Last updated : August 18, 2026 7:34 am
Increasing capacity from 150,000 MTPA to 650,000 MTPA is not just about scale, but about repositioning the portfolio towards high-value, application-driven products
Shivtek Group has grown from 75 MT to 1, 50,000 MT over three decades. What were the most critical turning points in this 2,000-fold production increase?
Our journey from 75 MT to 150,000 MT has been anchored in a series of deliberate strategic choices rather than linear expansion, rooted in three defining pillars of - diversification, integration, and globalization. Early on in the business, we moved beyond commodity chemicals into specialty and performance chemicals, which significantly improved value realization.
A major turning point was our timely and sustained investment in chlorinated chemistry, where we built depth in process capabilities and product applications. This was complemented by backward integration initiatives that improved supply reliability and cost efficiencies. The third critical lever has been our export-led growth strategy.
By building a diversified global customer base across 75+ countries, we reduced concentration risks and aligned ourselves with evolving international demand for high-quality specialty chemicals.
The Group is executing Rs. 650 crore expansion plan into Gujarat and Rajasthan, which aims to quadruple capacity from 1, 50,000 MTPA to 6, 50,000 MTPA. How does this specific investment align with FY 2028-29 vision of reaching Rs. 5,000 crore revenue target?
Our Rs. 650 crore expansion plan across Gujarat and Rajasthan is a strategic enabler for our next phase of growth. Increasing capacity from 150,000 MTPA to 650,000 MTPA is not just about scale, but about repositioning the portfolio towards high-value, application-driven products. The global specialty chemicals market is witnessing a structural shift toward sustainable, compliant, and performance-oriented solutions, and this capacity expansion allows us to contribute more meaningfully towards the transformation.
Our FY 2028-29 vision of achieving Rs. 5,000 crore in revenue is therefore underpinned by a combination of volume growth, product premiumization, and deeper penetration into regulated and high-growth markets.
Why were Hazira (Gujarat) and Rajasthan specifically chosen for these new units, and how will proximity to the Hazira port influence your global export strategy?
The choice of Hazira and Rajasthan reflects a multi-dimensional evaluation of logistics, ecosystem readiness, and long-term scalability. Hazira, with its proximity to a major port and established industrial infrastructure, offers a significant advantage in terms of export efficiency and supply chain agility.
Rajasthan complements this with access to land, policy support, and connectivity, enabling us to build large-scale, future-ready manufacturing assets. This dual-location strategy strengthens our ability to serve both domestic and international markets with greater responsiveness and cost efficiency.
With the massive jump to 6, 50,000 MTPA, how do you plan to manage the potential "moderate scale" operational risks noted in recent CRISIL Ratings?
Scaling to 650,000 MTPA introduces complexity, but also an opportunity to embed next-generation operational practices. We are adopting a phased commissioning approach, supported by advanced process control systems, digital monitoring, and automation. In parallel, we are strengthening organizational capabilities through training programs, scaling our leadership expertise, and standardized operating frameworks. This ensures that growth does not come at the cost of consistency, quality, or safety.
How do you plan to sustain operating margins (currently targeted at 9–9.5%) against the backdrop of volatile crude oil derivative prices during this high-growth phase?
Raw material volatility, particularly in crude-linked derivatives, is a structural reality for the industry. Our response has been to gradually shift toward specialty and application-specific products, which offer better pricing power and margin resilience. Additionally, long-term supplier relationships, process efficiencies, and continuous cost optimization initiatives help us manage input fluctuations more effectively. Over time, our focus is to ensure that a larger share of our portfolio is driven by innovation-led differentiation rather than price-led competition.
Upcoming plants are described as zero-emission and eco-friendly. What specific "green chemistry" technologies are being integrated into 2026 construction phase?
Sustainability is central to how we are designing our future. Our upcoming facilities are being developed with zero-emission and environmentally responsible principles, incorporating closed-loop systems, energy-efficient technologies, and advanced waste treatment infrastructure.
We are aligning our manufacturing philosophy with global expectations around environmental compliance and circularity, ensuring that our growth trajectory is both responsible and future-ready.
The company plans to invest heavily in next-gen solutions. What is the current focus of R&D regarding biodegradable green plasticizers?
Introduction of Chlorinated Methyl Ester (CME) mark a significant milestone for the Indian specialty chemicals ecosystem and we are proud to be a pioneer of this sustainable innovation. As India’s first biodegradable green plasticizer, CME represents a shift toward sustainable alternatives, earlier which have traditionally raised environmental concerns.
From an application standpoint, CME delivers strong performance characteristics across PVC, cables, and flexible materials, while significantly improving environmental compatibility. More importantly, it demonstrates that sustainability and performance can coexist without compromise. We see CME as the beginning of a broader portfolio of green chemistry solutions that will define the next phase of industry evolution.
As industries move toward smarter materials like Wood Plastic Composites (WPC), how is Shivtek positioning its R&D to lead in sustainable specialty molecules?
