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Phillips Carbon Black plans overseas R&D centre

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Facility may help find new applications, diversified products

Phillips Carbon Black Ltd. (PCBL) is planning to set up an overseas R&D centre, its chairman Sanjiv Goenka said.

This centre is likely to help the company find new applications and a diversified product mix for the carbon black that PCBL produces across its four plants in India. It plans to double the share of value-added products to 15% in two years. Indications were that the R&D centre may be located in Europe and could be either a new unit or acquired.

Carbon black, mostly consumed by the tyre industry, is used in rubber as a reinforcing agent and in plastics, printing inks, coatings, sealants, and a variety of other products for pigmentation, electrical conductivity, and UV protection.

Addressing the media after announcing PCBL’s third-quarter results, which showed a 92% post tax profit growth to ₹108.6 crore, Mr. Goenka said that value-added products and speciality carbon black grades were among the factors that helped PCBL report its highest quarterly turnover. A 175 % interim dividend had also been announced.

Capacity expansion

It is learnt that PCBL is also planning expansion of the 1.6-lakh tonne capacity of its unit at Durgapur from where it started operations in 1962. This may come next year.

The 56,000-tonne capacity addition at its Mundra plant had been completed, while the 32,000-tonne expansion project at Palejwould be commissioned by December, Mr. Goenka said.

The ₹350-crore capacity expansion on these projects would take PCBL’s capacity to 6.19 lakh tonnes, he added.The firm is among the world’s top 10 carbon-black producers.

PCBL, which has a unit in Kochi , Kerala and an R&D centre at Palej, is yet to finalise the location of a second Southern unit.

“We need another southern unit. The choice is between Tamil Nadu, Andhra Pradesh and Telangana. We plan to finalise by March,” he said.

On the results, he said that the 54 % rise in revenues to ₹949.9 crore and improved profitability had come through better focus on value-added products, customers, especially high-value customers, and correct international sourcing of its raw materials. “We have taken 14 measures aimed at improved efficiency, cost saving, improved logistics and better product-mix,” he said.

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Printable version | Dec 7, 2019 7:12:14 PM | https://www.thehindu.com/business/phillips-carbon-black-plans-overseas-rd-centre/article26006854.ece

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