Mumbai: Coal tar derivatives company, Epsilon Carbon has invested Rs 900 crore in setting up an integrated carbon black facility in Bellary region of Karnataka with a total capacity of 3,00,000 tonnes per annum.
The Mumbai-based company is planning to invest in two phases, with the first phase commissioning by Q3 of FY 21 with an investment of Rs 425 crores, said the company's managing director, Vikram Handa to ET.
Carbon black is an additive used in the making of rubber products like tyres, colouring pigment inks and also as electric conducive agents for high-tech devices.
Epsilon Carbon currently operates a 220,000 tpa coal tar distillation facility that caters to 40% of the pitch demand in the aluminum industry, with the new carbon black facility, the company will cater to the tyre, tubes and other rubber-based auto parts segments.
"We are looking at more rubber-based auto parts and not not planning to venture into inks and toners in the phase 1 development," Handa added.
The new plant will be gas-based and will be using waste coke oven gas from JSW steel NSE -0.32 %.