PCBL Announces 7,90,000 MTPA Expansion In Manufacturing Capacity

Phillips Carbon Black Limited (PCBL), a member of the RP Sanjiv Goenka Group, announced its expansion plans during the 62nd Annual General Meeting. The company is embarking on two projects: a greenfield expansion in Chennai, Tamil Nadu, and a brownfield project in Mundra, Gujarat. These expansions aim to increase carbon black capacity, add green power generation, and enhance specialty chemical production. PCBL is also investing in research and development (R&D) centers in India and Belgium, as well as focusing on digital transformation.

Phillips Carbon Black Limited (PCBL) Expands Manufacturing Capacity and Focuses on Innovation and Global Growth

PCBL has successfully commissioned the first phase of the greenfield expansion in Chennai, which adds 63,000 metric tons per annum (MTPA) of carbon black capacity and 24 MW of green power. The Mundra brownfield expansion, divided into two phases, is expected to have a specialty chemical capacity of 40,000 MTPA, with the first phase projected to be commissioned by Q1 FY 2023-24. These expansions will raise the company’s total manufacturing capacity to 790,000 MTPA and green power generation capacity to 122 MW.

Manufacturing Plants:

PCBL’s manufacturing plants are located in Durgapur (West Bengal), Palej & Mundra (Gujarat), Kochi (Kerala), and Chennai (Tamil Nadu). With the addition of the Chennai plant’s first phase, the company’s current manufacturing capacity is 666,000 MTPA. Additionally, PCBL has a green power generation capacity of 98 MW.

Investment in R&D and Innovation:

PCBL is investing in its R&D center in India and an innovation center in Belgium. These facilities, together with the Process Technology team, enable the company to expand its product portfolio and develop new and improved grades of performance and specialty chemicals. The company focuses on various segments, including tyres, inks & coatings, engineering plastics, fibres, conductives, and batteries.

Global Expansion:

PCBL aims to penetrate new geographies and expand its global footprint. The company is actively exploring emerging opportunities in untapped markets. To achieve this, PCBL emphasizes delivering cutting-edge products, impeccable service, and strong technical support to acquire new customers and nurture long-term relationships.

Digital Transformation:

PCBL is driving a transition from digitization to digitalization across various functions to improve efficiency, optimization, and data monitoring.

Growth Against Challenges:

PCBL recorded a Profit After Tax (PAT) of Rs 444.09 crore during FY 2022-23, a 4% increase from the previous financial year. Net sales reached Rs 5,873.89 crore, a 32.1% growth compared to FY 2021-22. The company’s EBITDA stood at Rs 774.84 crore. PCBL also declared an interim dividend of Rs 207.60 crore during the same period. Despite challenges such as rising inflation, climate issues, supply chain disruptions caused by the war in Ukraine, and the re-emergence of COVID-19 in China, PCBL’s performance can be attributed to capacity expansions, R&D focus, and global market growth.

Mitigating Economic Slowdown:

To address the effects of economic slowdown, PCBL’s strategy includes optimizing operational costs, stricter control over capital expenditure, and maintaining efficiency across all functions. The company aims to adapt quickly and implement actions aligned with its strategy to ensure success in the future.

Conclusion:

Phillips Carbon Black Limited (PCBL) has demonstrated its commitment to growth and innovation through its expansion projects, investment in R&D, and global expansion efforts. The successful commissioning of the greenfield expansion in Chennai and the upcoming brownfield expansion in Mundra will significantly increase PCBL’s manufacturing capacity and green power generation. The company’s investment in R&D centers in India and Belgium showcases its dedication to developing new and improved products for various industries. Additionally, PCBL’s focus on digital transformation will drive higher efficiency and data monitoring across its operations.

Despite facing challenges such as global economic setbacks and supply chain disruptions, PCBL has achieved commendable financial performance, with increased profit and net sales. The company’s strategy to optimize operational costs and maintain efficiency positions it well to mitigate the effects of economic slowdown.

PCBL’s emphasis on delivering cutting-edge products, impeccable service, and strong technical support will enable it to penetrate new markets and foster long-term customer relationships. With a solid foundation of manufacturing capabilities, innovation, and global expansion, PCBL is poised for continued success in the evolving carbon black industry.