Ramkumar Shankar, who is the Managing Director of Chemplast Sanmar Ltd, is planning to invest a whopping ₹340 crore in a new greenfield project for producing R32 refrigerant gas. This gas is gaining popularity due to its lower global warming potential compared to other refrigerants, making it a hot commodity in HVAC and cooling systems globally. The company is also working on expanding its Custom Manufactured Chemicals (CMC) division with a multi-purpose production block (MPB) project, demonstrating its commitment to growing in the specialty chemicals sector.
The Phase 2 of the MPB project, known as MPB 3, has already begun operations in the fourth quarter of FY25. Additionally, the company is actively working on phase 3 of MPB 3 and the civil and infrastructure development for MPB 4. The CMC business has shown impressive growth in FY25, with a revenue surge of over 80 per cent year-on-year. Despite these positive developments, Chemplast Sanmar Ltd reported a higher net loss of ₹54 crore for the quarter ending on March 31, 2025, compared to ₹31 crore in the same period last year. However, there was an improvement in EBITDA, which rose to ₹37 crore from ₹21 crore. Revenue from operations also saw a 10 per cent increase, reaching ₹1,151 crore from ₹1,051 crore.
In the broader picture, the company’s net loss for the entire FY25 decreased to ₹110 crore from ₹158 crore, while revenue grew by 11 per cent, totaling ₹4,346 crore compared to ₹3,923 crore in FY24. Ramkumar Shankar pointed out that the EBITDA saw a significant improvement, jumping from ₹26 crore to ₹219 crore. This boost was primarily attributed to better pricing and margins in Paste PVC and Suspension PVC, especially in the first quarter of FY25, along with a strong performance in the CMC segment and increased output from the new Paste PVC facility in Cuddalore. However, the company’s profitability continues to be impacted by the dumping of Suspension and Paste PVC products into India. Shankar expressed hope for a positive outcome in the ongoing investigations regarding dumping practices and the pending Anti-Dumping Duty (ADD) on Suspension PVC imports. The company is optimistic about resolving these issues in the coming months.
Alright, so I’m not really sure why this matters, but Chemplast Sanmar Ltd, led by Ramkumar Shankar, is going all-in with a massive ₹340 crore investment in a new project to produce R32 refrigerant gas. Apparently, this gas is the new cool kid on the block in the HVAC and cooling systems world because of its lower global warming potential. The company is also juggling multiple projects like the MPB stuff and seeing some crazy revenue growth in its CMC business. But hey, despite all the good news, they still managed to rack up a higher net loss in the last quarter. Maybe it’s just me, but it seems like they’re playing a high-stakes game in the specialty chemicals arena.