Capacity expansion in the works for Phillips Carbon Black
Phillips Carbon Black has announced carbon black capacity at Palej and Mundra in Gujarat, India will be increased by 80,000 tons per year by the end of fiscal 2019. The Rs 300 crore investment will enhance capacity of existing units by 17%, media said.
Company chairman Sanjiv Goenka said the business is also evaluating sites for a greenfield project that will have capacity of 120,000 tons per year with no timeframe in mind. Goenka told local media: “We have land in Tamil Nadu but Andra Pradesh is also being considered for a possible location. The company will take a final call in the next few months.” Proximity to the port and tyre manufacturers, land prices and the incentive package of the local government will be considered before making a decision, the company said.
Goenka added: “Ideally, we want to be close to the customers. We are in discussions with tyre firms about their expansion plans, most of which are in South India. We can hold stock for them, offering just-in-time inventory management.” In Q1, Phillips Carbon Black reported a four-fold jump in net profit for the April-June quarter, its best quarterly show. Net profit was Rs 48.16 crore compared with Rs 9.5 crore profit registered in the same period last year. “Higher capacity utilization, cost rationalization and focus on specialty carbon led to increased profitability,” Goenka said.