Shivtek Spechemi Industries is investing Rs 150 crore in a new Gujarat manufacturing facility to scale up the production of specialty chemicals. The project includes a 24,000 KL tank farm to lower storage costs. Additionally, the company is developing a new unit in Punjab to produce chlorinated polyethylene, aiming to replace imports currently sourced from China and tap into growing domestic demand.
Shivtek Spechemi Industries is expanding its operational footprint with a Rs 150 crore investment in a new facility located in Pungam, Gujarat. The company acquired the 21-acre site through a bank auction to support the production of high-purity specialty chemicals. The company intends to focus on manufacturing semiconductor-grade isopropyl alcohol and hydrogen peroxide, materials that are critical for the fabrication of silicon wafers.
Scaling Infrastructure in Gujarat
The new Pungam facility is strategically positioned near the Delhi-Mumbai Expressway and approximately 45 kilometers from the Hazira Port. This location is designed to streamline the import of raw materials and improve the distribution of finished products across North and West India. A key feature of the expansion is the construction of a 24,000 KL captive tank farm on-site. By developing this storage capacity, the company aims to reduce its reliance on third-party leasing arrangements at ports and maintain an inventory buffer of four to five months. This move is expected to help the company manage logistics costs and reduce potential supply chain disruptions.
Targeting Import Substitution
In addition to the Gujarat project, Shivtek is advancing its plans for a manufacturing unit in Rajpura, Punjab, which will focus on the production of chlorinated polyethylene (CPE). Currently, India is heavily dependent on imports to meet its monthly demand for this material, which ranges between 2,000 and 2,500 tonnes. The company plans to roll out a pilot project with a capacity of 500 tonnes per month by FY 2027-2028.
CPE is a primary material used in the manufacturing of wood polymer composites, which serve as a sustainable alternative to natural timber in the construction and housing sectors. The project aligns with government-led initiatives such as the Pradhan Mantri Awas Yojana, which drives demand for cost-effective and durable building materials. By localizing production, the company aims to reduce foreign exchange outflows and offer a domestic supply option for the real estate industry.
For the company, the success of these expansions will depend on timely project execution and the ability to achieve the required purity standards for semiconductor-grade chemicals. The market will monitor the commissioning timeline of the Pungam and Rajpura facilities, as well as the company's ability to compete with existing international suppliers on cost and quality once local production begins.