India’s Chemplast Sanmar starts up specialty paste PVC plant

MUMBAI (ICIS)–India’s Chemplast Sanmar began commercial production at its new 41,000 tonne/year specialty paste polyvinyl chloride (PVC) resin facility at Cuddalore in the southern Tamil Nadu state on 27 February.

The new plant, which was set up at an investment of Rs3.6bn ($43m), has increased the company’s paste PVC capacity to 107,000 tonnes/year, a company source said.

At Mettur in the same state, the company operates a 66,000 tonne/year specialty PVC paste plant.

“The domestic demand for paste PVC is currently estimated at 160,000 tonnes/year,” the source said.

“Post expansion, the company will account for 83% of the domestic capacity and we expect to have a 66% share of the Indian market,” he added.

Key applications for specialty PVC paste in India include synthetic leather for apparel, footwear and automotive upholstery. It is also used to make vinyl gloves.

“There is a strong demand growth in PVC from the infrastructure and real estate sectors,” the source said.

“We expect this healthy demand to drive the recovery in prices and margins over the next two to three quarters,” he said, adding that India is currently heavily dependent on imports.

Separately, the company commissioned the first phase of its custom manufactured chemicals division (CMCD) in September 2023 and expects to bring the second phase on stream by June 2025, a company source said.

The CMCD project at Berigai in Tamil Nadu is being set up in two phases at a cost of Rs6.8bn, and will produce advanced intermediates for the agrochemical, pharmaceuticals and fine chemicals segments.

This project is expected to help the company expand into fine chemicals and pharmaceuticals, broaden its portfolio and access new markets and customers, the company source said.

“We commercialized three new products in September 2023 and more products are under various stages of development,” he added.

Despite the downturn in the global agrochemicals industry, Chemplast Sanmar expects reasonable growth from its CMCD business during the year, the source said.

Chemplast’s wholly-owned subsidiary Chemplast Cuddalore Vinyls Ltd operates 331,000 tonnes/year of suspension PVC capacity in Tamil Nadu.

The company also produces caustic soda, chlorochemicals, hydrogen peroxide at its three manufacturing facilities in the Tamil Nadu state and in Karaikal in the union territory of Puducherry.

($1 = Rs82.89)