Chemplast Sanmar Ltd will sharpen its strategic focus on speciality businesses, including Speciality Paste PVC, Custom Manufactured Chemicals (CMC) and R32 refrigerant gas, as it seeks to build market leadership and drive long-term growth despite a challenging operating environment.
In his message to shareholders in the company’s Annual Report 2026, Chairman Vijay Sankar said these businesses will remain the cornerstone of Chemplast Sanmar’s future growth strategy, supported by investments in capacity expansion, technology and customer relationships.
Betting on speciality businesses
Sankar said the company’s future growth trajectory is firmly centred on its speciality portfolio, which has continued to deliver steady progress despite macroeconomic and geopolitical headwinds.
“Our future trajectory is firmly anchored in Speciality Paste PVC, Custom Manufactured Chemicals and R32 Refrigerant Gas. We will continue to direct our investments into these areas to build and maintain dominant market positions,” he said.
He noted that these businesses represent areas of sustainable competitive advantage and are laying the foundation for Chemplast Sanmar’s next phase of growth through enhanced manufacturing capabilities and deeper customer engagement.
Geopolitical, regulatory headwinds
The chairman said the company faced multiple external challenges during the year, including disruptions in global supply chains arising from the ongoing conflict in the West Asia, which led to shortages of naphtha and ethylene and pushed up prices of vinyl chloride monomer (VCM), a key raw material.
He also highlighted the continued influx of low-priced Chinese carbide-based PVC into India, which put pressure on domestic manufacturers, while a prolonged inventory correction in the global agrochemical industry slowed demand for new custom manufacturing molecules.
On the regulatory front, Sankar said the withdrawal of Quality Control Orders (QCOs) and the Ministry of Finance’s decision not to impose anti-dumping duty on Suspension PVC created additional challenges for domestic producers.
However, he said China’s decision to withdraw export tax rebates on PVC exports could help restore balance in global markets by reducing pricing distortions.
Strategic review underway
Acknowledging the pressure on the company’s commodity businesses, Sankar said the board has constituted a committee comprising three independent directors to evaluate strategic priorities, potential business reorganisations and merger and acquisition opportunities.
The committee will explore options aimed at enhancing long-term shareholder value amid structural changes in global commodity markets.
Roadmap for growth
Managing Director S Ganeshkumar outlined the company’s operational priorities for the coming year, with a strong emphasis on scaling its speciality businesses.
The company plans to accelerate conversion of its Custom Manufactured Chemicals development pipeline into commercial contracts by leveraging the newly commissioned multipurpose manufacturing blocks.
Chemplast Sanmar has set a target of achieving ₹1,000 crore in revenue from its CMC business by FY28.
The company also plans to ramp up production of R32 refrigerant gas in phases towards its installed capacity target of 14 KTPA, while continuing to improve manufacturing efficiency through greater use of green energy and operational excellence initiatives.
Building long-term resilience
Chemplast Sanmar believes its increased focus on speciality chemicals, combined with disciplined capital allocation and operational efficiency, will strengthen its resilience against commodity market volatility while creating sustainable long-term value.