Phillips Carbon Black to set up 1,50k-tonne unit in South India

Phillips Carbon Black to set up 1,50k-tonne unit in South IndiaPhillips Carbon Black (PCBL), India’s largest carbon black producer and exporter has shortlisted three locations, Tamil Nadu, Andhra Pradesh and Telangana for its 1,50,000-tonne carbon plant. The new plant will have an investment of Rs 600-620 crore.

There have been indications that Telangana is a favoured location, according to PCBL, a RP Sanjiv Goenka Group firm.
“While we prefer a coastal location, Telangana has made a very good offer,” said Group Chairperson Sanjiv Goenka. “We do not have any unit in south India,” he said, adding that the group owned some 120 acres in Ennore, Tamil Nadu.

Factors such as proximity to a port, user industries such as automobile units and fiscal incentives would help decide the location “within a couple of months,” according to Goenka. PCBL is also planning to invest Rs 300 crore on brownfield expansion at its units in Palej and Mundra, Gujarat. Expected to be ready by fiscal 2019, the expansion will take PCBL’s capacity to 5.6 lakh tonnes from the current 4.8 lakh.

It also has one unit each in Durgapur, West Bengal, and in Kochi, Kerala. PCBL recorded a 96% capacity utilisation during the second quarter boosting profitability. Net profit increased fourfold to Rs 50.8 crore from Rs 12.5 crore a year earlier. PCBL would increase production of the high-value speciality carbon black which has rubber and non-rubber applications.