Epsilon Carbon, one of the largest exporters of specialty carbon & carbon black globally, is racing ahead with its global expansion plan. Vikram Handa, Managing Director, Epsilon Carbon shares his vision for the company... 

How has Epsilon Carbon performed financially in FY 2024-25? Key growth drivers that influenced company's revenue and profitability? 

Epsilon Carbon's financial performance in FY 2024-25 shows a period of strategic investment and market adjustments. While revenue and profitability saw a dip compared to the previous year, this was largely due to ongoing expansions and shifts in market demand. The company is focused on strengthening its asset base, increasing fixed assets to support future growth, and optimizing working capital for better efficiency. 

We are working on a few high-value specialty carbon products that are currently 100 per cent imported into India. Our new product line will serve as an import substitution for these products. Investments in sustainability-linked projects and R&D played a crucial role in enhancing the company’s long-term positioning. Despite short-term fluctuations, the company remains focused on leveraging its investments to drive sustained growth, particularly in specialty chemicals, advanced materials for EV batteries. 

Epsilon plans to invest about Rs 8,000 crores in India and USA during the next three years. Which business areas are expected to get the highest Capex allocation in terms of capacity expansion and new manufacturing plants? 

Our investments focus is on specialty carbon capacity expansion by 300,000 tons in Jharsuguda, Odisha and setting up a 30,000 graphite anode manufacturing facility in Karnataka. This also includes a 30,000 tons graphite anode manufacturing plant in North Carolina, USA. Both the India and US graphite anode facilities are currently in the permitting phase, with engineering work progressing, and construction is expected to begin early next year. The specialty carbon plant in Jharsuguda will be operational by Q3 2026. 

How is Epsilon Carbon leveraging R&D to develop advanced carbon materials for emerging industries like EV batteries and specialty chemicals? Do you also plan to invest in bio-based or circular economy-driven R&D projects? 

We are continuously innovating to meet evolving market demands while enhancing performance, efficiency, and sustainability for all our products. For Epsilon Carbon, our R&D is focused on developing sustainable carbon black solutions, and we recently launched Terrablack, which is transforming the carbon black industry for both tyre and non-tyre sectors. By utilizing recovered carbon black (rCB) and tyre-derived oil as key raw materials, we will support tire circular economy by reducing dependency on fresh feedstock while delivering high-quality solutions for tyres, rubber, and coatings. We are also researching on developing customized carbon black paste and creosote oil tailored for specific industrial applications to enhance processing efficiency and product performance. Additionally, we are also working on custom high-performance carbon black grades to meet the evolving needs of the tyre industry, focusing on sustainability, durability, and efficiency. 

In Epsilon Advanced Materials, we are focusing on developing graphite-silicon composite anodes, which can significantly improve the energy density and range of lithium-ion batteries. Our Joint Development Agreement (JDA) with Daejoo, Korea will strengthen our expertise in next-generation battery materials.  

Our R&D facility in Vijayanagar focuses on innovation in battery material research, pilot production, cell fabrication, and testing while continuously exploring new materials, techniques, and designs. Additionally, our Germany based Cathode Research Centre is pioneering in cathode material research, pilot production, and cell testing, expanding our capabilities in advanced battery technologies. 

Can you provide details on Epsilon Carbon's Rs. 15,350 crore investment in Karnataka? Expected timeline for the project and its strategic importance for the company?

We are investing Rs. 15,350 crores in Karnataka to set up a manufacturing and research facility focused on EV battery ecosystem. The project includes setting up a Rs. 9,000 crore graphite anode manufacturing facility, a Rs. 6,000 crore lithium iron phosphate (LFP) cathode plant, and a Rs. 350 crore Research and Development Centre for battery material development, testing and training. These facilities will be developed by Epsilon Advanced Materials, Epsilon CAM Pvt. Ltd., and Inspire Energy Research Centre. Our goal is to provide Domestic Value Addition (DVA) of 100 per cent for anode material and 60 per cent for cathode material to Indian cell manufacturers which will enable them to become class -1 “Make in India” producer.

These investments are expected to create over 2,000 jobs in Karnataka, contributing to regional economic growth and positioning India as a key player in the global battery materials supply chain. 

