India’s zinc oxide industry is undergoing a structural shift from volume-driven manufacturing to value-led specialisation and Punia Group’s trajectory reflects both the opportunity and the pressure within this transition. As demand from tyres, EVs and global markets intensifies, the company is expanding its capabilities while navigating volatility in raw materials, regulatory tightening and supply chain disruptions. Its evolution underscores a broader industry reality that growth is no longer defined by scale alone but by consistency, sustainability and the ability to stay competitive in an increasingly complex global ecosystem.

For over four decades, Punia Group of Industries has steadily transformed itself from a modest, commodity-focused manufacturer into a forward-looking player in zinc oxide. The company’s journey reflects not just its own resilience but also the broader evolution of India’s manufacturing ecosystem.

In its early years, the business operated in a market driven largely by volumes and cost competitiveness. However, with a clear understanding that long-term sustainability required differentiation, the organisation began investing in process improvements, quality consistency and customer-centric innovation.

Over time, strategic inflection points such as technology upgrades and introducing efficient systems enabled the company to move up the value chain and strengthen its market position.

Underpinning this evolution has been a strong foundation of ethics, transparency and disciplined governance, which has guided every phase of growth.

“The zinc oxide and rubber chemicals industry itself is undergoing a significant transformation. What was once a commoditised, price-driven sector is now being reshaped by increasing demands for performance and sustainability,” noted Chief Executive Officer Siddharth Punia.

He added, customers, particularly in the tyre and automotive sectors, are seeking materials with consistent quality and lower environmental impact. While commodity segments continue to exist, the competitive advantage today lies in innovation, compliance and the ability to meet evolving global standards.

Against this backdrop, Punia Group is charting its next phase of growth with a clear and structured vision for the next three to five years.

THE NEXT PHASE

The company is focusing on expanding production capacity in a calibrated manner, ensuring that every addition is backed by robust demand visibility and operational readiness. A key area of alignment is with the growing demand from electric vehicles, advanced tyre technologies and industrial applications that require precision-engineered materials.

The organisation’s approach remains firmly rooted in systematic growth prioritising sustainability, efficiency and long-term value creation over short-term scale. This is evident by the company obtaining IATF 16949 and REACH certifications.

“The global business environment has become increasingly complex in recent years. Supply chain disruptions triggered by the Covid-19 pandemic followed by ongoing geo-political tensions such as those in the Middle East have had a direct impact on raw material sourcing and pricing,” contended Punia.

He added that zinc, being a globally traded commodity, has experienced considerable volatility, affecting cost structures across the industry. In response, companies are rethinking their supply chain strategies by diversifying sourcing, building strategic inventories and reducing overdependence on specific geographies.

Punia Group has taken pro-active steps in this direction by strengthening supplier relationships and exploring regional procurement options, ensuring continuity while adhering to its principles of fair and responsible sourcing.

TICKING THE CONS

Operating in this environment also brings a unique set of challenges. “Raw material price fluctuations, stringent environmental regulations and demand uncertainty linked to global economic cycles remain key concerns,” said Punia.

The company’s response has been grounded in discipline and foresight, investing in energy-efficient and environmentally compliant technologies, driving process innovation to reduce waste and maintaining agile production systems.

“Importantly, these efforts are guided by a strong ethical framework that emphasises compliance, environmental stewardship and accountability to all stakeholders including customers, employees and the communities we operate in,” he noted.

GRABBING THE OPPORTUNITIES

At a macro level, India’s emergence as a strategic manufacturing and consumption hub offers significant opportunities for the zinc oxide and rubber chemicals industry. The country benefits from competitive cost structures, a rapidly expanding domestic market driven by automotive and infrastructure growth and supportive government initiatives aimed at boosting manufacturing and exports.

Additionally, global supply chain re-alignments are creating opportunities for India to position itself as a reliable alternative to traditional manufacturing bases, further strengthening its role in the global value chain, informed Punia.

Reflecting on its 40-year journey, Punia underscores the importance of adaptability, cost discipline and principled decision-making. He stated, “Building a manufacturing-led business in a cyclical industry requires not just operational excellence but also consistency in values and vision.”

The company’s emphasis on systematic, step-by-step growth has enabled it to navigate multiple economic cycles while maintaining financial and operational stability. Past disruptions, whether economic downturns or supply shocks, have reinforced the importance of resilience, diversification and long-term planning.

CATERING TO DEMANDS

The company recently commissioned its new Tirupati plant that will be a modern, environmentally focused facility using the widely adopted French process to manufacture zinc oxide.

This involves vaporising zinc metal, reacting it with oxygen to form zinc oxide, then cooling, filtering, testing and packaging the final product. The plant will produce multiple grades tailored to customer requirements.

“Raw materials will largely come from zinc dross sourced locally and globally from the galvanising industry. The process is designed as a closed-loop, zero-waste system, where by-products are re-used,” he said.

