18 Nov 2024
Carbon black sales contributes to 45% year-on-year increase in consolidated revenue of €243m
Kolkata, India – PCBL (formerly Phillips Carbon Black Ltd) is evaluating sites for new carbon black capacity, according to the carbon black manufacturer's management team.
Greenfield expansion would enable PCBL to reach total production of 1 million tonnes per annum within three years, executives told investment analysts on a 30 Oct earnings call.
Currently, the Indian group’s carbon black production capacity stands at 770 kilotonnes per annum (ktpa), consisting of both speciality and rubber carbon black products.
PCBL expects to commission a 20ktpa speciality project in Mundra and a 30ktpa brownfield expansion in Tamil Nadu in the third quarter of its full fiscal year, ending 31 March 2025.
Furthermore, a second phase 60ktpa expansion in Tamil Nadu will bring the total installed capacity of the group to 880ktpa in fiscal 2026, explained PCBL managing director Kaushik Roy.
Phase I of the Tamil Nadu project in southern India has the nameplate production capacity of 63ktpa and was commissioned in April 2023. (ERJ report)
Upon completion of all phases, the plant will have a production capacity of 147ktpa, supported by 24 MW of 'green' power.
“We aim to reach 1 million tonnes capacity in carbon black by fiscal year 2027-to-2028, said Roy, adding that "possibly we will [beat] this target.”
Stating that PCBL is currently evaluating sites for the proposed greenfield capacity, Roy said the added volume would help to “significantly increase our global market-share.”
PCBL's carbon black business, he said, continues "to be on a strong growth trajectory and poised to capture growth in both domestic and export markets.”
“We expect significant growth in international sales volume to European markets,” the group's managing director added.
Over the quarter ended 30 Sept, PCBL reported that carbon black sales volumes grew by 14% year-on-year to 148,000 tonnes.
Total carbon black-related revenue contributed significantly to a 45% year-on-year increase in consolidated revenue which stood at INR21 billion (€243 million).
Total sales volume comprised domestic sales recorded at 90,219 tonnes, while exports saw a strong 22% year-on-year growth to 58,474 tonnes.
Of the total, 82,383 tonnes were consumed by the tire industry, while shipments to the 'performance chemicals' sector stood at 49,183 tonnes.
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