Chemplast Sanmar to establish refrigerant gas plant with Rs 340 cr capex

CHENNAI: Specialty chemicals behemoth Chemplast Sanmar is planning to set up a greenfield refrigerant gas plant which will involve a capex of Rs 340 crore, as per a top official.

"This project, along with the ongoing MPB (multi-purpose production block) expansion under the CMC (custom manufactured chemicals) business, reinforces our strategy to grow in the specialty chemicals space," company MD Ramkumar Shankar has said.

The second largest producer of suspension PVC in India (through its wholly-owned subsidiary) reported a net loss of Rs 54 crore for the January–March 2025 quarter, compared to a net loss of Rs 31 crore during the corresponding quarter of the previous financial year.

However, “during FY25, the company has improved its performance as compared to FY'24 with sales increasing by 11 per cent from Rs 3,923 crore in FY'24 to Rs 4,346 crore in FY'25, led by production ramp-up of new Specialty Chemicals capacities at Cuddalore and Berigai, Tamil Nadu. The EBITDA improved from Rs 26 crore to Rs 219 crore, largely driven by better pricing and margins in both Paste PVC and Suspension PVC (especially in the Q1 of FY'25), stronger performance in the CMC segment and higher output from the new Cuddalore Paste PVC facility," Shankar said.

But, the company’s profitability continues to be impacted by dumping of both suspension and paste PVC into India.

As per the company, Indian demand for suspension PVC surged by around 8 per cent to 4.3 million mt in FY'25 while paste PVC demand rose by 11 per cent to 178 kt.

Shankar also said the company remains optimistic about stronger demand and improved pricing, coupled with higher volumes from inventory liquidation and consistent operations at higher rates in the newly expanded capacities, supported by policy measures.