“Over the past decades, technology has continually evolved and we have consistently stayed ahead of the curve, adopting innovations well before they became industry standard. We introduced efficient collection systems that are not only environmentally responsible but also enhance product quality while prioritising worker safety,” informed Punia.

He contended that the plants’ re-designed furnaces enable cleaner, more efficient combustion, reducing emissions and delivering meaningful energy savings. Automation has been integrated wherever feasible to improve consistency and operational efficiency, while the health and safety of the workforce remain central to every decision that the company makes.

“Beyond operations, we are equally committed to giving back to the community. We actively support nearby villages through healthcare initiatives, encourage and sponsor sports activities and contribute to local infrastructure development, reinforcing our role as a responsible and engaged stakeholder,” he said.

Sustainability efforts like reducing fuel consumption through heat recovery and furnace optimisation has already achieved 15–20 percent savings. The company is also enroute to install heat recuperators and planning a transition to solar energy to meet most electricity needs.The facility also set internal benchmarks for efficiency and sustainability, particularly through improved energy utilisation and process optimisation.

During the Covid period in 2020, the company expanded this plant significantly, reinforcing its role as a high-output, strategically important unit. In addition to serving domestic demand, the Gujarat location offers strong logistical advantages for exports, especially through proximity to western ports like Mundra, enabling access to global markets.

“Even as the Tirupati plant strengthens southern reach, the Gujarat facility continues to anchor the company’s western and export-oriented operations, making the two plants complementary in terms of geography and market coverage,” said Punia.

FUTURE OUTLOOK

Looking ahead, the alignment between industry and government policy will play a crucial role in sustaining growth momentum. While India has made notable progress in supporting the speciality chemicals sector, further reforms in areas such as regulatory simplification, faster environmental clearances and infrastructure development can significantly enhance ease of doing business and global competitiveness.

As the industry continues its transition from commoditisation to specialisation, companies that combine innovation with integrity will define the future. With its strong ethical foundation, commitment to systematic growth and forward-looking strategy, Punia Group of Industries is well-positioned to capture emerging opportunities while contributing meaningfully to India’s evolving industrial landscape.

Punia Group’s growth narrative is compelling, but sustaining momentum will depend on execution amid volatility and rising expectations. As the industry shifts towards specialisation, the real test lies in balancing cost pressures with innovation and sustainability, ensuring that expansion translates not just into scale but into durable competitive advantage.

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Kraton Corporation, a leading global producer of speciality polymers and high-value bio-based chemicals derived from pine wood pulping co-products, has announced a price increase of USD 220 per metric tonne, equivalent to USD 0.10 per pound, across all polymer products sold in North America. The affected lines include Kraton D SBS, Kraton D SIS and Kraton G SEBS/SEPS.

According to the company, the adjustment is necessary to offset significant and sustained increases in feedstocks, energy, logistics, process materials and other manufacturing costs. The increase will take effect on 1 December 2026 or as permitted by applicable contracts.

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Evonik, a global speciality chemicals company, has completed a EUR 52 million expansion of its silicone platform at the Essen Goldschmidtstrasse site in Germany, constructing a new production plant and a large tank farm. The facility raises output capacity for organomodified silicones, a core product group in the company’s global silicone network.

The Essen site operates as a central node in that network, closely tied to Evonik facilities in Geesthacht, Obernburg and Wittenburg in Germany, Pandino in Italy, Shanghai in China and Hopewell, Virginia, in the United States. The expansion strengthens the resilience of this international production system by lessening the need to ship intermediates and finished goods between locations.

Logistics infrastructure has been optimised to support more efficient operations. A new 150-metre pipe bridge links four production units and 15 manufacturing assets to the tank farm, which comprises five stainless-steel tanks, the tallest standing 24 metere and holding substantial quantities of key raw materials. The result is steadier production, more robust supply chains and reduced reliance on short-term deliveries. The tank farm has enlarged the Essen site from 32 to 35 hectares.

The project was executed with the site fully operational and despite constrained space, drawing on roughly 80 Evonik employees and over 230 contractors from 25 partner companies. Essen Goldschmidtstrasse also features in Evonik’s newly developed long-term plans, which assign a clear profile to each of six major production sites – Essen Goldschmidtstrasse, Marl, Wesseling, Darmstadt/Weiterstadt, Rheinfelden and Hanau – as guidelines for future development. Under this framework, Essen Goldschmidtstrasse is positioned as a centre of excellence for customer-specific formulations.

Lauren Kjeldsen, the Evonik Management Board member responsible for the Custom Solutions segment, to which the business belongs, said, “This expansion strengthens our silicone production platform, enhancing supply chain resilience and creating a strong foundation for profitable growth. This latest investment highlights the important role that our innovative German sites play in the success of our global operations.”

Roberto VilaKeller, head of the responsible Business Line Interface & Polyurethane Additives, said, “The investment in Essen strengthens our global production network and further enhances our ability to serve customers reliably around the world. It significantly expands our production capabilities, reduces potential bottlenecks and creates opportunities for future growth in attractive markets.”

