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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.

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.

  • Capex decisions are a bet on future demand; the market rewards or punishes them on whether the returns look credible.
  • Sectors in the story: Chemicals.

Chemicals

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Chemicals