Himadri Speciality Chemical Ltd., a leading Indian speciality chemicals manufacturer, is reinforcing its market position with significant expansions in carbon black production, a strategic entry into speciality tyre manufacturing, and ambitious diversification into EV battery materials.

The company reported robust financial performance for the fiscal year ended 31 March 2025, with profit after tax jumping 36 percent to INR 5.58 billion, setting the stage for its expansion plans.

In a major development for its core business, Himadri is expanding its speciality carbon black operations at Singur from 60,000 to 130,000 metric tonnes annually, with operations expected to begin by Q3 FY26. This expansion will boost total capacity to 250,000 metric tonnes, making it “the single largest site for speciality carbon black facility in the world," according to Managing Director Anurag Choudhary.

The INR 2.2 billion investment is projected to generate annual revenue of INR 4.4 billion, with impressive margins ranging from INR 20,000 to 50,000 per tonne, depending on grades. The expansion targets growing demand across specialty fibre blacks, conductive black, inks, plastics, coatings, and battery segments.

Unlike competitors facing market pressures, Himadri's strategic focus on specialty products has created resilience in its business model. “We are largely protected. Our very minimum volume goes to the tyre industry," Choudhary noted, with less than 25 per cent of its carbon black sales going to tyre manufacturers.

Following its acquisition of Birla Tyres alongside resolution applicant Dalmia Bharat Refractories, Himadri is strategically entering specialty tyre manufacturing. The company will focus on off-highway and electric vehicle segments, with operations beginning in phases starting from the end of Q1 FY26.

Initial production will be 10-20 tonnes, gradually increasing quarterly. Products initially include agricultural and mining tyres and bias tyres for commercial vehicles before expanding into passenger car radials and EV tyres. The company is currently awaiting Bureau of Indian Standards approval, which is expected within 30 days.

Himadri is also establishing a 200,000 metric tonne annual capacity plant for lithium iron phosphate (LFP) cathode active material, with the initial 40,000 metric tonne capacity phase operational by Q3 FY27. "We’ll be the first manufacturing plant in the world other than China for electric commissioning,” Choudhary said.

The company aims to boost profit to over INR 8 billion ($96 million) by fiscal 2027, representing a 43 percent increase from current levels. “By FY ’27, we expect a PAT of 800-plus crores," said Choudhary. “Our PAT will be INR 8 billion-plus, so that lays down the road map for growth, and it will be coming from all around the business, from our existing business to the new businesses that we are entering and the capacities that are setting up."

Export sales accounted for 27 percent of total revenue in FY25, with carbon black exports representing 35-40 percent of that segment's sales. The company sees "very bright” export opportunities for its coal tar pitch business in Middle Eastern and Southeast Asia.

"Battery breakthroughs won't just come from one component, but from a holistic mastery of the ecosystem," Choudhary told analysts, highlighting the company's strategic push into clean energy materials amid booming electric vehicle adoption.

Leading global tyre manufacturer NEXEN TIRE has signed a long-term supply agreement with LD Carbon (LDC) for recovered carbon black (rCB) with an aim to boost the adoption of sustainable materials. This partnership is in line with the company's commitment to improving worldwide sustainable management standards.

In order to significantly reduce carbon emissions and encourage resource cycle, LD Carbon produces its recovered carbon black by pyrolysing end-of-life tyres in an oxygen-free atmosphere. Using recycled carbon black instead of petroleum-based carbon black is a smart move that preserves product performance and promotes environmental sustainability. The company has been using more recovered carbon black over time, and this agreement aims to hasten the shift to more ecologically friendly raw materials.

Recovered carbon black from manufacturing sites worldwide, such as those in China, the Czech Republic and Korea, will be used by NEXEN TIRE. In order to increase its global competitiveness, NEXEN TIRE is creating a circular resource structure that will provide a steady supply of recycled materials and integrate them into its global manufacturing chain. The use of sustainable materials in tyre manufacturing will be required under the European Union's proposed Ecodesign for Sustainable Products Regulation (ESPR), and NEXEN TIRE is in a strong position to increase its competitiveness by proactively creating a sustainable raw material supply chain, especially in Europe, where it accounts for almost 40 percent of total sales.

John Bosco (Hyeon Suk) Kim, CEO, NEXEN TIRE, said, “Expanding the usage of recovered carbon black is a strategic step that demonstrates our commitment to ESG management and proactive response to global environmental concerns. We will continue to accelerate the transition to eco-friendly materials and establish a tire manufacturing system that has a low environmental effect from production to disposal.”

LANXESS, a speciality chemicals company, has achieved the top score of ‘A’ in the Climate Change category of the CDP annual sustainability ratings. This is LANXESS’s eighth time in a row in the climate category on the A list by the global environmental non-profit organisation.

In the most significant investor questionnaire in the world, the non-profit CDP assesses the performance and openness of organisations in the categories of Climate Change, Water Security and Forests. Every year, it gathers and evaluates data and information on environmental consequences, goals and plans on behalf of investors. Participation is entirely voluntary.

LANXESS led the evaluation group of more than 24,700 businesses globally in the Climate Change area with the highest grade of A, secure a spot among the top two percent of all rated companies. These businesses, according to CDP, are distinguished by extensive and high-quality data that offers a thorough summary of environmental impacts and transformation goals. Additionally, LANXESS got an A- and reaffirmed its top spot in the Water Security area.

Hubert Fink, member of the Board of Management of LANXESS AG, said, “With our solutions and expertise, we are making a significant contribution to sustainable development. At the same time, we are helping our customers achieve their sustainability goals. CDP's renewed top rating underscores our commitment to climate protection and shows that we are on the right track.”

