India’s Carbon Black Capacity to Increase 25–30% by FY27 Driven by Export Demand and Specialty Products
India's carbon black production capacity is projected to grow by 25-30% by fiscal year 2027, fueled by rising export demand and specialty product lines. Companies like PCBL are expanding capacity aggressively with new plants and specialty lines, while the broader market outlook shows increasing domestic and global demand, particularly from automotive, tire, and specialty chemical sectors.
India is poised to significantly expand its carbon black production capacity by 25-30% by FY2027, supported by escalating export demand and a strategic focus on specialty carbon black products. Leading manufacturers such as PCBL are undertaking aggressive expansion plans, including establishing new plants supplying 150,000 metric tonnes per annum (MTPA) and specialty lines to reach nearly 1 million MTPA capacity by FY 2027-28. These expansions are located strategically near major ports to facilitate exports. The growth aligns with a booming global carbon black market, projected to reach USD 21.8 billion by 2027, driven predominantly by rising demand in automotive tires and specialty rubber applications. India, as part of the Asia-Pacific region—which dominates global carbon black consumption—benefits from growing demand due to the expansion of automotive, paint, coatings, and specialty rubber industries. Specialty products in the carbon black segment are expected to contribute significantly to revenue growth, driven by applications requiring advanced properties such as conductivity and UV protection. The Indian market is also seeing investments in green power projects alongside capacity expansions, indicating a wider trend toward sustainability. Overall, the sector’s growth reflects a confluence of increasing global demand, technological advancements, and strategic capacity investments, positioning India as a key supplier in the global carbon black industry.
