Coal-tar pitch and carbon black maker Himadri Speciality Chemical Ltd would invest Rs 1,000 crore for setting up a greenfield plant in West Bengal, a top company official said today.
The new unit would come up at its existing facility at Mahistikry in Hooghly district, and manufacture high-end speciality carbon black.
"We will invest Rs 1,000 crore in phases to set up a new plant to manufacture around 40 high-end grades of speciality carbon black with a terminal capacity of two lakh ton per annum (tpa)," CEO of Himadri Speciality Chemical Anurag Choudhury said.
He said that the plant would make raw materials used in the manufacture of racing tyres, moulded luggage and the plastic industry.
"There is hardly any big player in India in this segment. These speciality chemicals were being imported from the USA and Germany. Our products will be of import substitution by nature," Choudhury said.
He said the company would also export speciality carbon black to north America, Europe, Asia and the Middle East markets.
Following achievement of full capacity at the new plant, Himadri Speciality Chemical would accrue an incremental revenue of Rs 2,500 crore to Rs 3,000 crore per annum, and provide direct and indirect employment to around 1,500 people, the CEO told reporters here.
The project, to be funded mainly through internal accruals and a small portion of debt, would be completed within five years, Choudhury said.
With a market capitalisation of USD 1 billion, the company was expecting a turnover of Rs 2,200 crore in the fiscal 2017-18, he added.
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