The company is now the second largest carbon black manufacturer in the country after the RPG group's Phillips Carbon Black. Phillips Carbon has an installed capacity of 120,000 tonne per annum.

The new plant, set up at an investment of Rs 135 crore, is located at Gummidipondi, near Chennai.

Indian Rayon enjoys the best operating margins in the industry and the new plant is expected to further improve its operating profits, director BL Shah said in a statement.

The Aditya Birla group, which also includes several joint ventures in the south-east Asian countries, is the world's sixth largest producer of carbon black. Carbon Black is used in industries like tyre, printing ink, coatings, plastics, fibres and paper.

The new plant near Chennai will cater primarily to users inthe southern and western markets. The plant's coastal location gives it manifold advantages like low freight for raw material imports, low distribution cost due to the proximity to some of the larger tyre companies, Shah said.

Plans are also afoot to establish a research and development (R&D) centre where research will be veered towards developing innovative products.

Equipped with environment-compatible technology, the plant ensures zero pollution, the company claimed. Off gases and the surplus steam that it generates will be converted into power and supplied to the Tamil Nadu Electricity Board.