CHENNAI: The Sanmar Group is sharpening its strategic focus across core businesses while marking a milestone in the region’s maritime landscape with the acquisition of what is likely Chennai’s first oil tanker, even as chairman Vijay Sankar flagged Chinese overcapacity and dumping as a structural challenge for the chemicals industry.
Sankar told DT Next that the vessel, Sanmar Herald, is “probably” the first oil tanker linked to Chennai. At a time of heightened geopolitical uncertainty, the development is significant considering the disruptions in key crude routes due to the ongoing West Asia conflict. “India needs Indian-flagged ships, so we thought we should do our bit,” he said, adding that global volatility has reinforced the need for greater control over energy logistics.
The Sanmar Herald is a double-hull VLCC and the largest in the group’s fleet which takes Sanmar Shipping past the 1 million tonne deadweight (DWT) milestone, strengthening its ability to transport crude efficiently across domestic and global routes.
Even as the group expands in shipping, Sankar flagged Chinese dumping as a critical structural risk for its core chemicals business, particularly PVC. He pointed to a widening gap between India’s upstream and downstream capacities, driven in part by cheap imports.
India needs Indian-flagged ships, so we thought we should do our bit... The world is very volatile… with tariffs, new governments and Chinese oversupply.. We hope this war ends fast–Vijay Sankar, chairman, Sanmar Group
“Fifteen to twenty years ago, India’s PVC capacity was around 1.5–2 million tonnes, and pipe demand was roughly similar. Today, pipe capacity has grown to about 4.5 million tonnes, but upstream PVC resin capacity has remained largely stagnant,” he sought to point out.
This divergence, he argued, is a direct outcome of sustained dumping. “The downstream has grown with Indian industry, but the upstream hasn’t… we just want a level-playing field,” Sankar said.
Chinese producers, he went on to add, often “price below cost and send products all over the world,” distorting trade and disincentivising fresh investments in capital-intensive upstream sectors.
The result is an increasing import dependence for a critical industrial input, even as domestic consumption expands. Industry has been seeking anti-dumping measures to correct this imbalance and enable local capacity creation, particularly in segments such as PVC resin where scale and capital requirements are high.
Sankar said the issue is not limited to chemicals but cuts across sectors. “It has distorted trade principles,” he said, noting that industry representations to the government are ongoing.
Despite these challenges, Sanmar continues to invest across its five core verticals namely chemicals, specialty chemicals, engineering, shipping and foundry, while recalibrating strategy in response to global shifts. “The world is very volatile… with tariffs, new governments and Chinese oversupply,” he said. “We hope this war ends fast.”
However, he sees long-term opportunity in supply chain realignments. “Nobody wants to be dependent on one country in a geopolitically volatile situation… it will definitely happen,” he said, referring to the China-plus-one strategy gaining traction across specialty chemicals and manufacturing.
As Sanmar scales up across businesses, its oil tanker foray marks a milestone for Chennai’s maritime ambitions, even as it navigates global trade distortions and pushes for a more level-playing field at home.