Himadri Speciality Chemical Limited
Know the Company
Established in 1987 in Kolkata, Himadri Speciality Chemical Ltd (Himadri) is a leading Indian chemical company renowned for its advanced carbon materials and innovative chemical solutions. The company is India’s largest manufacturer of coal tar pitch and specialty carbon black, catering to diverse industries such as aluminium, graphite, lithium-ion batteries, paints, plastics, and construction, etc. Its extensive product portfolio includes refined naphthalene, sodium naphthalene formaldehyde (SNF), polycarboxylate ether (PCE), specialty oils, and anti-corrosion products.
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Himadri has established itself as a key player in the global chemical industry. The company’s manufacturing capacity for carbon black stands at 1,20,000 MTPA, while specialty carbon black has a capacity of 60,000 MTPA.
The Company has expanded its footprint globally, serving a diverse clientele across multiple continents. It operates seven state-of-the-art manufacturing facilities across India and an advanced unit in China. The company acquired Birla Tyres Ltd, jointly with Dalmia Bharat refractories for manufacturing Tyres for EV Vehicles.
Strengths
Himadri has established itself as a leader in advanced carbon material solutions and play a crucial role in lithium-ion battery production, supporting the increasing electric vehicle (EV) and renewable energy sectors in India. The company’s cutting-edge manufacturing facilities and persistent commitment to sustainability have played critical roles in its success.
As India’s largest speciality carbon black producer, Himadri commands a dominant position in the domestic coal tar pitch (CTP) and carbon black (CB) markets. The company’s ongoing expansion, diversification into advanced materials, and focus on innovation underline its strength and growth potential.
Speciality carbon black, a tailored product offering superior aesthetics, UV stability, and conductivity, is witnessing rapid growth of nearly 6% annually. This surge is fueled by increased demand for batteries, plastics, rubber products, and packaging inks as well as coatings. Himadri Speciality Chemicals is leveraging this growth by expanding its product portfolio to include solutions for synthetic fibers, food contact applications, inks, coatings, and engineering plastics, aligning with industry requirements.
Himadri’s diversification into the lithium-ion battery sector is a game-changer for the company. With a planned investment of Rs 4,800 crore, Himadri is developing a facility in Odisha to manufacture Lithium Iron Phosphate (LFP), a crucial cathode active material for electric vehicle (EV) batteries. This move positions Himadri as the first Indian company to enter this critical segment of the green energy value chain. Himadri’s focus on enhancing lithium-ion battery performance through faster charging technologies showcases its ability to align with emerging trends in the EV and renewable energy sectors. By addressing the growing demand for advanced energy storage solutions, the company is not only capitalizing on market opportunities but also contributing to India’s green energy transition.
Strong research and development (R&D) is the cornerstone of Himadri’s sustainability. With over three decades of expertise, the company has consistently introduced groundbreaking products, setting industry benchmarks in both performance and environmental care. Himadri’s NABL-accredited laboratories and a team of top-notch scientists and engineers drive innovation across sectors. The development of high-quality carbon black and advanced materials for energy storage exemplifies this team’s dedication.
The company’s strides in international markets further bolster its position. Himadri’s export of liquid coal tar pitch (LCTP) to markets in the Middle East, Australia, and South Africa marks a significant milestone. This achievement opens up vast global markets and underscores the company’s ability to deliver high-quality products on an international scale.
The collaboration with ‘Sicona’ for silicon-composite anode technology further strengthens Himadri’s portfolio in battery materials. By aligning its strategies with emerging market trends and sustainability goals, the company is poised for sustained growth and long-term success in the speciality chemicals and advanced materials industry.
Financial Performance
Himadri Chemicals reported strong Q2FY25 results, with net profit surging 35% to Rs 135 crore compared to Rs 101 crore in the same quarter of the previous fiscal. Revenue from operations also grew by 13.2%, reaching Rs 1,137 crore, up from Rs 1,004 crore in the corresponding period of the prior year. As of September 2024, the company’s net positive cash balance stood at Rs 255 crore, reflecting its robust financial health and prudent cash management.
