Oriental Carbon plans Rs 159 cr investment to expand insoluble sulfur capacity

Oriental Carbon & Chemicals Ltd (OCCL), a part of J P Goenka Group, has will invest Rs 159 crore to raise the production of insoluble sulfur by 11,000 metric tonnes per annum (MTPA) to meet the growing demands of its customers. “The board of directors of the company has approved the expansion of insoluble sulfur capacity of the company by 11,000 MTPA in two phases of 5500 MTPA each at its SEZ plant at Mundra (Gujarat). The estimated project cost is Rs 159 crores including Rs 7 crores for working capital margin,” said said Oriental Carbon & Chemicals in a BSE filing on July 31, 2015.
 
According to the company, the first phase is expected to be commenced by April 2017 followed by second phase in April 2018. Increased radialisation in tyre industry is the main demand driver for insoluble sulfur in India.
 
Oriental Carbon markets insoluble sulfur under the brand Diamond Sulf, which is mainly used by tyre and rubber industry. The company has two manufacturing facilities at Dharuhera (Harayana) and Mundra (Gujarat). In addition to insoluble sulfur, OCCL also manufactures sulfuric acid and oleums at Dharuhera.
 
OCCL, which is the only Indian company into manufacturing of insoluble sulphur, exports about 70 percent of its production to leading tyre companies.