Chennai, May 14 (PTI) Specialty chemicals company Chemplast Sanmar Ltd will establish a manufacturing facility to produce refrigerant gas at an investment of Rs 340 crore, a top official has said.
The proposed greenfield project, along with the ongoing multi-purpose production block facility in Tamil Nadu under the Custom Manufactured Chemicals (CMC) business, reinforces the company’s strategy to expand in the specialty chemicals space.
The city-based company declared its financial results for the fiscal year ending March 31, 2025.
Chemplast Sanmar Ltd reported a net loss of Rs 54 crore for the January–March 2025 quarter, compared to a net loss of Rs 31 crore during the corresponding quarter of the previous financial year. The profitability was impacted due to imports of suspension and paste PVC (polyvinyl chloride) into India, managing director Ramkumar Shankar said.
Revenue during the quarter under review grew to Rs 1,151 crore, compared to Rs 1,051 crore in the same quarter last year.
"The company is pleased to announce a greenfield capex of Rs 340 crore for the production of R32 refrigerant gas. This project, along with the ongoing multi-purpose production block expansion in Cuddalore, reinforces our strategy to grow in the specialty chemicals space," Shankar said.
On the financial performance, he added, "During FY25, the company improved its performance compared to FY24, with sales increasing by 11 per cent to Rs 4,346 crore in FY25 from Rs 3,923 crore in FY24. This growth was led by the ramp-up of new specialty chemicals capacities at Cuddalore and Berigai, Tamil Nadu."
"EBITDA improved from Rs 26 crore to Rs 219 crore, largely driven by better pricing and margins in both paste PVC and suspension PVC, stronger performance in the CMC segment, and higher output from the new Cuddalore paste PVC facility.
However, profitability continues to be impacted by the dumping of both suspension and paste PVC into India," Shankar noted.
He said the company remains optimistic about stronger demand and improved pricing, coupled with higher volumes from inventory liquidation and consistent operations at higher rates in the newly expanded capacities, supported by policy measures.