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)

Yokohama Rubber Co., Ltd. has been recognised as a Supplier Engagement Leader in CDP's 2024 assessment, achieving the highest rating for its efforts in collaborating with suppliers to address climate change.

CDP, a global environmental nonprofit, evaluates companies based on governance, targets, Scope 3 emissions, risk management and supplier engagement. This marks Yokohama Rubber’s third consecutive year and sixth overall time receiving top honours in CDP’s climate change evaluation.

Committed to achieving net-zero CO₂ emissions from its operations by 2050, the company has actively worked to reduce its environmental impact across the supply chain. Since 2013, it has disclosed Scope 3 emissions and implemented the Yokohama Green Procurement Guidelines to encourage sustainable material sourcing. Through annual CSR briefings, Yokohama Rubber engages suppliers in its carbon neutrality initiatives, fostering cooperation to lower emissions throughout the supply chain.

Hankook Tire has published its 16th annual ESG Report for 2024/25, detailing its sustainability achievements and future strategies aligned with its global ESG vision focused on Eco Value Chain, Sustainable Products and Responsible Engagement. The report adopts a comprehensive framework that evaluates social, environmental and financial impacts in line with the European Sustainability Reporting Standards (ESRS), emphasising enhanced biodiversity disclosures compliant with international guidelines like the TNFD.

Key focus areas include eight major management priorities such as climate action, resource efficiency, human rights and innovation. Hankook Tire is also strengthening its response to global ESG regulations, including the EU Deforestation Regulation (EUDR), through a dedicated committee overseeing natural rubber supply chain management.

To support sustainable growth, the company has an ESG Committee under its Board of Directors, operational since 2021. It is also driving circular economy initiatives, such as commercialising Korea’s first tyre using chemically recycled PET fibre and mass-producing EV tyres with 77 percent ISCC PLUS-certified sustainable materials.

Beyond environmental efforts, Hankook Tire engages in social initiatives, including biodiversity conservation, employee development and community partnerships. Its long-term commitment to sustainability dates back to 2009, with milestones like the 2018 sustainable rubber policy and the 2023 board performance evaluations to enhance governance transparency.

ZC Rubber has successfully commenced production of its first all-terrain vehicle (ATV) tyre at its Indonesian subsidiary, PT. Matahari Tire Indonesia (MTI), marking a strategic expansion into specialised mobility segments.

MTI’s state-of-the-art factory, covering 500,000 square metres, is strategically located in a region rich in natural rubber resources. Equipped with advanced digital technology and staffed by a highly skilled workforce, the facility is poised to meet the growing demand for high-quality tyres in both local and international markets, including the United States.

ZC Rubber’s investment in Indonesia provides access to vital raw materials and strengthens its global supply chain. The facility is poised to serve both local needs and support ZC Rubber’s international market expansion, reinforcing the company’s commitment to innovation, quality, and sustainable development.

South Korean tyre maker achieves second consecutive quarterly revenue record despite raw material pressures

South Korean tyre manufacturer NEXEN TIRE reported record quarterly revenue for the second consecutive period on Thursday, posting consolidated sales of 804.7 billion won in the second quarter as increased European production capacity and recovering US demand offset global automotive sector uncertainties.

The company’s operating profit reached 42.6 billion won in the three months to June, remaining stable from the previous quarter despite ongoing pressure from elevated raw material costs that began in late 2024.

The strong performance was primarily attributed to enhanced production following the completion of Phase 2 expansion at NEXEN TIRE’s Czech Republic facility, combined with targeted regional sales strategies that secured key supply volumes across both original equipment and replacement market segments.

US sales strengthened further in the second quarter, building momentum from the first-quarter recovery after experiencing a temporary decline in the latter half of 2024. Expanded retail distribution partnerships supported the improvement, the company said.

In the Asia-Pacific region, Australia and Japan delivered record sales volumes, driven by continued investment in distribution network development.

Ocean freight costs provided some margin relief, though the company continued to face headwinds from raw material price increases that began in late 2024. However, NEXEN TIRE expects improved profitability in the second half as key input costs have been trending downward since early 2025.

During the first six months of 2025, the tyre maker began supplying original equipment tyres for 11 vehicle models, including the Hyundai NEXO, Kia EV4 and TASMAN, whilst deepening partnerships with global automakers, including premium brands.

The company said it would implement gradual price adjustments in the US market in response to recent tariff policy changes, focusing on expanding high-margin products and strategically reallocating global supply volumes to mitigate profitability risks.

“Despite persistent macroeconomic challenges, NEXEN TIRE achieved record-breaking sales for two consecutive quarters by maintaining balanced growth across both OE and RE segments,” said Chief Executive John Bosco (Hyeon Suk) Kim. “We will continue to reinforce our global competitiveness through strategic partnerships and region-specific initiatives.”

NEXEN TIRE has been building brand awareness through localised marketing efforts across North America, Europe, the Middle East, and the Asia-Pacific regions whilst expanding its retail presence through strategic distributor partnerships.