The increasing adoption of WPC in construction and infrastructure industries is indicative of a broader shift toward durable and sustainable materials. In this context, Chlorinated Polyethylene (CPE) plays a critical role as a performance enhancer, improving flexibility, impact resistance, and weatherability.
At Shivtek, we are strengthening our capabilities in CPE through focused R&D and capacity expansion. Our objective is to develop application-specific CPE grades that cater to the evolving needs of WPC and allied sectors. This positions us not just as a supplier of chemicals, but as a partner in enabling next-generation material innovation. This is further supported by strengthened R&D oversight at the board level with the appointment of Dr. Trusar D. Bagul as Independent Director, bringing deep expertise in organic chemistry to guide innovation in high-value, sustainable specialty chemicals.
In the context of "Make in India," how is Shivtek contributing to reducing India's dependence on imported specialty chemicals?
India’s specialty chemicals sector is at a pivotal stage, with a strong opportunity to deepen domestic manufacturing and reduce import dependence. Shivtek is closely aligned with the vision of “Make in India” and “Aatmanirbhar Bharat” by developing high-quality specialty chemicals within the country.
Through investments in technology, scale, and product development, we are enabling reliable domestic alternatives to previously imported materials, thereby strengthening supply chain resilience for Indian industries. Our approach goes beyond substitution.
We are building globally competitive capabilities within India, ensuring that the country emerges as a preferred supplier in the global specialty chemicals landscape.
You are set to pioneer high-grade chlorinated compounds for the first time in India. What specific industry gaps (e.g., in pharmaceuticals or agrochemicals) will these new products fill?
Our upcoming high-grade chlorinated compounds are aimed at addressing specific gaps across sectors such as pharmaceuticals, agrochemicals, and polymers. These industries require consistent quality, high purity, and application-specific performance, which we are well-positioned to deliver.
In the polymers segment, especially in Wood Plastic Composites (WPC), there is a clear gap in the availability of high-quality, domestically produced performance materials like CPE. With India currently reliant on imports, our initiative is aimed at strengthening local supply while supporting the rising demand for WPC as a durable and eco-friendly alternative to natural wood. Our solutions are designed to enhance impact resistance, weatherability, and longevity, which are key requirements for construction and infrastructure applications.
By manufacturing these products domestically, we are contributing to improved availability, reduced lead times, and enhanced reliability for downstream industries. This also aligns with the broader shift toward sustainable materials and circular applications, where WPC is emerging as a key solution.
With exports already reaching 75+ countries, which new international markets are you targeting with the expanded capacity of the ShivaSol and CPE product lines?
With expanded capacity, our focus will be on deepening our presence in Europe, Southeast Asia, Latin America, and Africa. These regions present strong demand for compliant, high-performance, and sustainable specialty chemicals. We are particularly focused on strengthening our footprint in regulated markets, where quality standards are stringent and long-term partnerships are critical.
You've mentioned self-reliance and technological advancement as core philosophies. How are you integrating AI or automation in your manufacturing processes?
Digital transformation is an important enabler of our growth. We are integrating AI-driven analytics, predictive maintenance systems, and advanced process automation to enhance operational efficiency and product consistency. These technologies not only improve plant performance but also contribute to safety and sustainability by optimizing resource utilization.
What steps is Shivtek taking to incorporate alternative raw materials or recycling into its chemical production lines?
We are rethinking conventional chemistries to align with evolving environmental expectations and innovations such as CME are reflective of this approach. Our sustainability roadmap includes a strong emphasis on circularity and alternative feedstocks. We are exploring bio-based inputs and developing formulations that are compatible with recycling ecosystems.
At Shivtek, safety is described as a "shared responsibility," not just a protocol. How do you maintain this standard across multiple manufacturing sites?
Safety at Shivtek is embedded into the organizational culture and extends beyond compliance to collective ownership. We ensure consistency across sites through standardized operating procedures, regular audits, and continuous training programs that reinforce safe practices at every level. This is further reinforced through structured safety management systems, periodic risk assessments, and cross-functional accountability, ensuring uniform standards and continuous improvement across all manufacturing locations.
Given the global supply shortages, how does Shivtek ensure reliability and "situational commitment" to its international buyers?
In an environment marked by supply chain disruptions, reliability has become a key differentiator. Shivtek has built a resilient supply framework supported by diversified sourcing, robust inventory planning, and strong logistics partnerships. Our commitment to customers is reflected in our ability to maintain continuity of supplies and deliver on commitments, even in challenging situations, like the recent US-Israel-Iran war.
Following your recent celebrations of women in the workplace, what initiatives are in place to increase female leadership within the traditionally male-dominated chemical industry?
The specialty chemicals sector has traditionally seen lower diversity, and we are committed to changing that. Shivtek is actively working toward increasing female participation and leadership through targeted hiring, mentorship programs, and an inclusive work environment.
We believe that a diverse workforce brings broader perspectives, driving innovation and strengthening organizational resilience.