Epsilon Carbon to set up Rs 900-crore Karnataka facility

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March 7, 2020 12:40 AM

The current installed carbon black manufacturing capacity in the country is about 10 lakh tonne per annum. The major players in the sector are RP-Sanjiv Goenka Group’s Phillips Carbon Black and Aditya Birla Group’s Birla Carbon.

The facility will gradually expand to over 3 lakh tonne per annum by FY24, with an additional investment of about Rs 475 crore.

Epsilon Carbon will invest Rs 900 crore in setting up an integrated carbon black facility in Bellary, Karnataka, the company said on Friday. The facility is expected to be commissioned by Q3FY21 with an initial capacity of 1.15 lakh tonne per annum, requiring an investment of Rs 425 crore. The facility will gradually expand to over 3 lakh tonne per annum by FY24, with an additional investment of about Rs 475 crore.

The company currently operates a 2.2 lakh tonne per annum coal tar distillation facility that caters to the pitch demand in the aluminum industry. For its carbon black operations, the company will use waste coke oven gas from JSW Steel’s Vijaynagar and Dovi steel plants as fuel, Vikram Handa, managing director of Epsilon Carbon, told FE. Handa is the son-in-law of Sajjan Jindal, chairman, JSW Group.

Tyre industry is a leading consumer of carbon black products where it is used as a reinforcing filler to improve longevity. Handa said while the firm is eyeing to supply most of its products to the tyre and rubber industries in south India, it also plans to export 25% output to Vietnam, Indonesia, Nepal and Bangladesh, among others.

“With its captive low sulphur feedstock, will have the lowest SOx/NOx emission levels which are much below the current carbon black manufacturing facilities in India,” he added.

The current installed carbon black manufacturing capacity in the country is about 10 lakh tonne per annum. The major players in the sector are RP-Sanjiv Goenka Group’s Phillips Carbon Black and Aditya Birla Group’s Birla Carbon.

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