Epsilon Carbon has committed to investing Rs. 8,000 crore to develop an Integrated Carbon Complex in Odisha. Could you provide insights into the key features of this complex, its expected production capacities, and the projected impact on both local and global markets?  

Last year, we announced the Integrated Carbon Complex in Jharsuguda, Odisha, with an investment of Rs 8,000 crores spread over the next 10 years. As phase-1, we will build a 300,000-ton Coal Tar Distillation Plant by 2026. From this facility, we are set to produce several specialty oils like Anthraquinone, Carbazole & Cresols that are currently 100 per cent imported. We aim to make India more self-reliant and reduce import dependence.

 This plant will support nearby aluminium smelters while also exporting to the Middle East from our planned port in Gopalpur. Over time, we plan to build a carbon black plant and an advanced materials unit, making this one of the largest integrated carbon complexes in the world. Through this project, Epsilon Carbon aims to boost domestic production, create jobs, and contribute to India's industrial growth while expanding our global presence. 

The Karnataka manufacturing plant recently received the ISCC PLUS certification. How does this certification influence your operations, and what benefits do you anticipate in terms of market reach and customer trust? 

ISCC PLUS certification is a significant milestone in our commitment to sustainability and responsible production. This certification shows our efforts in using sustainable raw materials, lowering our carbon footprint, and ensuring full traceability across our supply chain. By meeting global environmental standards, we are strengthening our position as a leader in sustainable carbon solutions. 

This certification also allows us to expand into markets that prioritize responsible sourcing, particularly in sectors like specialty chemicals and advanced carbon materials. As sustainability becomes a key focus for global brands, our certification enhances customer confidence and positions us as a preferred supplier for companies committed to reducing their environmental impact. It also gives us an edge in regulatory compliance, helping us meet evolving industry standards and unlocking new business opportunities. 

With a Rs. 550 crore investment to expand the Vijayanagar unit's capacity by an additional 100,000 metric tons, what are the expected outcomes in terms of production efficiency and market share?  

Our carbon black capacity expansion to 100,000 metric tons is a strategic move to strengthen the production capabilities and global market position. This will increase our total carbon black capacity to 215,000 metric tons annually, enhancing supply for both tire and non-tire applications. This growth will enable us to capture a large share of the domestic and international markets, potentially increasing market share from 7 per cent to approximately 14 per cent, positioning us as the third-largest carbon black producer in India to serve the growing demand for high-quality carbon black in industries such as automotive, plastics, and specialty chemicals.

Epsilon Carbon's 2023-24 sustainability report indicates a 10 per cent reduction in greenhouse gas emission intensity, a 3.3 per cent decrease in energy intensity, and a 6 per cent reduction in water use intensity compared to the previous fiscal year. Could you elaborate on the specific strategies and technologies implemented to achieve these environmental milestones?  

One of our key initiatives was to set-up a waste heat recovery system which captures and reuses excess heat from industrial processes. These waste hot gases run a 17 MW captive power plant that powers our entire carbon complex in Vijayanagar. This has led to a 15.7 per cent reduction in Scope-1 emissions and a 14 per cent reduction in Scope-2 emissions. We also introduced the Digital Analytics for Resource and Technology (DART) Program, a digital initiative that leverages data analytics to improve operational and environmental efficiencies. By integrating digital tools into manufacturing and resource management, we have been able to monitor and optimize resource utilization more effectively. 

These sustainability-driven efforts align with India's broader climate goals and reinforce our commitment to responsible industrial practices. 

Epsilon Carbon secured Rs 100 crore in sustainability-linked funding from Standard Chartered Bank. How will these funds be allocated to further the company's sustainability goals, and what specific projects are prioritized under this funding? 

The sustainability-linked funding from Standard Chartered Bank is a big step towards strengthening our ESG commitments. This funding is mainly focused on making our operations more sustainable by reducing greenhouse gas emissions, optimizing water and energy use and improving overall efficiency. One key requirement is a third-party audit to ensure we are meeting our ESG targets, which helps keep our approach structured and transparent. 

