Specialty chemicals maker Himadri Speciality Chemical Ltd is betting heavily on battery materials and semiconductor-linked technologies as it seeks to transform itself into a global advanced materials company, with plans to build a Rs 30,000-crore battery materials business over the next six years.
The company aims to develop 100 GWh of cathode and anode material capacity over the period, Chairman, Managing Director and CEO Anurag Choudhary told The New Indian Express in an exclusive interview.
"We have been working on lithium-ion materials for more than 12 years. Over the next six years, we are targeting 100 GWh capacity of cathode and anode materials. We expect this business to generate around Rs 30,000 crore in revenue," Choudhary said.
However, he clarified that the company has no plans to enter battery cell manufacturing or electric vehicle production.
"We want to remain a materials manufacturer. There is no plan to manufacture battery cells or EVs," he said.
The company also sees a significant opportunity in India's emerging semiconductor ecosystem through carbon nanotubes, an advanced material that is stronger than steel while offering electrical conductivity comparable to copper.
According to Choudhary, carbon nanotubes could find widespread applications in semiconductors, electric vehicles, energy storage systems, aerospace and advanced polymers.
"Carbon nanotubes will have a very important role in semiconductor manufacturing. While demand is still at an early stage in India, we expect significant opportunities as domestic semiconductor manufacturing expands," he said.
The ambitious expansion comes as Himadri reported a robust first quarter, with both revenue and net profit rising 28% year-on-year.
Choudhary attributed the performance to the company's strategic shift from commodity products to high-value-added specialty products, coupled with improvements in manufacturing efficiency and cost optimisation.
"Our strategy has been to move from volume to value. Higher contribution from specialty products, along with lower manufacturing costs and better operational efficiencies, has significantly improved profitability," he said.
The company is now targeting a doubling of profit after tax from Rs 555 crore in FY25 to about Rs 1,100 crore by FY28, although it does not provide revenue guidance.
Unlike many companies chasing topline growth, Himadri is prioritising profitability, Choudhary said.
The transformation has been underpinned by increased investments in research and development. The company invested more than Rs 126 crore in R&D last year, equivalent to around 2.6% of revenue, and has built a 180-member research team, including 28 PhDs.
Choudhary said all of Himadri's key technologies—including lithium iron phosphate (LFP), anode materials, specialty carbon black and carbon nanotubes—have been developed in-house.
"We don't buy technology from outside. R&D has become part of our DNA," he said.
The company also expects exports to account for more than half of its revenue within five years, up from around 30% currently, with Europe and the US remaining its largest overseas markets.
On specialty carbon black, Choudhary said global demand is growing at 6-7% annually, while competition remains relatively limited compared with commodity carbon black.
The company is also exploring opportunities in rare earth materials, though projects remain at the research stage.
Apart from advanced materials, Himadri is investing heavily in reviving Birla Tyre after acquiring the business. The company plans to modernise the manufacturing facility, automate operations and expand into EV tyres, SUV tyres and off-the-road tyres.
Birla Tyre generated revenue of ₹187 crore last year, and Himadri is targeting Rs 3,000 crore in revenue from the business over the next five years.
Despite its aggressive expansion plans, the company said it has no intention of raising fresh equity or debt and will fund growth through internal cash generation.
"Our cash flows are strong enough to support our ambitions," Choudhary said.
The company has announced capital expenditure of about Rs 2,000-2,100 crore over the next two to three years, including Rs 1,125 crore for its LFP project, Rs 368 crore announced recently and around Rs 500 crore for Birla Tyres.
