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.

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A new proposed standard (WK91069) from ASTM International’s recovered carbon black (rCB) committee aims to dramatically improve production monitoring and productivity for manufacturers. Currently, quality testing for rCB can take as long as 18 hours using an existing method adapted from ASTM’s carbon black standards.

The proposed standard, developed by the committee’s rCB subcommittee, would reduce testing time to just a few hours. According to Pieter Ter Haar, Director of rCB at Circtec and an ASTM member, this change will allow producers to make faster process adjustments, minimise off-spec material and provide end-users with quicker, more reliable results. The initiative reflects an industry effort to enhance efficiency and quality assurance in recovered carbon black production.

Ter Haar said, “The method currently used, which has been adopted from ASTM’s carbon black committee, results in a testing time that can take up to 18 hours. This is very inconvenient for producers for whom this is an important quality parameter.”

Gummiwerk KRAIBURG is advancing its production capabilities through a significant investment in a new, high-performance mixing line for colour compounds. This modernisation initiative underscores the company’s commitment to enhancing operational efficiency, product quality and long-term sustainability.

The state-of-the-art system is engineered to boost production flexibility, improve material consistency and lower energy consumption, aligning with both economic and ecological objectives. To ensure seamless integration, the company has implemented detailed planning that guarantees continuous order fulfilment and supply chain stability throughout the transition.

This upgrade reaffirms Gummiwerk KRAIBURG’s role as a reliable partner for high-performance applications and demonstrates its dedication to maintaining superior quality standards and unwavering production reliability in a competitive market.

Materials science firm Trinseo finalised an agreement on 19 August to establish a recycled polycarbonate production facility within the Zhangjiagang Free Trade Zone. The project represents a total investment of approximately USD 20 million, with its initial phase targeting an annual capacity of 5,000 tonnes. The signing ceremony was attended by Zhangjiagang Municipal Party Committee Secretary Han Wei, Trinseo CEO Frank Bozich and other senior company representatives.

During the event, Secretary Han Wei characterised the project as technologically advanced and well-aligned with the city’s industrial development strategy. He emphasised the municipal government’s ongoing commitment to cultivating a favourable business environment and encouraged further investment in high-value projects. In response, Frank Bozich acknowledged the longstanding support from local authorities and affirmed that the new facility would support regional economic goals and advance circular economy initiatives through innovation.

Trinseo, which established operations in Zhangjiagang in 1998, has invested nearly USD 400 million in the area, developing its largest production base in the Asia-Pacific region. The city has emerged as a significant hub for chemical and new materials industries, hosting 169 large-scale enterprises and 26 Fortune Global 500 companies, with annual output nearing RMB 80 billion. The new Trinseo project is anticipated to contribute to Zhangjiagang’s strategic goal of building a RMB 100 billion-level industrial cluster in chemical new materials.