With India’s first integrated carbon black complex, Epsilon Carbon Private Limited will have secured raw materials supply with better yield. In an interview, Vikram Handa, MD, Epsilon Carbon, shared the company’s aggressive expansion plans with top-notch manufacturing capabilities.

With the commission of India’s first integrated carbon black plant, Epsilon Carbon Private Limited (ECPL) is upbeat on producing more quality-consistent products with better yield and lesser carbon footprint than its peers.

ECPL, India’s leading coal tar derivatives company, recently commissioned the production at its carbon black complex located in Bellary, Karnataka, which has a capacity of 115,000 tonnes per annum (TPA). The plant produces both tread and carcass grades of ASTM carbon blacks for tyre, non-tyre rubber and plastic masterbatch.

Established in 2010, today ECPL has manufacturing units in Karnataka, Chhattisgarh and Odisha in India. To be a leader in the carbon and coal tar industry globally, the company focuses on environment-friendly and energy-efficient processes. It currently produces coal tar derivatives such as graphite pitch, binder pitch, carbon black oil, anthracene oil and naphthalene used to make aluminium, carbon black, tyres, mechanical rubber goods, graphite and speciality chemicals and other products.

Manufacturing Advantages

ECPL’s Bellary carbon black unit is located in the JSW Steel complex, where it procures coal tar. ECPL has been operating a coal tar distillation plant for the last seven years, and one of the by-products of cold tar distillation is carbon black oil, which it sells to other carbon black manufacturers. The anthracene oil generated in the coal tar distillation process is used as a clean feedstock in the carbon black unit. “Over the last five years, many carbon black manufacturers have been buying the feedstock from us to make their products. When we saw more raw material was becoming available to us, we forward integrated to use our oil to make carbon black. We are the only carbon black manufacturer who is completely backward integrated,” says Vikram Handa, MD, Epsilon Carbon.

Carbon black is used as a reinforcement agent in tyres. Though carbon black is being replaced with silica in passenger vehicle tyres, it is still widely used in commercial tyres. ECPL produces hard and soft grades of carbon black to cater to both tyre and non-tyre applications in domestic and international markets.

One unique advantage that ECPL enjoys is the lower sulphur content in its feedstock. The company uses captive low-sulphur feedstock, which has between 0.3-0.5 percent sulphur as against feedstock with around three percent sulphur used by its peers. The ECPL plant also uses waste coke oven gas from the steel plant as fuel, and tail-gas from the carbon black unit is fed back to the steel complex for pre-heating operations.

The Handa-led company has implemented many first-time pollution control measures in a carbon black plant in India. “The water requirement is very high in carbon black manufacturing. Our plant recovers and reuses water. We have also installed bag filters to collect dust in our warehouses. We really want to set high standards for the first time in India that are accredited and recognised globally,” adds Handa.

The company has already obtained REACH certifications for its products. With the high standards, ECPL focuses on higher Cpk value to maintain consistency in the manufacturing processes that customers look for.

Poised For Growth

According to Handa, in the next four to five years, the carbon industry in India is poised to witness higher growth in line with the tyre industry’s production expansion. According to ICRA, the Indian tyre industry is likely to have a capital expenditure of over INR 200 billion between FY2022 and FY2025. Explaining the growing expectations of tyre companies, Handa says, “In general, if you see, the carbon black industry is coming closer to its customers – mainly tyre companies. For instance, many carbon black producing companies are moving to Eastern Europe – an emerging hub of tyre manufacturing companies. The same trend is expected across the globe.”

“The carbon back is a very voluminous product, shipped in jumbo bags to different parts of the world. So it is challenging to move carbon black around the globe effectively. Though it’s not a very expensive product, the cost of freight becomes a big component in the prices of carbon back. Being closer to your customers always gives an advantage on the cost front,” adds Handa.

In India, many carbon black producers are located near ports, which is logical to import oil feedstock to make carbon black. However, in India, leading tyre companies are situated in the South. Being a backward integrated carbon black producer and closer to the major tyre companies, ECPL will enjoy certain advantages, believes Handa. “Being strategically located in Karnataka, we can send our products to the tyre companies located in the southern part of India in a day, whereas our competitors may take two to three days.” For its customers in other parts of the country, the company will build depots and a strong distribution network. It aims at servicing global markets and has appointed over 30 partners who will assist with local service, warehousing and logistics support to provide just on-time delivery to its customers.