The funds are being used for working capital and specific projects that make a real impact. For example, we are working on improving energy efficiency by monitoring steam traps to reduce energy losses. We are also investing in technology and processes that help lower our carbon footprint while maintaining high operational standards. 

Beyond the immediate impact, this funding has helped us set a clear sustainability roadmap for the next one, three and five years. It has also strengthened our collaboration with financial institutions on ESG-driven projects and opened up opportunities for more sustainability-linked financing in the future. Overall, we see this as a great step toward creating long-term environmental and economic value. 

Being the first Indian carbon black manufacturer to receive the SA8000 certification, how has this recognition influenced your company's internal policies and stakeholder relationships? 

Getting SA8000 certification is a big milestone for us, making us the first Indian carbon black manufacturer to earn this recognition. It shows our commitment to ethical business practices and worker welfare, leading to positive changes within the company and in our relationships with stakeholders. 

Inside the company, we have strengthened policies to ensure fair wages, safe working conditions, and better living facilities for our employees. Our Vijayanagar township now provides housing for over 1,800 workers and their families, creating a clean and healthy living environment. We have also taken steps to support migrant workers by helping them settle in smoothly and access essential services. 

Earning this recognition is just the beginning. We’re committed to continuously improving our policies and workplace environment, ensuring that social responsibility stays at the core of our growth.

How is Epsilon Carbon leveraging digital transformation to enhance efficiency across its operations? Are you implementing AI, IoT, and Big Data analytics in manufacturing to optimize production processes?

Our digital transformation journey, “DART,” began two years ago with an aim to enhance efficiency, automation, and innovation. We started by digitising data handling with SAP ERP, streamlining operations across key functions, and implementing a Master Data Management tool to improve data accuracy. 

In the second year, we focused on automation in Finance with enterprise asset management, auto invoicing & treasury, and tax intelligence. We improved supply chain and shop floor operations with an Energy Management System, real-time shipment tracking, and compliance management. Upgrading to SAP RISE improved integration, while analytical tools enhanced decision-making and sustainability tracking. 

This year, we are enhancing shop floor efficiency and customer experience by extending energy management, implementing a Laboratory Information Management System (LIMS), and using IoT and AI for predictive maintenance. Looking ahead, we aim to integrate AI into daily operations with Microsoft Copilot and SAP Joule while developing a data lake to leverage AI and Machine Learning for greater operational efficiency. 

Epsilon Carbon introduced a fleet of five electric trucks to its logistics operations. What has been the impact of this initiative on the company's carbon footprint, and are there plans to expand the use of electric vehicles in the future?  

Introducing 5 electric trucks into our logistics operations was a big step towards our sustainability journey. By shifting from diesel to electric, we expect to cut CO? emissions by around 127 metric tons per year, showing our continued effort to reduce our impact on the environment. Each of these heavy-duty electric trucks comes with a 258-kWh battery, providing a range of 185 Kms which is perfect for transporting raw materials like coal tar efficiently. With this move, we have become the first company in India’s carbon sector to use electric trucks for raw material logistics, setting a new benchmark for sustainable practices in the industry. 

We are actively looking at ways to expand our Electric Vehicle fleet across different parts of our operations. This is all part of our larger strategy to integrate greener technologies throughout our value chain, contributing to India’s goal of achieving net-zero emissions by 2070. 

The company's 'Sustainable Livelihood Interventions for Women' project in Sripura Village received the 'Best CSR Project of the Year 2024' award. How has this initiative impacted the local community, and are there plans to replicate similar projects in other regions?  

The ‘Sustainable Livelihood Interventions for Women’ project in Sripura Village, Odisha, has empowered over 200 women through Self-Help Groups (SHGs). By providing vocational training in phenyl manufacturing, tailoring, and agarbatti production, the initiative has helped women achieve financial independence. 

A key success story is the 'Maa Parbati SHG,' where women have successfully produced and sold phenyl bottles across Jharsuguda, boosting their confidence and economic stability. Beyond financial support, the project has encouraged leadership and community participation. 

Building on this success, we plan to expand similar programs in other direct impact regions, reinforcing our commitment to women’s empowerment and social sustainability.