The Tamil Nadu-based company’s greenfield expansion will propel its rCB capacity from 5,000-20,000 metric tonnes. Director Ravi Rathi explained that there has been a change in attitude towards rCB within tyre companies, leading to heightened demand.

Tamil Nadu-based Capital Carbon is expanding its recovered carbon black (rCB) capacity by 15,000 metric tonnes with a new greenfield project at Gummidipoondi. The plant is slated to become operational by January 2025 and boost the capacity from 5,000 metric tonnes to 20,000 metric tonnes, annually.

Speaking to Tyre Trends, Director Ravi Rathi explained, “The decision to pursue a greenfield expansion in the rCB sector stemmed from the rapid development of this innovative product over the past four to five years. Given our background in the pyrolysis business, expanding into rCB felt like a natural progression. rCB is still a relatively new product and both manufacturers and users are in the process of learning about its applications. When we first began exploring this market, around four years ago, it was challenging. Many tyre manufacturers would dismiss our proposals even before we could present our case as they were hesitant to incorporate recycled materials into their mainstream formulations.”

“However, in recent years, attitudes have shifted significantly due to increasing emphasis on sustainability and circular economy principles. The industry is now more open to integrating green products. We started with a modest capacity of 5,000 metric tonnes per annum, which allowed us to gain insights into customer needs. Gradually, we scaled our operations from small quantities to commercial sales. The key driver for our recent expansion is customer demand. We have obtained product approval, and customers are eager to purchase rCB,” he added.

He also noted that companies wanted assurance that the demands could be met consistently, which was also a factor behind the expansion. Furthermore, having multiple units also allows the company to manage any potential supply chain issues, effectively. “If a minor problem arises in one unit, we can still supply material from another, minimising disruptions for our customers,” said Rathi.

The entire CAPEX for the greenfield plant is set at INR 20 crore.

Pyrolysis to rCB

Capital Carbon commenced operations in 2012 with a modest pyrolysis capacity of 10 tonnes per day. Over the years, it has consistently expanded its capacity, increasing to 150 metric tonnes per day. The company has also bolstered its backend operations, enhancing sourcing capabilities and adding substantial shredding and crumbing capacity.

Additionally, Capital Carbon has focused on value-added products including pyrolysis oil distillation and rCB. As of now, it operates a shredding capacity of 120,000 metric tonnes per annum for captive consumption. This capacity is supplemented by sourcing contaminated tyre bales, which typically have 20-30 percent rubber contamination. This material is cleaned to yield 98 percent pure steel, with the remaining rubber used for pyrolysis, creating a separate business vertical.

Currently, the company processes approximately 50,000 to 52,000 metric tonnes of tyres per annum through its pyrolysis operations. In terms of value addition, Capital Carbon produces between 20,000 to 24,000 tonnes of pyrolysis oil, annually.

When asked about the motivation behind establishing a pyrolysis plant, Rathi noted, “My father worked at Birla Carbon and retired in 2019. Although we lacked prior business experience, we were inspired by the industrial upbringing and the promising potential of the pyrolysis sector. Following the completion of my chartered accountancy studies, I decided to pursue this opportunity.”

He acknowledged that pyrolysis often has a negative reputation in India, where it is sometimes viewed as a ‘dirty business’. To combat this perception, Capital Carbon prioritises quality management and environmental responsibility in its operations. IT employs fuel-based heating methods in its pyrolysis process as electric heating is generally not feasible due to the high volumes involved in tyre pyrolysis. The initial heating requires some fuel, which can include biomass or pyrolysis oil, but the system becomes self-sufficient once it reaches a certain temperature.

The primary outputs from the pyrolysis process include fuel oil, carbon char (used as raw material for rCB or as an alternative energy source for cement plants), steel wires and pyrolysis gases, which are utilised for heating purposes.

He highlighted that the pyrolysis oil produced is of high quality with low sulfur and carbon content, making it cleaner than many conventional heating fuels used in India.

Quality control

The company’s sourcing strategy primarily focuses on domestic suppliers. It procures rejected tyres and dealer returns from various companies, which constitute a substantial portion of the feedstock. This local sourcing approach ensures that it maintains a steady supply of raw materials

Following sourcing, the production of recovered carbon black involves several critical steps. Initially, tyres are shredded to extract carbon black, steel and other components. The distinction in product application necessitates tailored processing methods.