Out of its current total production, around 80 to 85 percent is of ASTM grades, while the rest is speciality grades. For the time being, the company will continue to focus on ASTM grades to cement its position in the market. “I think in our future expansion, we will look at niche products, but currently, we’re focused on just ASTM goods,” explains Handa.

The company currently exports to Brazil, Indonesia, Vietnam and China. In its Phase- 2 expansion plans, ECPL will invest INR 3.5 billion, which will bring the total investment close to INR 9 billion, to expand its capacity by another 65,000 TPA. The company plans to further expand its capacity of carbon black to a total of 300,000 TPA. “So, engineering, environmental clearance and all these things are envisaged for a 300,000 TPA-complex, which will be the largest single-location carbon black plant in India that will bring cost efficiency and consistent quality products for its customers,” says Handa.

Right now, around 60 percent of production is consumed locally, and the rest is exported. In the future, it targets to take up local supply to 80 percent in the next three months. On the segment side, the company aims to supply around 70 percent to tyre companies and the remaining to non-tyre companies. Currently, the ratio is other way around.

Handa also stresses the need for effective collaboration between tyre companies and carbon black makers. He says his company looks at the growth synergies with tyre companies catering to demand generated due to the aggressive expansion of the tyre production. “We at Epsilon Carbon Black look at developing better products tapping into all types of demand of tyre companies in future. So it’s essential to work with tyre companies jointly. You don’t want a situation where tyre companies are expanding production, and the larger requirement of carbon black will be met through imports. And we, as a carbon black manufacturer, also do not want to be an opportunist and export our product to take price advantage. We look for long term partnerships,” explains Handa.

At the start, the company’s focus is really to qualify as a supplier to our customers. “Today, more than 1,000 customers have used carbon black. Some of them might have bought 25 kg, some 100 tonnes, but the fact is that everybody is trying a carbon black, getting used to it, qualifying it, and that opens the door to sell more to the customers hopefully,” concludes Handa. (TT)

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The Yokohama Rubber Co., Ltd. has been selected as the official tyre supplier for the groundbreaking FIA Extreme H World Cup, the world's first hydrogen-powered motorsport series. The company will supply its GEOLANDAR brand of tyres for the championship, which is scheduled to commence next month in Saudi Arabia. The company will also continue to supply GEOLANDAR tyres for the Extreme E off-road electric vehicle series, which holds its final event on 4–5 October in Saudi Arabia.

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In alignment with the environmental principles of these series, Yokohama Rubber will provide a specially developed prototype tyre based on its GEOLANDAR X-AT model. This tyre has been engineered with a significantly increased ratio of sustainable materials, comprising 38 percent renewable and recycled content. It has also been fortified with enhanced durability characteristics to withstand the unique demands of heavy hydrogen-powered and electric off-road racing vehicles.

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Indian tyre maker to pass full benefit of tax cuts to customers from 22 September

CEAT Limited said on Thursday it would reduce prices across its entire tyre range following the Indian government’s decision to cut goods and services tax (GST) rates on tyres, with the full benefit being passed on to customers.

The Mumbai-based tyre manufacturer said new prices would take effect from 22 September, covering commercial, agricultural, passenger vehicle and two-wheeler segments.

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“We thank the Government of India and the GST Council for their timely and progressive decision to rationalise tax rates in the tyre sector,” said Arnab Banerjee, Managing Director & CEO of CEAT Limited.

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Banerjee added the move would “spur formalisation and greater compliance, while also fostering sustainable growth in the sector.”

The GST rate cuts represent a significant policy shift for India’s automotive sector, where high taxation has been a longstanding concern for manufacturers and consumers.

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The Yokohama Rubber Co., Ltd. has been officially recognised as a DX Certified Business Operator by Japan's Ministry of Economy, Trade and Industry (METI). The designation, which was granted on 1 September 2025, identifies companies that are thoroughly prepared for digital transformation as outlined by the Digital Governance Code.

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