Himadri Speciality Chemicals plans ₹1,613 crore capacity expansion across key businesses
A capex & expansion development with market-wide reach.
· LiveMint Markets, BS Companies
Himadri Speciality Chemicals plans to invest ₹ ₹1,125 crore in lithium iron phosphate (LFP), ₹ ₹248 crore in Speciality chemicals, ₹ ₹70 crore in carbon nanotubes and ₹ ₹170 crore in super speciality carbon black, according to its investor presentation for the July-September quarter.
The analysis
This is a Capacity / capex event. Capacity added into a soft cycle compresses returns for the whole sector; added into a tight one it is the cheapest growth available. The cycle position matters more than the announcement.
Why it matters
- Capex decisions are a bet on future demand; the market rewards or punishes them on whether the returns look credible.
Market context
- Sectors in the story: Chemicals.
Chemicals
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In this story
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