With India’s first integrated carbon black complex, Epsilon Carbon Private Limited will have secured raw materials supply with better yield. In an interview, Vikram Handa, MD, Epsilon Carbon, shared the company’s aggressive expansion plans with top-notch manufacturing capabilities.

With the commission of India’s first integrated carbon black plant, Epsilon Carbon Private Limited (ECPL) is upbeat on producing more quality-consistent products with better yield and lesser carbon footprint than its peers.

ECPL, India’s leading coal tar derivatives company, recently commissioned the production at its carbon black complex located in Bellary, Karnataka, which has a capacity of 115,000 tonnes per annum (TPA). The plant produces both tread and carcass grades of ASTM carbon blacks for tyre, non-tyre rubber and plastic masterbatch.

Established in 2010, today ECPL has manufacturing units in Karnataka, Chhattisgarh and Odisha in India. To be a leader in the carbon and coal tar industry globally, the company focuses on environment-friendly and energy-efficient processes. It currently produces coal tar derivatives such as graphite pitch, binder pitch, carbon black oil, anthracene oil and naphthalene used to make aluminium, carbon black, tyres, mechanical rubber goods, graphite and speciality chemicals and other products.

Manufacturing Advantages

ECPL’s Bellary carbon black unit is located in the JSW Steel complex, where it procures coal tar. ECPL has been operating a coal tar distillation plant for the last seven years, and one of the by-products of cold tar distillation is carbon black oil, which it sells to other carbon black manufacturers. The anthracene oil generated in the coal tar distillation process is used as a clean feedstock in the carbon black unit. “Over the last five years, many carbon black manufacturers have been buying the feedstock from us to make their products. When we saw more raw material was becoming available to us, we forward integrated to use our oil to make carbon black. We are the only carbon black manufacturer who is completely backward integrated,” says Vikram Handa, MD, Epsilon Carbon.

Carbon black is used as a reinforcement agent in tyres. Though carbon black is being replaced with silica in passenger vehicle tyres, it is still widely used in commercial tyres. ECPL produces hard and soft grades of carbon black to cater to both tyre and non-tyre applications in domestic and international markets.

One unique advantage that ECPL enjoys is the lower sulphur content in its feedstock. The company uses captive low-sulphur feedstock, which has between 0.3-0.5 percent sulphur as against feedstock with around three percent sulphur used by its peers. The ECPL plant also uses waste coke oven gas from the steel plant as fuel, and tail-gas from the carbon black unit is fed back to the steel complex for pre-heating operations.

The Handa-led company has implemented many first-time pollution control measures in a carbon black plant in India. “The water requirement is very high in carbon black manufacturing. Our plant recovers and reuses water. We have also installed bag filters to collect dust in our warehouses. We really want to set high standards for the first time in India that are accredited and recognised globally,” adds Handa.

The company has already obtained REACH certifications for its products. With the high standards, ECPL focuses on higher Cpk value to maintain consistency in the manufacturing processes that customers look for.

Poised For Growth

According to Handa, in the next four to five years, the carbon industry in India is poised to witness higher growth in line with the tyre industry’s production expansion. According to ICRA, the Indian tyre industry is likely to have a capital expenditure of over INR 200 billion between FY2022 and FY2025. Explaining the growing expectations of tyre companies, Handa says, “In general, if you see, the carbon black industry is coming closer to its customers – mainly tyre companies. For instance, many carbon black producing companies are moving to Eastern Europe – an emerging hub of tyre manufacturing companies. The same trend is expected across the globe.”

“The carbon back is a very voluminous product, shipped in jumbo bags to different parts of the world. So it is challenging to move carbon black around the globe effectively. Though it’s not a very expensive product, the cost of freight becomes a big component in the prices of carbon back. Being closer to your customers always gives an advantage on the cost front,” adds Handa.

In India, many carbon black producers are located near ports, which is logical to import oil feedstock to make carbon black. However, in India, leading tyre companies are situated in the South. Being a backward integrated carbon black producer and closer to the major tyre companies, ECPL will enjoy certain advantages, believes Handa. “Being strategically located in Karnataka, we can send our products to the tyre companies located in the southern part of India in a day, whereas our competitors may take two to three days.” For its customers in other parts of the country, the company will build depots and a strong distribution network. It aims at servicing global markets and has appointed over 30 partners who will assist with local service, warehousing and logistics support to provide just on-time delivery to its customers.

Out of its current total production, around 80 to 85 percent is of ASTM grades, while the rest is speciality grades. For the time being, the company will continue to focus on ASTM grades to cement its position in the market. “I think in our future expansion, we will look at niche products, but currently, we’re focused on just ASTM goods,” explains Handa.

The company currently exports to Brazil, Indonesia, Vietnam and China. In its Phase- 2 expansion plans, ECPL will invest INR 3.5 billion, which will bring the total investment close to INR 9 billion, to expand its capacity by another 65,000 TPA. The company plans to further expand its capacity of carbon black to a total of 300,000 TPA. “So, engineering, environmental clearance and all these things are envisaged for a 300,000 TPA-complex, which will be the largest single-location carbon black plant in India that will bring cost efficiency and consistent quality products for its customers,” says Handa.

Right now, around 60 percent of production is consumed locally, and the rest is exported. In the future, it targets to take up local supply to 80 percent in the next three months. On the segment side, the company aims to supply around 70 percent to tyre companies and the remaining to non-tyre companies. Currently, the ratio is other way around.

