Home / Companies / News /  Epsilon Carbon to invest 500 crore for expansion of Karnataka plant

Epsilon Carbon, a producer of carbon black, is investing 500 crore to add 1 lakh tonne more capacity to its plant in Karnataka. The investment for the expansion of the plant will make it the third largest producer of the material when completed.

“The proposed capex plan also includes an additional 50 crore investment to set up a 25-mw captive power plant that will be fired by the waste gas generated by the carbon black plant," the company said.

“Currently, the company has an installed annual capacity of 1.15 lakh metric tonne in the Vijayanagar, Karnataka plant, which was commissioned at an investment of 500 crore in FY2019 and this gives it a market share of 7 per cent in the 1-million tonne industry ( 10,000 crore industry), Epsilon MD Vikram Handa, who is the son-in-law of the JSW group chairman Sajjan Jindal," told PTI on Monday.

He also stated that once the new capacity is operational, the company will have 2.15 lakh tonne annual capacity, placing it third in terms of capacity and with a 14% market share.

Handa also spoke on company results that the company ended FY22 with 1,800 crore in revenue, 20% of which came from exports across 25 markets, and that revenue is expected to reach 3,500 crore this year due to price increases and 5,000 crore next year.  Philips Carbon Black and Birla Carbon lead the 10,000 crore domestic carbon black industry.

"On exports, the company will focus on Europe and North America which were dependent on Russian supplies till it invaded Ukraine in February this year. So, that is a large market for us to be tapping. Similarly, the growing domestic tyre market is another huge opportunity. The non-tyre market is also a growth avenue," he said.

Vikram Handa also claimed that the capex will be funded through internal accruals and debt.

The company claims to be fully integrated manufacturer of specialty carbon, carbon black, and advanced carbon.

Carbon black is a finely divided form of amorphous carbon obtained as soot from the partial combustion of hydrocarbons. It is primarily used as reinforcing agents in automobile tyres and other rubber products. Carbon black is also used in printing ink as it has extremely black pigments with high hiding power.

 

With Inputs from PTI.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout