Specialty chemicals maker Shivtek Spechemi is investing Rs 150 crore to build a new manufacturing facility at Pungam, Gujarat, aimed at cutting India’s reliance on imported chlorinated polyethylene (CPE) and hydrogen peroxide, the company said on September 24, 2026. The 21-acre plant sits near the Delhi-Mumbai Expressway, roughly 45 km from Hazira Port, giving it direct access to import and export infrastructure.
The Gujarat facility will produce specialty chemicals including semiconductor-grade isopropyl alcohol, hydrogen peroxide and chlorinated polyethylene, while a separate unit in Rajpura, Punjab will house a dedicated CPE production line. The company is also building a 24,000 KL tank farm at the Gujarat site designed to hold four to five months of inventory, reducing its dependence on third-party port storage.
Why Is Shivtek Spechemi Investing in Chemical Plant Expansion Now?
India currently imports an estimated 2,000-2,500 tonnes of chlorinated polyethylene every month, largely from China, to serve construction and building-materials applications. Shivtek Spechemi’s Rajpura CPE pilot project is targeting output of 500 tonnes per month by FY2027-28, positioning the company to displace a meaningful share of those imports as domestic housing and infrastructure programmes drive demand for PVC-alternative building materials.
What Does This Mean for India’s Chemical Industry?
The investment reflects a broader import-substitution push across India’s specialty chemicals sector, with companies racing to localise supply chains for products historically sourced from China. Combined with larger peers such as Epigral, which announced a Rs 650 crore Dahej capacity expansion in the same week, Gujarat is cementing its position as the hub for India’s next wave of chemical manufacturing capacity, particularly around the Hazira-Dahej industrial corridor.
Market Reaction and Industry Response
While Shivtek Spechemi has not disclosed specific analyst commentary alongside the announcement, the timing coincides with heightened investor interest in Gujarat-based specialty chemical capex following similar announcements from Gujarat Alkalies and Chemicals and other regional players in 2026. Industry watchers note that captive storage infrastructure, like Shivtek’s planned 24,000 KL tank farm, is increasingly seen as a competitive differentiator for chemical exporters and importers alike.
What Happens Next?
The Rajpura CPE pilot line is expected to reach its 500-tonnes-per-month target by FY2027-28, while the Gujarat facility’s construction timeline will determine how quickly Shivtek Spechemi can begin import substitution for hydrogen peroxide and semiconductor-grade isopropyl alcohol. Progress on both fronts will be closely watched as a bellwether for India’s broader specialty chemicals import-substitution drive.
Frequently Asked Questions
How much is Shivtek Spechemi investing in its new Gujarat plant?
The company is investing Rs 150 crore in a 21-acre specialty chemicals facility at Pungam, Gujarat, located near the Delhi-Mumbai Expressway and about 45 km from Hazira Port.
What products will the new plant manufacture?
The Gujarat facility will produce semiconductor-grade isopropyl alcohol, hydrogen peroxide and chlorinated polyethylene, while a linked Rajpura, Punjab unit will focus on CPE production.
Why does this investment matter for India’s chemical imports?
India imports 2,000-2,500 tonnes of chlorinated polyethylene monthly, mostly from China; the new capacity is designed to substitute a portion of those imports with domestic production by FY2027-28.
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