Shivtek Spechemi Industries has opened a new chemical manufacturing plant spanning over one million square feet near Hazira, Gujarat, as part of a broader expansion drive that aims to lift the company’s total production capacity to 2,50,000 metric tonnes per annum (MTPA) by 2027-28. The Hazira facility follows a separate announcement on September 3, 2026, in which the specialty chemicals maker said it would invest approximately ₹15 crore to add 14,000 MT of capacity at its existing Kurnool plant in Andhra Pradesh, which is currently running at 100% utilisation.
The twin expansions position Shivtek Spechemi, a specialty chemicals producer known for its chlorinated paraffins (CP) portfolio, among a growing group of mid-sized Indian chemical companies investing in capacity even as larger players like Haldia Petrochemicals pursue multi-thousand-crore upstream projects. Commercial production from the expanded Kurnool line is scheduled to begin by July 2028, while the Hazira plant adds an entirely new manufacturing base in Gujarat’s industrial corridor.
Why Is Shivtek Spechemi Expanding Capacity Now?
The company’s Kurnool facility operating at full utilisation left little room to meet growing demand for its chlorinated paraffins and specialty chemical products, prompting both the Kurnool debottlenecking investment and the entirely new Hazira facility. Gujarat’s Hazira belt is a well-established chemicals and petrochemicals hub with access to port infrastructure, making it an attractive location for companies looking to scale specialty chemical production for both domestic consumption and export markets.
What Does This Mean for India’s Specialty Chemicals Sector?
Shivtek’s expansion reflects a broader trend of capacity building across India’s chemicals industry, which the Department of Chemicals and Petrochemicals has targeted to grow into a $1 trillion sector by 2040. Specialty chemicals producers like Shivtek serve downstream industries including plastics, PVC processing, and industrial manufacturing, where chlorinated paraffins are used as plasticisers and flame retardants. Additional domestic capacity could help reduce import dependence in these niche but important chemical categories, supporting the broader manufacturing ecosystem that relies on stable, competitively priced specialty inputs.
Market Reaction and Industry Response
Industry observers have noted that mid-sized specialty chemical producers expanding capacity alongside major upstream investments, such as Haldia Petrochemicals’ new phenol-acetone plant, signal broad-based confidence in India’s chemicals demand outlook heading into FY27. The investments come even as the sector navigates near-term supply-chain pressures, including reports of tightening vessel availability pushing up replacement costs for imported chemical inputs across the industry.
What Happens Next?
Shivtek Spechemi’s Kurnool capacity addition is scheduled to reach commercial production by July 2028, giving the market a clear timeline to watch for incremental supply. The newly opened Hazira facility’s ramp-up schedule and product mix will be closely watched by specialty chemicals buyers and competitors alike, as will any further capacity announcements from the company as it works toward its 2,50,000 MTPA target by 2027-28.
Frequently Asked Questions
What is Shivtek Spechemi expanding and where?
The company has opened a new chemical plant spanning over one million square feet near Hazira, Gujarat, and is separately investing about ₹15 crore to add 14,000 MT of capacity at its existing Kurnool, Andhra Pradesh facility.
When will the expanded capacity come online?
Commercial production from the expanded Kurnool line is scheduled to begin by July 2028, while the Hazira facility has already opened as part of the company’s push toward 2,50,000 MTPA total capacity by 2027-28.
Why was the Kurnool expansion necessary?
Shivtek’s Kurnool facility was operating at 100% capacity utilisation, leaving no room to meet additional demand for its chlorinated paraffins and specialty chemical products without adding capacity.
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