Page 130 - CW E-Magazine (29-4-2025)

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DIVERSIFICATION

Matix Fertilisers plans IPA unit in West Bengal

Urea maker, Matix Fertilisers and manufacturing plants and are proud to
Chemicals, has announced plans to be the largest single-stream fertiliser
enter the industrial and speciality company in Eastern India,” said Mr.
chemicals sector with an investment Nishant Kanodia, Chairman of Matix
of over Rs. 2,600-crore. This includes Fertilisers and Chemicals Ltd. “This
the establishment of eastern India’s new venture into industrial and specia-
fi rst Iso-Propyl Alcohol (IPA) plant in lity chemicals will utilise our existing
West Bengal. infrastructure and expertise to meet the
growing domestic demand. It aligns
The proposed IPA facility, with an programme, Matix stated. The new with our strategic vision to diversify
annual capacity of 50,000 tonnes, will facility is expected to begin opera- responsibly into high-growth sectors
be located at the company’s existing tions in FY27, it added. beyond fertilisers.” Mr. Kanodia is the
site in Panagarh Industrial Park, which son-in-law of Essar Group Vice Chair-
already hosts a 1.27-million tonnes per The company’s move into chemi- man Mr. Ravi Ruia.
annum urea plant. Apart from urea, the cals follows a study conducted in part-
company manufactures diammonium nership with McKinsey & Company. With a revenue of more than
phosphate and nitrogen, phosphorus To ensure a steady supply of acetone, Rs. 7,000-crore in 2023-24, Matix Fer-
and potassium (NPK). a key raw material for IPA, Matix has tilisers is one of the leading producers
signed a memorandum of understand- of fertilisers in eastern India, where it
IPA is a critical raw material in ing with AdPlus Chemicals and Poly- commands a 20% market share. It also
the production of pharmaceuticals mers Pvt. Ltd., a subsidiary of Haldia caters to Uttar Pradesh, Haryana and
and personal care products. This ini- Petrochemicals Ltd. Punjab. In India, IPA is manufactured
tiative will increase domestic pro- by companies such as Deepak Ferti-
duction of IPA and contribute to the “We have a proven track record lisers and Petrochemicals Corporation
government’s Atmanirbhar Bharat in building and operating large-scale and Hemadri Chemicals.

TRADING TROUBLES
Govt. studying impact of US tariffs on chemicals,

petrochemicals sector

The government is still assessing week after announcing the higher sub-segments might be exempt, soften-
the impact of US tariffs on the coun- rate on April 2. The government will ing the impact.
try’s chemicals and petrochemicals determine measures after discussions
industry. “We are still studying. We with industry players, Ms. Verma The US tariffs on Chinese chemi-
are in touch with the industry and try- added. cals have also triggered concerns about
ing to assess how it will impact our dumping, as Chinese fi rms facing eco-
industry,” news agency PTI quoted According to industry data, chemi- nomic slowdown and surplus capacity
Chemicals and Petrochemicals Sec- cals constitute about 18% of India’s may fl ood India and other global mar-
retary, Ms. Nivedita Shukla Verma total exports to the US, with FY24 exports kets with cheaper products, potentially
as saying on the sidelines of a brain- valued at around $5.7-bn. India Ratings depressing global chemical prices. Ear-
storming session held in New Delhi and Research estimates the tariff hike lier, at the brainstorming session, Ms.
recently. could reduce chemical exports by $2-7- Verma emphasised fostering long-term
billion in FY26. Indian petrochemical development of the Indian chemical
US President Donald Trump on exports to the US, valued at approxi- sector, including discussions on infra-
April 9 reduced a planned 26% mately $4-bn in 2024, may see reduced structure development specifi cally tai-
reciprocal tariff to 10%, just one demand, though some petroleum oil lored for the chemical industry.

130 Chemical Weekly April 29, 2025

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