Matix Group on Wednesday said it will foray into industrial and speciality chemicals manufacturing with an investment of over Rs 2,600 crore, including the setting up of Eastern India's first Iso-Propyl Alcohol plant in West Bengal.
The proposed IPA unit, with an annual capacity of 50,000 tonnes, will come up within the company's existing facility at Panagarh Industrial Park, which also houses a 1.27 million tonnes per annum urea plant. The new facility is expected to be commissioned in FY27, the company said in a statement.
The company did not provide project financing details.
IPA is a key input used in pharmaceuticals and personal care products. The project will bolster domestic availability of the chemical and support the government's Atmanirbhar Bharat initiative, Matix said.
The group's chemicals diversification plan is based on a study conducted in collaboration with consultancy firm McKinsey.
To secure the supply of acetone, the key raw material for IPA, Matix has signed a memorandum of understanding with AdPlus Chemicals and Polymers Pvt., a subsidiary of Haldia Petrochemicals Ltd.
"We have successfully demonstrated our ability to build and operate large manufacturing plants and emerged as Eastern India's largest single-stream fertiliser company," said Nishant Kanodia, Chairman, Matix Fertilisers and Chemicals Ltd.
"The foray into industrial and speciality chemicals aims to leverage our infrastructure and operational expertise to meet rising domestic demand. This expansion aligns with our long-term vision of responsible diversification beyond fertilisers into high-growth sectors," he added.
Matix Fertilisers and Chemicals holds nearly 20% market share in Eastern India's fertiliser market.
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