Handa also stresses the need for effective collaboration between tyre companies and carbon black makers. He says his company looks at the growth synergies with tyre companies catering to demand generated due to the aggressive expansion of the tyre production. “We at Epsilon Carbon Black look at developing better products tapping into all types of demand of tyre companies in future. So it’s essential to work with tyre companies jointly. You don’t want a situation where tyre companies are expanding production, and the larger requirement of carbon black will be met through imports. And we, as a carbon black manufacturer, also do not want to be an opportunist and export our product to take price advantage. We look for long term partnerships,” explains Handa.

At the start, the company’s focus is really to qualify as a supplier to our customers. “Today, more than 1,000 customers have used carbon black. Some of them might have bought 25 kg, some 100 tonnes, but the fact is that everybody is trying a carbon black, getting used to it, qualifying it, and that opens the door to sell more to the customers hopefully,” concludes Handa. (TT)

As part of a strategic effort to increase its presence in the region's premium original equipment (OE) market, Kumho Tire has confirmed its plans to establish its first tyre production facility in Europe by 2027.

The company has shortlisted Poland, Serbia and Portugal as possible locations for the plant, which is projected to need an investment of more than KRW1 trillion (USD 705 million). The decision is closely linked to Kumho’s ambition to strengthen its partnerships with European automakers and was revealed by Kumho Tire CEO during the South Korean premiere of Kumho's new Ecsta Sport tyre line.

Kumho has recently secured OE supply contracts with major brands such as Mercedes-Benz, BMW and Volkswagen Group. At the moment, Kumho runs eight tyre production plants in China, Vietnam, South Korea and the US. Its capacity to compete in the premium OE market, however, has come to be perceived as being constrained by the absence of a European production base. Through the benefits of local production, the new facility will improve response to European client requests, save freight costs and shorten delivery times, all of which will strengthen the company's partnerships.

Sentury Tire USA has opened pre-enrolment for its two associate dealer programmes (ADPs), the Delinte HYPERDRIVE Associate Dealer Program and the Landsail Elyte Associate Dealer Program, underscoring the company’s commitment to rewarding dedication and partnership to the Landsail and Delinte brands.

The ADPs, which are customised for each brand and intended to encourage dealers, will formally start on 1 June 2025. Both programmes give dealers access to special benefits, incentives and strong tools to help them expand their businesses. This involves dependable customer service, effective marketing and worthwhile financial incentives to promote dealers' success at every stage.

Beginning in Q3, dealers may earn up to USD three per tyre through the Delinte HYPERDRIVE Associate Dealer Program. Dealers can receive retroactive benefits for purchases completed in Q2 if they register before 1 June. The awards are available for all Delinte PTR, LTR and the new DV3 LMD AS last-mile delivery tyres. For all Landsail PTR and LTR tyres, independent dealers that sign up for the Landsail Elyte Associate Dealer Program can also earn up to USD three per tyre. For customers who sign up by June 1, the new LMD 100 AS last-mile delivery is also eligible for the benefits and will get the same early bird incentive for Q2 2025.

No initial order is necessary. Dealers only need to register to begin making money. According to the monthly programme rewards structure, 48 tyre purchases each month are eligible for a reward of USD one per tyre, 120 tyres are eligible for a reward of USD two per tyre and 240 or more tyres are eligible for a reward of USD three per tyre.

ENSO, a London-based tyre manufacturer engaged in the production of sustainable tyres specially designed for electric vehicles (EVs), has launched its new ENSO Premium range of EV-specific ultra-high-performance (UHP) tyres aimed at drivers of high-performance EVs such as the Tesla Model 3 and Model Y.

Specifically designed for electric passenger vehicles, the ENSO Premium range comes with A/A EU-label ratings for both energy efficiency and wet grip. The tyres are designed to provide safety, increased range and a reduced total cost of ownership. Conventional tyre designs frequently fall short of the special performance needs of electric vehicles, which include greater vehicle weight, regenerative braking and higher torque loads. By lowering tyre wear and rolling resistance, ENSO Premium takes care of these issues.

The company is an authorised provider of replacement tyres for LEVC's electric taxis and has partnered with Uber to install its tyres in high-mileage metropolitan areas. The company now plans to grow throughout Europe and North America, and with ENSO Premium, it is now offering its services to individual EV owners throughout the United Kingdom. According to ENSO, the range offers advantages including longer tyre life and fewer replacements, lower energy usage, fewer charging stops and lower CO₂ emissions and tyre particle pollution.

Gunnlaugur Erlendsson, CEO and Co-Founder, ENSO, said, “We’re plugging a long-standing gap in the tyre market by offering EV drivers a purpose-built, affordable, premium EV tyre alternative that matches the innovation of their EV.”

Kraton Corporation, a leading global sustainable producer of specialty polymers and high-value bio-based products derived from pine wood pulping co-products, has announced a general price hike in North America for its SBS, SIS and HSBC product lines with effect from 1 May 2025.

Following a careful analysis of the effects of recently implemented tariffs, related cost increases and a conclusion that the company cannot independently absorb these repercussions, Kraton is adopting these pricing hikes, according to a company statement. The company further said that it will keep an eye on the scene and reassess these measures promptly in the event that conditions and US import tariffs alter.