Chemplast to invest ₹340 cr in refrigerant gas project; FY25 profitability hit by imports

Ramkumar Shankar, MD, Chemplast Sanmar Ltd.
| Photo Credit:
BIJOY GHOSH

Chemplast Sanmar, a leading player in the specialty chemicals sector, plans to invest ₹340 crore in a greenfield project for the production of R32 refrigerant gas. R32, known for its lower global warming potential compared to conventional refrigerants, is increasingly being adopted in HVAC and cooling systems worldwide.

This project, along with the ongoing multi-purpose production block (MPB) under the Custom Manufactured Chemicals (CMC) division, is part of its strategy to grow in the specialty chemicals space, the company said in a statement. The Phase 2 of the multi-purpose production block (MPB 3) is in operation from Q4 FY25, while project activities for phase 3 of MPB 3 and the civil and infrastructure work for MPB 4 are underway, it said. The company’s CMC business registered a strong performance in FY25, with a revenue growth of over 80 per cent on y-o-y basis.

Meanwhile, the Chennai-headquartered company has reported an increase in its net loss at ₹54 crore for the quarter ended March 31, 2025, when compared with a net loss of ₹31 crore in the year-ago period. However, EBITDA was higher at ₹37 crore as against ₹21 crore. Revenue from operations grew by 10 per cent to ₹1,151 crore when compared with ₹1,051 crore.

For the full year FY25 the company’s net loss declined to ₹110 crore, down from ₹158 crore. But, revenue grew by 11 per cent to ₹4,346 crore when compared with ₹3,923 crore in FY24, led by production ramp-up of new specialty chemicals capacities at Cuddalore and Berigai in Tamil Nadu.

“The EBITDA improved from ₹26 crore to ₹219 crore, largely driven by better pricing and margins in both Paste PVC and Suspension PVC (especially in the first quarter of FY25), stronger performance in the CMC segment and higher output from the new Cuddalore Paste PVC facility. However, the company’s profitability continues to be impacted by dumping of both Suspension and Paste PVC into India,” said Ramkumar Shankar, Managing Director of the company.

While ADD has been imposed on Paste PVC imports from certain countries, continued dumping from the EU has created pressure on prices. This is being investigated and the outcome is expected in the next few months. The ADD on Suspension PVC remains pending due to ongoing legal proceedings. The company remains hopeful of a favourable resolution in both proceedings, he added.