Thomas Kufen, Mayor of Essen, said, “At a time when industrial investment is more important than ever, projects of this scale send a strong signal for Essen’s economy and the wider region. They secure high-quality jobs, strengthen competitiveness and demonstrate the international attractiveness of our city as an industrial hub.”

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The Association of Natural Rubber Producing Countries (ANRPC) has published its Monthly Natural Rubber Statistical Report for September 2026, a month marked by broad-based price gains. Firm fundamentals, constrained supply and steady downstream demand combined with geopolitical and macroeconomic uncertainty to lift prices. Renewed Middle East conflict and disruptions to major shipping routes weighed on sentiment, while energy markets were especially affected by the closure of the Strait of Hormuz and attacks on transiting vessels, which raised risks to global energy supplies and strengthened the crude oil risk premium.

According to the report, physical prices for most major grades advanced. SMR-20 in Kuala Lumpur averaged USD 2.50/kg, up 7.96 percent month-on-month, and STR-20 in Bangkok rose 5.80 percent to USD 2.53/kg. RSS-3 in Bangkok slipped 0.30 percent to USD 2.79/kg, while RSS-4 in Kottayam eased 1.39 percent to USD 2.88/kg. Latex-in-bulk in Malaysia gained 3.60 percent to average USD 1.79/kg. Cautious tyre-manufacturer purchasing, limited to immediate needs after earlier increases, weighed on the RSS market. Latex drew support from tight supply, as persistent rainfall disrupted tapping and limited fresh and concentrated latex availability, while glove, healthcare and industrial demand held stable.

Trade flows diverged. China's imports grew 2.56 percent month-on-month, India's 11.36 percent and Malaysia's 17.85 percent, whereas Viet Nam's fell 3.40 percent. Exports rose 3.07 percent in Thailand, 7.30 percent in Malaysia and 1.91 percent in Cambodia, while Indonesia edged down 1.40 percent and Viet Nam recorded the steepest decline at 9.72 percent.

Global production is projected at 15.039 million tonnes in 2026, up 0.6 percent from 14.953 million tonnes in 2025, with September output estimated at 1.4 million tonnes. Uneven rainfall and elevated temperatures slowed supply recovery across Southeast Asia. Global demand is forecast to rise 0.4 percent to 15.356 million tonnes from 15.301 million tonnes, with the largest volume increases among ANRPC member countries. Prospects depend on vehicle sales, tyre production, shipping conditions and weather-related disruptions, while expanding electric-vehicle markets in China, India and Europe support modest growth.

The ringgit traded between RM4.04 and RM4.10 per US dollar, and the baht between THB 32.89 and 33.55. The SHFE January 2027 contract averaged CNY 19,070/tonne, up 5.3 percent month-on-month, and the SGX December 2026 contract averaged USD 2.41/kg, up 7.6 percent. Brent crude averaged USD 114.16 per barrel, a 25.3 percent monthly increase driven by geopolitical risks and shipping disruptions through the Strait of Hormuz.

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Birla Carbon, a leading global supplier of carbon materials, will exhibit at the International Rubber Conference (IRC) 2026, scheduled for 2–6 November in Nagoya, Japan, at Booth B. The company aims to address application-specific demands arising from the shift towards electric mobility, which places greater emphasis on tyre wear and energy efficiency while requiring automotive rubber components to balance durability with ride comfort.

A Very High Structure (VHS) lineup awaits manufacturers of passenger car, light truck, truck and bus tyres. These grades were engineered to meet electrification requirements and tightening standards such as Euro 7, delivering gains in tread wear, energy efficiency and tyre longevity.

Sustainability also features prominently. The company's Continua Sustainable Carbonaceous Materials (SCM) and Sustainable Carbon Blacks (SCB) lines, which contain higher levels of recycled or bio-based material, are intended to help tyre makers pursue circularity targets. Their dependable quality and ability to be supplied at scale in large volumes make them viable for production use, and the Continua range carries ISCC PLUS certification.

Mechanical rubber goods round out the display. Grades aimed at bushings enhance mixing and dispersion, contributing to fatigue life and component durability, while formulations for mounts pair low hysteresis and low stiffness with reinforcement so that durable parts can be produced without sacrificing ride comfort. Drop-in grades for extrusion reduce defects, scrap and screen-pack changes while raising throughput and extending service life. Simulation and technical expertise help customers assess materials, and global production plus Asian capacity growth support long-term supply.

Amit Kumar, President – Asia, Birla Carbon, said, “Asia’s tyre and rubber manufacturers are shaping the next phase of mobility, and their material requirements are becoming increasingly stringent. As the clear leader in our industry, Birla Carbon aims to grow alongside our customers, combining application-focused innovation with dependable local supply. We see performance and circularity as priorities that must progress together. By expanding our capabilities in Asia and strengthening customer partnerships, we aim to help manufacturers meet evolving market needs and build greater long-term competitiveness.”

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