The Indian chemical industry is on a robust growth trajectory, projected to reach $304 billion by 2025. This expansion is driven by rising domestic demand and export potential, with major companies increasing capacity to meet growing needs across various sectors.
Here is a list of three such chemical companies with high-capacity expansion plans:
Deepak Nitrite Limited
Deepak Nitrite Limited is a leading Indian chemical manufacturer, known for its wide array of chemical intermediates. Their offerings include organic and inorganic chemicals, agrochemicals, and specialty chemicals.
With a market capitalization of Rs.40,894 crore, Deepak Nitrate Limited’s share price closed at Rs.2,939 per share on Friday, down 2 percent from its previous close.
Deepak Nitrite is committed to a Rs.14,000 crore investment plan, with several projects nearing completion. This includes initiatives in MIBK, nitric acid, enhanced nitration, hydrogenation, and specialty chemicals, with approximately Rs.2,000 crore expected to be commissioned this financial year.
Additionally, a new R&D center in Vadodara, aimed at boosting innovation capabilities, is scheduled to be completed by the end of FY25.
Linde India Limited
Linde India Ltd. is a leading industrial gas company in India, operating over 33 production facilities and the country’s largest air separation plant. As a subsidiary of Linde Plc, it supplies a wide range of gases and related services across various sectors.
With a market capitalization of Rs.63,457 crore, Linde India Limited’s share price closed at Rs.7,427 per share on Friday, 0.28 percent down from its previous close.
Linde India operates over 100 air separation units (ASUs), including the largest at Jamnagar with a capacity of 5 x 5,250 TPD (tonne per day). A new 1,000 TPD ASU is under construction at the Rourkela steel plant and is expected to be operational by 2026.
Linde India recently announced a deal with Tata Steel Ltd to acquire industrial gas assets, including two 1,800 TPD air separation units (ASUs) from Tata Steel’s Kalinganagar phase two expansion project.
The company is also expanding with projects like the Instant Quick Freezing plant in Andhra Pradesh, aimed at enhancing its food processing services.
Neogen Chemicals Limited
Neogen Chemicals Limited focuses on producing specialty chemicals, including bromine-based compounds, lithium salts, and Grignard reagents, catering to industries like pharmaceuticals and agriculture.
With a market capitalization of Rs.3,932 crore, Neogen Chemicals’ share price closed at Rs.1,460.9 per share on Thursday, down 2.13 percent from its previous close.
A new capacity of 400 MTPA is being developed for lithium electrolyte salts and additives. Of this, 200 MTPA has been commissioned with initial approved material shipped to customers, and trial production for the remaining 200 MTPA has started.
At the Dahej facility, a plant will produce 2,000 MT of electrolytes. Currently, 200 MT has been commissioned, with trial supplies sent to three customers.
In FY25, production is set to increase to 4,500 MT, with further expansion to 33,000 MT by FY26. The total CAPEX is Rs.1,500 crore, with peak revenue potential estimated between Rs.2,500 and Rs.2,950 crore, depending on lithium prices.
Written by – Siddesh S Raskar
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