Epsilon Carbon to invest Rs 550 cr in Karnataka

About 30% of Epsilon’s finished goods is accounted for by carbon black oil

Epsilon Carbon, a carbon black manufacturer on Monday said it would make a capex investment of Rs 550 crore to increase the capacity of its Vijayanagar unit by 85 per cent to 215,000 metric tons, making it “the third largest player by capacity,” company spokesperson said.

With this, the company’s overall investment in the carbon business division will surpass Rs 1,000 crore.

“We started off with an investment of about Rs 500 crores and set up a 115,000-ton-a-year carbon plant during Covid-19. Looking at how the growth of tyre companies in India is happening and the opportunities globally also, we decided to add another 100,000 tons of capacity with this new investment,” Epsilon Carbon Managing Director Vikram Handa told DH.

About 30 per cent of Epsilon’s finished goods is accounted for by carbon black oil, which the company was supplying to other carbon black manufacturers until they set up their carbon black plant in 2020.

The capex investment also includes setting-up of a 25 MW captive power plant which will use tail gases from the carbon black manufacturing process to fulfill the power requirements of all of the operations in its Vijayanagar facility.