For instance, producing carbon char for energy requires less stringent technical specifications compared to producing carbon black intended for high-performance applications, such as tyre manufacturing or footwear.

“The quality of the final product begins with meticulous sorting of tyres to determine suitability for pyrolysis. This initial step is vital for ensuring consistent output quality. Following sorting, the tyres are shredded into steel-free rubber chips of 15-20 millimetres. During pyrolysis, we focus on maintaining specific quality parameters for the pyrochar produced. This includes stringent controls to limit ash content, which must remain below 20-22 percent to ensure product consistency. The handling of impurities such as wires and stones in the pyrochar is essential. Post-processing, the pyrochar is milled to fine particle sizes (10-15 microns), enhancing its surface area for better compatibility with rubber compounds,” explained Rathi.

Once the recovered carbon black is processed, palletisation becomes the next step. This method streamlines handling and ensures that the product meets industry standards. While the equipment resembles that used for traditional carbon black, adaptations are necessary to accommodate the unique characteristics of recovered carbon black.

“To facilitate customer adoption, we offer tailored packaging solutions including 25kg paper bags, EVA / LDPE bags and FIBC bags, allowing clients to integrate our products seamlessly into their existing production processes,” he added. 

As the industry evolves, the need for standardised quality benchmarks for recovered carbon black has become increasingly clear. Major corporations have driven this change, leading ASTM to establish a dedicated committee (D36) focused on developing specific standards for recovered carbon black. Unlike conventional carbon black, which adheres to existing standards, recovered carbon black requires new metrics to account for its varied origins and compositions.

The committee is currently validating a series of standards including moisture content, pallet hardness and particle size analysis, specifically for rCB. This ongoing development is slated to enhance product credibility and facilitate broader market acceptance.

Commenting on the same lines, Rathi mentioned, “We maintain a dedicated quality lab to refine our production processes continually. Our focus on evolving our offerings has resulted in the introduction of two new grades of recovered carbon black, aimed at meeting diverse market needs. Our commitment to leveraging advanced machinery and improved grinding techniques reflects our proactive approach to quality enhancement and capacity expansion.”

Optimistic market outlook

The demand for recovered carbon black in India is poised for significant growth, driven by a strong shift toward sustainability. Customers are increasingly seeking high-quality suppliers, indicating a burgeoning market for rCB.

“Globally, rCB production currently accounts for less than one percent of total carbon black production, underscoring a substantial opportunity for expansion. As customer awareness and demand for sustainable products increase, we anticipate a corresponding rise in rCB consumption,” informed Rathi.

He added, “Many major corporations have committed to achieving carbon neutrality by 2050, necessitating immediate action to integrate green and circular products into their supply chains. As these companies strive to meet their net-zero targets, they are turning to recovered materials such as rCB to fulfil sustainability mandates. Our role is crucial in assisting these customers to achieve their goals through the production of eco-friendly and circular products derived from end-of-life tyres.”

Speaking on market opportunities, he said, “India remains our largest market, but we are also making significant inroads into Sri Lanka. The European market is particularly promising, though it presents challenges related to certifications and distribution. We are currently working on obtaining the necessary certifications, including ISCC Plus, to unlock this market potential.”

“Our immediate focus is on completing our current expansion project, after which we will enhance our pyrolysis capacity to align with the growing demand from our customers. As the volumes of recovered carbon black usage increase, we aim to be ready with sufficient supply,” he added.

He expects to penetrate the European market by the first half of FY26, following the completion of the current plant expansion.

Challenges in scaling production

“One of the primary challenges in scaling rCB production is the scarcity of raw materials. The supply of suitable feedstock is diverse and scattered, making it difficult to source consistently. In the past, customers struggled to understand the differences between recovered carbon black and virgin carbon black grades, often asking if we could produce specific grades like L550 or L660. However, as knowledge in the market has matured, customers are increasingly recognising that rCB is a distinct material requiring tailored processing approaches,” informed Rathi.

