which manufactures advanced intermediates for the agrochemical, pharmaceuticals and fine chemicals segments – located in Berigai and will be in two phases.

The second phase of expansion should be completed in the second half of the current financial year ending March 2024, the company source said.

“We plan to further expand into fine chemicals and pharmaceuticals sectors, broaden our portfolio and access new markets and customers,” the company source said.

For the new specialty paste PVC project at Cuddalore in Tamil Nadu, the company is targeting to start it up before March 2024, he said.

Chemplast’s total specialty paste PVC capacity will grow to 107,000 tonnes/year once the new plant begins operations.

This will account for around 83% of India’s total paste PVC production capacity and the company expects to have nearly 66% of the domestic market share, Chemplast said in its 2022-23 annual report released on 15 July 2023.

“India is heavily import dependent and the new plant provides an opportunity for import substitution. There is growing demand in the end-user industries driven by an increase in per capita consumption,” it added.

The company currently operates a 66,000 tonne/year specialty PVC paste plant in Mettur in Tamil Nadu.

The domestic demand for specialty paste PVC resin grew 17% to 163,000 tonnes in financial year 2022-23 from 139,000 tonnes in 2021-22, as per the company’s annual report.

The recovery in the auto and footwear sectors fueled the growth in demand for specialty paste PVC resin, it added.

Key applications for specialty PVC paste in India include synthetic leather for apparel, footwear and automotive upholstery. It is also used to make vinyl gloves.

Chemplast’s wholly-owned subsidiary Chemplast Cuddalore Vinyls Ltd operates 331,000 tonnes/year of suspension PVC at Cuddalore in Tamil Nadu.

Suspension PVC is used in mainly construction and water supply sectors to make pipes, flexible hoses, tubings, wires and cables.

The company also produces caustic soda, chlorochemicals, hydrogen peroxide at its three manufacturing facilities in the Tamil Nadu state and in Karaikal in the union territory of Puducherry.

Focus article by Priya Jestin

($1 = Rs82.76)

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