Birla Nuvo plans Mexican foray

To set up 50,000 tonne carbon black unit in two phases.

Aditya Birla Nuvo is planning a foray into the Mexican market after leaving its footprints in China, Thailand and Egypt in the carbon black business.

Encouraged by the impressive performance of its carbon black division, the Aditya Birla group company is planning to set up a 50,000-tonne per annum (tpa) plant in Mexico.

"This will be a greenfield facility, which will be developed in two phases. However, investment details are not finalised yet in the wake of Mexican elections," a senior Aditya Birla Nuvo executive said.

Adity Birla Nuvo is also exploring possibilities to set up a greenfield carbon black project of 60,000 tpa in western India.

"We have not identified the location for the proposed project. But, we will be starting with minimum capacity of 60,000 tpa. We are also pursuing environmental clearance for a 55,000-tpa brownfield expansion in the country," the executive said.

The carbon black business contributed Rs 175.13 crore to the company's turnover in the first quarter of the current financial year against Rs 122.26 crore for the corresponding period last year.

The company's operating profit shot up 58 per cent at Rs 34.87 crore and realisation grew 26.9 per cent owing to a change in the market mix and the partial passing on of the high CBFS (carbon black feedstock) prices to its customers.

The group, through a joint venture, produces 1,50,000 tpa furnace-grade carbon black in Thailand. Similarly, it manufactures 20,000 tpa and 12,000 tpa in Egypt and China, respectively.

Carbon black is primarily used in rubber goods such as tyres and tubes for automobiles, flaps and conveyor belts.

It is also used in the ink, pigment and plastic industries.