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The Association of Natural Rubber Producing Countries (ANRPC) confirmed the participation of its Secretary-General, Dr Suttipong Angthong, in a high-level dialogue held on 9 July 2026. The engagement took place during the official visit of Thailand's Prime Minister, His Excellency Anutin Charnvirakul, to Malaysia. Dr Angthong joined a prominent assembly that included the Prime Minister, Thailand's Deputy Prime Minister and various cabinet delegates from both nations.

The meeting also brought together representatives from international intergovernmental bodies and leading corporate figures from Thai and Malaysian industries. Given that both Thailand and Malaysia are founding members of the ANRPC and serve as cornerstones of the global natural rubber market, the session was deemed a crucial venue for harmonising regional strategies. It offered the ANRPC a platform to elevate sector-specific priorities within top-tier governmental discussions.

Through the facilitation of productive exchanges between policymakers and private-sector leaders, the ANRPC continues to foster cross-border collaboration, reinforce the stability of supply chains and advance sustainable growth initiatives. The organisation has reiterated its steadfast dedication to supporting its member states with professionalism and collaborative effort, aiming to secure the long-term vitality and resilience of the natural rubber industry across the region.

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The Association of Natural Rubber Producing Countries (ANRPC) hosted a high-level delegation from PEFC International at its headquarters on 9 July 2026. The visiting team, led by Remco van Merm, engaged in strategic talks with ANRPC Secretary-General Dr Suttipong Angthong and his senior staff, marking a significant moment for inter-organisational collaboration.

The discussions provided a critical forum for exchanging perspectives on ongoing global initiatives and the shifting sustainability dynamics affecting the natural rubber sector. With mounting market pressures regarding environmental stewardship and social accountability, the conversation centred on harnessing joint efforts to fast-track the implementation of responsible practices throughout the entire production and distribution network.

Both organisations underscored the necessity of strengthened coordination among all industry participants to secure a robust and enduring future for natural rubber. The dialogue culminated in a shared pledge to deepen cooperation, with the goal of cultivating a more transparent and ecologically sound value chain. This mutual commitment is expected to deliver tangible benefits across the board, reinforcing the industry's capacity to meet emerging global standards.

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Natural Rubber (NR) plantations developed under Project INROAD (Indian Natural Rubber Operations for Assisted Development) have reached 179,376 hectares across north-east India after the completion of planting for the 2025-26 financial year, bringing the initiative close to its original target of 200,000 hectares.

Launched in the 2021-22 financial year, the project has established new NR plantations across 113 districts in the region over the past five years. According to the project partners, this represents the country's largest expansion of natural rubber plantations achieved within such a period.

Project INROAD is funded by tyre manufacturers Apollo Tyres, CEAT, JK Tyre and MRF, and is implemented by the Rubber Board of India. It is described as the first initiative of its kind in which the Indian tyre industry directly supports the development of rubber plantations.

"Despite several operational challenges including Covid-induced disruptions in the beginning, nearly 90% of the ambitious target of 2 lakh hectares of new plantation has been achieved under Project INROAD during the last five years. Beyond plantation expansion, the project has also made significant progress in strengthening local nurseries and building grower capacities — a testament to the collaborative efforts of the tyre industry and the Rubber Board," said Mohan Kurian, chairman of Project INROAD.

The project has distributed a record 83m quality planting materials during the five-year period. It has focused on supporting resource-constrained communities in the designated states, particularly small and marginal farmers, most of whom own less than one hectare of land. More than 200,000 beneficiaries have been supported through the initiative, with the project aiming to improve livelihoods and promote socio-economic development.

Project INROAD has also expanded nursery infrastructure across the region. More than 200 nurseries are supplying high-yielding planting materials to growers, while new and improved rubber clones suited to the north-east's agro-climatic conditions are being distributed through the programme.

"With plantations reaching a critical stage, the next component of the project — development of supporting infrastructure such as model smokehouses and dissemination of improved practices among rubber growers — is progressing well under the INROAD Skilling and Production Efficiency Enhancement Drive (iSPEED) initiative," Kurian added.

Under the iSPEED initiative, infrastructure development is intended to improve the quality of rubber produced by farmers through value addition at source. The programme also plans to roll out large-scale digital and in-person training for growers, supported by newly developed training materials that are ready for release.

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