Prasol Plans Brownfield Expansion of Two Specialty Chemicals Production Sites in India

en.Wedoany.com Reported - On September 7, Prasol Chemicals disclosed that it is studying brownfield expansions at its two existing production sites in Khopoli and Mahad, Maharashtra, India, to expand specialty chemicals capacity through debottlenecking, increasing existing production facility capabilities, and improving plant utilization rates. The company's Red Herring Prospectus filed with the Securities and Exchange Board of India on September 3 has included the Khopoli and Mahad capacity expansions in its subsequent manufacturing plans, with the expansion focus continuing to center around acetone-based, phosphorus-based, and other specialty chemicals production systems. The company has not yet disclosed the investment amount for this round of expansion, the total new capacity to be added, or the specific commissioning timeline.

Prasol's existing Khopoli and Mahad plants have a combined installed capacity of 98,644 tonnes per year. The Khopoli site covers approximately 120,604 square meters, with an installed capacity of 78,784 tonnes per year as of the end of March 2026, and actual production of 63,256 tonnes in fiscal year 2025–2026, representing a capacity utilization rate of 80.29%. The Mahad site covers approximately 119,423 square meters, with an installed capacity of 19,860 tonnes per year, and production of 8,756 tonnes over the same period, representing a capacity utilization rate of 44.09%. Khopoli's existing capacity accounts for approximately 80% of the company's total capacity across the two plants, making it the primary existing production platform for this debottlenecking expansion.

The two plants currently jointly produce more than 150 specialty chemicals, including 21 acetone-based products, 53 phosphorus-based products, and 76 other specialty chemicals, with products entering application areas such as lubricant additives, mining chemicals, coatings and inks, construction and adhesives, pharmaceuticals, agrochemicals, and personal care. Prasol has established an integrated production platform for acetone derivatives and phosphorus derivatives, and this round of brownfield expansion will continue to leverage the existing reaction, storage and transportation, utility, and production infrastructure at both sites to increase core product line capabilities.

The Khopoli site began production in 1995, and its existing production system includes acetone derivatives and other organic chemicals, alongside supporting R&D activities. According to data from the Maharashtra Pollution Control Board, when the site renewed its operating permit in 2024, the related industrial investment amount had increased from INR 2,400.5 million to INR 2,609.2 million. Prasol also operates a certified facility at Dheku in Khopoli for repackaging, warehousing, and dispatch, and the company's prospectus documents indicate that this facility is suitable for conversion to production use.

The Mahad site commenced operations in 2020, primarily undertaking the production of agrochemical intermediates and related phosphorus-based chemical products. In December 2024, the Maharashtra Pollution Control Board issued a "Consent to Establish for Expansion" to Prasol's Mahad site, with the construction permit for the corresponding expansion project valid until project commencement or the expiry of the five-year period, whichever occurs earlier. The company's subsequently disclosed manufacturing plans continue to list Mahad as a capacity expansion target, with the site's current capacity utilization rate of 44.09% lower than that of the Khopoli site.

In addition to expanding existing products, Prasol also has approximately 40 products in its R&D pipeline as of June 30, of which 9 have completed the pilot stage; since April 2023, 13 new products have completed development and achieved commercialization. The company is also building a dedicated application testing laboratory, equipped with specialized testing equipment for lubricant additives, construction chemicals, and mining chemicals, to verify product performance in customer end-use formulations.