Specialty chemicals manufacturer Shivtek Spechemi Industries Ltd has announced a Rs 15 crore expansion of its flagship manufacturing facility in Kurnool, Andhra Pradesh, to increase chlorinated paraffins production by 14,000 metric tonnes per annum, as rising demand from domestic and export markets stretches its existing capacity. The expansion, which will take the Kurnool plant's chlorinated paraffins operations to a significantly higher production level, is scheduled to begin commercial production by July 2028.
The project is expected to generate around Rs 100 crore in annual revenue once it reaches full utilization, strengthening the company's specialty chemicals portfolio while improving operating margins and return on capital employed. The investment reflects the robust growth outlook for chlorinated paraffins, a widely used performance additive across industries including PVC compounds, industrial coatings, flame retardants, rubber processing and high-performance lubricants.
Rising infrastructure development, robust automotive production and growing demand for fire-resistant materials have continued to drive the consumption of specialty chemicals in both domestic and international markets. The expanding use of chlorinated paraffins in PVC compounds, industrial coatings, flame-retardant applications and high-performance lubricants reflects the increasing need for advanced performance additives across construction, transportation and manufacturing sectors, reinforcing the long-term growth outlook for the specialty chemicals industry.
Expansion driven by full capacity utilizationShivtek said the decision to expand follows prolonged supply constraints at its Kurnool facility, which has been operating at 100% capacity utilization. The company indicated that its existing production has been fully committed to customer orders, creating the need for additional manufacturing capacity to meet a growing order pipeline. The Kurnool plant serves as one of the company's key manufacturing hubs for chlorinated paraffins and other specialty chemical products.
The new production line is expected to improve supply reliability for customers while enabling Shivtek to cater to higher-value applications requiring consistent quality and regulatory compliance. Managing Director Amitt Nenwani said demand for specialized performance additives has been exceeding current production allocations across both Indian and international markets.
“Operating at peak utilization has given us a clear directive—our customers need scale, fast execution and strict compliance. This Rs 15 crore investment directly addresses our existing and potential order pipeline while integrating zero-emission and energy-efficient manufacturing technologies,” Nenwani said.
Chlorinated paraffins remain a strategic productChlorinated paraffins are among the most important additives used in flexible PVC formulations, providing flame-retardant properties, plasticization and enhanced durability. They also find applications in metalworking fluids, sealants, paints and industrial lubricants, making them a critical intermediate for several downstream manufacturing sectors. India has witnessed increasing demand for chlorinated paraffins alongside the expansion of its PVC processing industry, where consumption has been driven by construction, wire and cable, flooring, pipes and consumer goods.
Domestic manufacturers have also benefited from global customers diversifying supply chains beyond traditional manufacturing centers, creating export opportunities for specialty chemical producers. Industry analysts note that specialty chemical companies are increasingly investing in incremental brownfield expansions rather than greenfield projects, allowing faster commissioning, lower capital intensity and improved returns. Shivtek's latest investment follows this strategy by leveraging existing infrastructure at Kurnool while expanding production capacity within an established product segment.
Rs 100 crore revenue potentialThe company estimates the expanded facility will contribute approximately Rs 100 crore in annual top-line revenue at full capacity, supported by strong customer off-take visibility. The relatively modest capital expenditure compared with projected revenue generation also indicates the project could deliver attractive capital efficiency once stabilized.
Beyond revenue growth, the additional capacity is expected to improve economies of scale, optimize manufacturing costs and strengthen Shivtek's position in higher-margin specialty chemical applications. The company said the project is designed to enhance both operational efficiency and long-term profitability through improved asset utilization. Commercial operations are targeted to commence in July 2028 following completion of construction, equipment installation and regulatory approvals.
Focus on sustainable manufacturingA significant aspect of the expansion is the integration of environmentally sustainable manufacturing technologies. Shivtek said the Kurnool project will incorporate zero-emission process technologies, energy-efficient production systems and stringent environmental compliance measures aimed at reducing the plant's overall environmental footprint. The company has increasingly positioned sustainability as a competitive differentiator as global customers seek suppliers capable of meeting stricter environmental, social and governance (ESG) standards.
Adoption of cleaner production technologies is becoming particularly important for Indian specialty chemical exporters supplying multinational manufacturers in Europe, North America and other regulated markets. According to the company, the upgraded facility will combine legacy chlorinated paraffin production with modern process engineering to improve energy efficiency without compromising product quality or operational reliability.
Supporting India's specialty chemicals ambitionsThe expansion aligns with the broader growth trajectory of India's specialty chemicals sector, which has emerged as one of the country's fastest-growing manufacturing segments. Rising domestic consumption, import substitution initiatives and global supply-chain diversification have encouraged chemical manufacturers to expand capacities across performance additives, intermediates and advanced materials. By increasing domestic availability of high-grade chlorinated paraffins, Shivtek aims to contribute to India's objective of reducing dependence on imports while strengthening local supply-chain resilience.
The company believes additional domestic production will also improve availability for downstream PVC processors and industrial manufacturers. Shivtek Spechemi Industries, the flagship company of the Shiva Group of Industries, operates manufacturing facilities across Andhra Pradesh, Punjab and Gujarat. Its product portfolio spans chlorinated paraffins and a range of specialty chemical solutions catering to polymer, coatings, lubricant and industrial applications.
The Kurnool expansion represents another step in the company's long-term strategy of combining capacity growth with sustainable manufacturing practices, reinforcing its position as a supplier of specialty chemicals to both domestic and international markets. With demand for performance additives continuing to outpace supply, the company expects the additional 14,000 MT capacity to strengthen customer relationships, improve export competitiveness and support its next phase of growth in India's expanding specialty chemicals industry.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
