Himadri Speciality Chemical expects its profit after tax (PAT) to double to ?1,100 crore by 2027-28 (FY28), driven by an expansion into battery materials and a strategic push into global markets.
The company recently incorporated a new entity in Dubai to serve as a gateway to Africa, Europe, the Middle East, and West Asia.
According to Anurag Choudhary, Chairman and Managing Director of Himadri Speciality Chemical, this platform will showcase new advanced chemistry materials to global customers. The strategic location will bring the company into closer proximity with its international client base while helping to source critical minerals and feedstock on a sustainable basis.
This global positioning aligns with the ongoing "China Plus One" strategy, which has prompted active discussions among global customers looking to diversify their supply chains. However, the company views the opportunity as broader than merely substituting Chinese suppliers, focusing instead on a rapidly growing global market for lithium-ion cell components.
"What Himadri brings to a table is not product, it's an integrated solution provider for lithium-ion cell companies and that is the strength on which we are building," Choudhary explained. He said success in this space requires technology, an understanding of industry requirements, and the scale necessary to serve global customers.
A central pillar of this growth is the anode materials segment. The global market for anodes, currently estimated at 1.6 million tonne, is projected to reach four million tonne by 2030-2031 as global battery capacity exceeds four terawatt-hours.
The management is targeting a 2% to 3% share of this expanding market over the next five years. The company is positioning itself with a unique hybrid portfolio encompassing natural graphite, silica, synthetic graphite, and silicon-carbon materials.
Synthetic anode is increasingly replacing natural anode year by year, providing a major competitive advantage. A 200-metric-tonne commercial trial plant is already operational, utilising in-house raw materials to ensure backward integration and full self-dependence. As production scales up, battery materials—encompassing both anodes and cathodes—are projected to contribute 40% to 50% of total revenues.The shift toward high value-added products is expected to drive profitability higher in a phased manner over the next five to six years.
The current return on capital employed stands at 30%, which is projected to strengthen further as new capacities stabilise. This margin expansion is behind the target to double the current operations' profit after tax from ?555 crore in 2024-25 (FY25) to ?1,100 crore by FY28.
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Alongside the core specialty chemicals business, subsidiary Birla Tyres is slated to generate ?600 crore in revenue this year. The subsidiary is expected to turn earnings before interest, taxes, depreciation, and amortisation positive next year, with a long-term target of reaching a ?3,000 crore top line within four to five years.
Kolkata-based Himadri Speciality Chemical’s shares have gained nearly 41% over the past year, while the company’s market capitalisation stands at around ?32,984 crore.
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