Strategic Acquisitions
Himadri Speciality Chemical has acquired a 40% stake in Invati Creations for Rs 45.16 crore. Invati, founded by IIM Calcutta and IIT Kharagpur alumni, focuses on lithium-ion electrode materials for efficient energy storage. The acquisition includes a Rs 20 crore cash infusion as growth capital and Rs 25.17 crore through a share swap, issuing 7,96,446 equity shares of Himadri.
In October, 2023 the National Company Law Tribunal (NCLT) approved the resolution plan by Himadri and Dalmia Bharat Refractories to revive Birla Tyres. The consortium acquired the company for Rs 347 crore, with Himadri as the major investor.
Large Capacity Expansions
Himadri’s expansion in the carbon black market is another testament to its growth potential. The company is developing a 40,000 MTPA commercial plant for LFP Cathode Active Material, set to begin operations by Q3 FY27. Additionally, its new speciality carbon black line, with a 70,000 MTPA capacity, will be completed by Q3 FY26, aiming to increase its carbon black market share from 13% to 18% by FY26. The Singur facility will expand its speciality carbon black capacity from 60,000 MTPA to 1,30,000 MTPA, making Himadri the fourth-largest global producer in this segment.
The company also plans to enter the EV tyre market, with commercial production targeted within few quarters in Birla Tyre’s facilities. Modernization of the Birla Tyres unit is underway, with production resuming in phases starting next fiscal year.
Aggressive Capex
Himadri will invest Rs 220 crore to expand its speciality carbon black capacity in West Bengal, increasing output by 70,000 MTPA to meet rising European demand, especially post-EU sanctions on Russian imports. This expansion, operational within 18 months, will bring Himadri’s total capacity to 2.5 lakh tonnes. The company is also constructing an Rs 1,130 crore LFP facility in Odisha, set to launch in late 2027. This greenfield project, beginning soon, will produce 40,000 tons annually in its first phase. Himadri plans to invest total of Rs 4,800 crore over six years to produce 2,00,000 tons of LFP, aligning with the EV and energy storage market boom.
Bright Industry Outlook
The carbon black industry is experiencing robust growth, driven by trends such as fast adoption of electric vehicles (EV), infrastructure investments, and advancements in automotive and industrial applications. Carbon black plays a critical role in extending the lifespan of EV tires, which face greater stress from electric motor torque. It also improves the durability of polyethylene pressure pipes, reducing water loss and enhancing agricultural production by protecting films and pipes from UV degradation. These benefits underscore its contribution to sustainability across diverse industries.
The global shift toward climate change mitigation and India’s commitment to achieving net-zero emissions by 2070 have amplified the focus on vehicle electrification and renewable energy generation. This transformation is set to significantly boost demand for battery energy storage, with projections of rapid growth in the lithium-ion (Li-ion) battery market.
The global Li-ion battery market is anticipated to grow at an annual rate exceeding 30%, reaching over USD 400 billion by 2030, driven by mobility applications accounting for 4.3 TWh of capacity. In India, the Li-ion battery industry, valued at USD 2.5 billion in 2023, is forecasted to surpass USD 5 billion within five years. With the increasing adoption of EVs, demand for Li-ion batteries is projected to grow to 260 GWh by 2030, necessitating an additional 330 GWh of capacity by FY33. This expansion will require capital expenditure of USD 30–33 billion, positioning India as a key player in the global battery supply chain (source: Company AR). The global push to diversify supply chains and reduce dependency on specific regions creates a unique opportunity for India to emerge as a reliable alternative in the battery and carbon black markets, further strengthening its export potential.
Sector: Chemicals
Market Price: Rs. 568.35 as on today
FV: Rs 1/-
Stock Name: Himadri Speciality Chemical Ltd
BSE Code: 500184, NSE Code: HSCL
Market Cap.: Rs 29200 Cr
Book Value: Rs. 69.1
Segment: Carbon materials and Specialty chemicals
Incorporation: 1987
Headquarters: Kolkata, India