Bansal Wire Industries (BWIL)  unveiled its largest manufacturing facility in Dadri, bolstering India’s push to expand its manufacturing and infrastructure sectors. The 37-acre plant increases BWIL’s total manufacturing sites to five, with one in Bahadurgarh and three in Ghaziabad. The company’s production capacity has risen to 6 million metric tonnes per annum from 2.4 million tonnes previously.

The advanced facility produces specialised wires for diverse sectors, including agriculture, automotive, construction, power transmission, and general engineering. For the automotive industry, the plant manufactures steel wires, hose wires, and low-relaxation pre-stressed concrete steel strands used in bullet trains and metro systems.

The Dadri operation integrates industrial-scale processes with sustainability practices, including rainwater harvesting, solar power generation, acid-free wire cleaning and energy-efficient machinery. An on-site effluent treatment plant and landscaped areas are also featured. A new section for speciality wires was added this quarter, with IT/OT (Internal/Outer) wires coming soon.

Manufacturing Capabilities

The plant produces high-carbon steel wire, valued for its wear resistance and strength, making it suitable for door panels, vehicle frames, bushings, springs, and other automotive components. The facility also manufactures bead wire, a low-carbon wire with properties including weldability, ductility, high strength, fatigue resistance, adhesion to rubber, and malleability. Visible at the edge of a tyre, bead wire secures the tyre to the rim. Some wires receive zinc coating to increase corrosion resistance.

The bead wire production process follows multiple stages: procuring high-carbon steel rods, drawing high-tensile steel wire, passing through a lead bath, washing in an HCL tank, drying via heat treatment, applying zinc and copper coatings to form brass, wiping excess coating, cooling with chemical additives, collecting the wires and reducing them to thin filaments for those wires.

Each wire is drawn differently based on customer requirements before passing through Chinese and Indian furnaces. A 30-metre furnace operating at 980-1000°C restores wire properties after initial processing. After cleaning the HCL tank, zinc and copper coatings are applied. The chemical and subsequent stages occur in air-conditioned environments to maintain wire properties during separation into filaments. The 0.2mm filaments are combined to achieve 1.6-2.4mm thicknesses for commercial and TBR (Truck, Bus, and Radial) tyres.

The Dadri plant also produces hose wires and steel cords that enhance tyre strength, performance and stability. Additionally, it manufactures stainless steel wires that provide aesthetic appearance, corrosion and staining resistance, and low maintenance costs for automotive applications.

Business Performance

As a diversified wire manufacturer, BWIL reports 89 percent client retention and 20-25 percent year-on-year sales growth. Exports constitute 10-15 percent of total sales, with 75 percent destined for US and European markets. Pranav Bansal noted that despite China’s dominance in steel exports, India shows "tremendous positivity” for steel and stainless-steel wires.

He dismissed concerns about US reciprocal tariffs, explaining that with exports limited to 10 percent, the company maintains growth above 20 percent. BWIL’s revenue increased 52 percent in Q3FY25, and profits rose 171 percent.

Regarding price fluctuation, Pravin Bansal said, “We follow a cost + business model at BWIL. While the prices of steel change every month, the prices of stainless steel undergo change daily. The prices are revised as soon as there is a change, ensuring that there is no lag across 90 percent of products.”

He added, "Business works on quantity terms, not on revenue. Instead, revenue is a function of raw materials, and we’ve never given too much attention to the former.” However, he acknowledged that some automotive product prices fluctuate quarterly, creating a lag for products like bead wires and suspension spring wires, with costs passed on in subsequent quarters.

Expansion Plans

Pranav Bansal outlined the company's growth strategy: "Our business model is such that we can keep investing as per the needs of our customers. We don't need to wait for a specific capacity to be established before commencing business; we can expand on a to-go basis.”

For FY26, BWIL plans a 42-acre Sanand, Gujarat plant focused on low carbon and stainless steel wires. The INR 800-900 million facility will include 0.18 million tonnes of backward integration capacity and 60,000 tonnes of new wire production.

Currently serving 5,000 customers with 4,000 SKUs, BWIL's long-term strategy involves developing products with zero price fluctuation, which Pranav Bansal describes as "most helpful for the company’s supply chain cycle."

The company contributes to India's electric vehicle sector, which recorded sales of 1.94 million units by end-2024, with Tata Motors leading the market. BWIL's steel cords and specialised wires offer high tensile strength with reduced weight for EV applications. The company also produces copper-coated and aluminium-stranded wires for electric vehicles.

 Natural rubber prices declined in March amid significant market volatility, according to the latest monthly report from the Association of Natural Rubber Producing Countries (ANRPC).

The industry body said in its Monthly NR Statistical Report for March 2025 that the downward trend was attributed to multiple factors, including the postponement of the European Union Deforestation Regulation (EUDR), changes in US tariff policies, and falling oil prices.

Despite strong demand from China in early 2025, market sentiment was dampened by growing concerns over new US tariff measures, which analysts say could reshape global rubber trade flows.

The ANRPC, representing major producing nations including Thailand, Indonesia, Vietnam and Malaysia, projected global natural rubber production to grow by a modest 0.4 percent in 2025 compared to the previous year.

Meanwhile, global demand for natural rubber is forecast to increase by 1.5 percent this year, supported primarily by expansion in the electric vehicle market, according to data compiled from ANRPC member countries.

This growth comes despite concerns of a potential global economic slowdown and complications arising from new US trade policies that could hinder international trade.

Natural rubber, a critical raw material for tyre manufacturing and various industrial applications, has faced increasing price pressures as automotive production forecasts remain uncertain in key markets.