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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HS HYOSUNG ADVANCED MATERIALS has completed and commenced operation of a 17.5-MWp rooftop solar power installation at its facility in Vietnam’s Nhon Trach Industrial Park, located within Dong Nai Province. This marks a significant step in the company’s broader effort to reshape its Vietnam operations – its largest global manufacturing base for tyre cords and technical yarns – into what it terms a ‘Smart Green Factory’. By merging renewable energy infrastructure with digital energy management systems, developed in partnership with the energy IT specialist Nuriflex, the firm is positioning this site at the forefront of its transition towards becoming a global eco-friendly manufacturing hub.

A key element of this transformation is the deployment of an Internet of Things based energy management system, which allows for real-time oversight of electricity generation and equipment performance. This digital layer not only streamlines operational efficiency but also contributes to greater equipment reliability and overall productivity gains, ensuring that the integration of renewable energy delivers tangible improvements beyond simple power generation.

With further solar installations set to be completed by August, total rooftop capacity at the Nhon Trach site will reach 37.5 MWp. Once fully operational in the latter half of the year, HS HYOSUNG ADVANCED MATERIALS anticipates annual electricity cost savings exceeding KRW 6 billion (approximately USD 3.94 million), bolstering its cost competitiveness. The expansion is also expected to deliver meaningful reductions in greenhouse gas emissions, reinforcing the company’s long-term commitment to sustainable management practices.

Through advanced energy IoT solutions, the Vietnam subsidiary now systematically manages carbon reduction data generated from its solar power operations. This capability enables a more structured response to rising demands from major global customers – including Michelin, Bridgestone, Goodyear, Continental and Pirelli – for verified renewable energy usage and carbon emissions information. By strengthening its ESG performance across the supply chain, the company is leveraging its solar infrastructure and smart energy management not merely as facility investments but as strategic tools to enhance environmental responsibility and competitiveness in a market where sustainable value chains are increasingly essential.

“Starting with our Vietnam production base, we are simultaneously promoting renewable energy transition and energy efficiency improvements across our operations. By expanding solar power facilities, we will strengthen both cost competitiveness and ESG capabilities while proactively responding to the evolving requirements of our global customers,” said an official from HS HYOSUNG ADVANCED MATERIALS.

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The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for February 2026, detailing a period of significant market activity influenced by geopolitical tensions, macroeconomic changes and shifting supply-demand dynamics within the global natural rubber sector.

As per the report, global natural rubber production for 2026 is forecast to reach 15.324 million tonnes, a 2.2 percent increase from the 14.996 million tonnes recorded in 2025. February output alone is projected at 994,000 tonnes, marking a 3.4 percent year-on-year rise due to favourable weather and higher rubber prices. Despite this overall growth, production trends vary among member nations. While Thailand is expected to remain the top producer, Indonesia and Vietnam face short-term constraints from structural and agronomic issues. Meanwhile, Malaysia is advancing efforts to restore abandoned plantations, with the Rubber Production Incentive activated in Sarawak and Sabah and the Malaysian Rubber Board targeting the rehabilitation of 4,137 hectares of idle land in 2026.

Physical and futures markets saw notable price increases across major grades in February. In Kuala Lumpur, SMR-20 averaged USD 2.01 per kilogramme, a 5.13 percent monthly gain, while STR-20 in Bangkok rose 5.12 percent to USD 2.11 per kilogramme. Sheet rubber grades also strengthened, with RSS-3 increasing 7.84 percent to USD 2.35 per kilogramme and RSS-4 in Kottayam surging 10.38 percent to USD 2.34 per kilogramme. Centrifuged latex in Kuala Lumpur closed the month at USD 1.61 per kilogramme. Futures mirrored this firming trend, as the Shanghai Futures Exchange May 2026 contract averaged roughly 16,508 CNY (approximately USD 2,388) per tonne and the SGX contract averaged USD 1.92 per kilogramme, supported by strong demand and tightening supply expectations ahead of the seasonal low-yield period from February to May.

Crude oil volatility added further complexity, with Brent averaging USD 70.89 per barrel in February – up 6.43 percent from January – before spiking to approximately USD 104 per barrel in early March following military actions in the Middle East and the closure of the Strait of Hormuz, a conduit for nearly 20 percent of global oil supply. This has introduced a risk premium with implications for synthetic rubber competitiveness and natural rubber demand. Currency shifts also play a role, as the Malaysian Ringgit appreciated modestly to 3.89 MYR per USD and the Thai Baht strengthened to around 31.08 THB per USD by late February, affecting trade competitiveness. Looking ahead, rising automotive production, especially of new energy vehicles in China, India and Southeast Asia, is expected to sustain demand and support prices. However, risks persist from US-China trade tensions, Middle East geopolitical instability, weather uncertainties during the low-yield season and currency fluctuations tied to US monetary policy, all of which could disrupt supply chains and export revenues.

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Tokyo Zairyo Co., Ltd., a wholly owned subsidiary of Zeon Corporation, marked a significant milestone in November 2025 by establishing a new branch office in Chennai, Tamil Nadu, India. Following the completion of all necessary preparations, this location has now commenced full-scale operations. The move represents a deliberate effort to broaden the company’s commercial reach across the Indian market while simultaneously constructing an organizational structure capable of responding with greater agility to the evolving and increasingly diverse requirements of its customers.

This southern expansion comes approximately 15 years after the company first established its Indian subsidiary, Tokyo Zairyo (India) Pvt. Ltd., with an office in Gurugram, Haryana, in 2011. By positioning a second office in Chennai, the firm now operates a coordinated network spanning the northern and southern regions of the country. Close collaboration between the two locations is intended to strengthen information services and enhance user support, leveraging both internal capabilities and external partnerships to better serve Japanese automotive parts manufacturers and processors operating throughout India.

Through this dual-office structure, Tokyo Zairyo is poised to advance its core business of purchasing and selling a broad spectrum of materials, including rubber, resins and elastomers. The synchronised operations in Gurugram and Chennai enable the company to deliver more responsive support, ensuring that clients across the Indian automotive supply chain benefit from efficient service and a reliable supply of essential materials.

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Kuraray Co., Ltd. has announced a comprehensive global price adjustment for its portfolio of Liquid Rubber products and ISOBAM alkaline water-soluble polymer. These changes, which are set to take effect on 16 April 2026, will see prices rise by at least USD 2 per kg.

The driving forces behind these significant pricing actions are multifaceted, rooted in substantial disruptions to global supply chains. These disruptions are largely attributed to the ongoing conflict in the Middle East, which has had a cascading effect on logistics. Compounding this issue are the sharply rising costs associated with transportation and essential raw materials.

This strategic move is essential for the company to maintain operational stability and continue the supply of Liquid Rubber and ISOBAM amidst the volatile market conditions.

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