#Didyouknow
Chemplast Sanmar is the sole producer of PVC (polyvinyl chloride) in India with micro-suspension technology?
Mega thread on talk of the town co: Chemplast Sanmar Ltd
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Chemplast Sanmar is the sole producer of PVC (polyvinyl chloride) in India with micro-suspension technology?
Mega thread on talk of the town co: Chemplast Sanmar Ltd
(RT & Like for highest reach)
#specialitychemicals #chemplast #investing
The company is the largest manufacturer of paste PVC in India and second-largest for suspension PVC (it is the largest suspension PVC player in south India).
#specialitychemicals #chemplast #investing
#specialitychemicals #chemplast #investing
Understanding PVC market:
PVC market is seeing structural changes with supply tightening which may last for long (at least 3-4 years), thus PVC manufacturers are likely to see a favourable scenario with better realisation.
PVC market is seeing structural changes with supply tightening which may last for long (at least 3-4 years), thus PVC manufacturers are likely to see a favourable scenario with better realisation.
Paste PVC (emulsion or micro-suspension) supply is affected due to limited access to micro-suspension technology, limited capacity addition, and limited availability of EDC (a chlorinated hydrocarbon used to produce PVC).
Global capacity for paste PVC is 3mtpa while demand is 2.5mtpa, which is growing at 4% p.a. The Indian market is highly dependent on PVC imports, which offers huge scope for capacity expansion. India imported 65kte of paste PVC in FY20.
CSL is a leading manufacturer of PVC resin in India, and plans to accelerate its custom manufacturing segment to capitalise on ‘China+1’ strategy, particularly for manufacturing intermediates for pharmaceutical, agrochemicals and fine chemicals.
It has manufacturing capacity for caustic soda, chloromethane, hydrogen peroxide, refrigerant gas. In the south, CSL is the third-largest manufacturer of caustic soda and has the largest capacity for hydrogen peroxide. It is the oldest manufacturers of chloromethane in India
Custom Manufacturing is the new product pipeline of the company.
Custom manufacturing refers to the exclusive manufacturing of non-commercially available molecules for a specific buyer.
These are large-scale production of a specific compound undertaken for outsourced partner.
Custom manufacturing refers to the exclusive manufacturing of non-commercially available molecules for a specific buyer.
These are large-scale production of a specific compound undertaken for outsourced partner.
Caustic soda produced across China and India would have seen huge inflation from rising coal prices as chlor-alkali (chlorine) plants use coal-based captive power plants. Further, China putting a limit on production would only add to price inflation.
Caustic soda prices have increased to Rs35-40/kg from Rs25/kg in Q1FY22. Even after adjusting higher coal prices, EBITDA from caustic soda is expected to rise significantly. Rise in caustic soda prices should drive higher production in India
Custom manufacturing has grown at a CAGR of 36% in the past three years, and CSL remains confident of maintaining ~30% revenue growth in this segment for the next few years, due to the fact that MNCs are looking for alternative partners outside of China
CSL is also focused on increasing revenues from custom manufacturing with a planned capex of Rs3.4bn over next 3-4 years.
CSL has approval to expand paste PVC capacity by 70 ktpa, although the company’s immediate plan is to add only 35 ktpa.
CSL has approval to expand paste PVC capacity by 70 ktpa, although the company’s immediate plan is to add only 35 ktpa.
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