Lords Chloro Alkali Limited, manufacturer of industrial and specialty chemicals, has unveiled plans to double its chlorinated paraffin wax (CPW) production capacity from 50 tons per day (TPD) to 100 TPD. Lords Chloro Alkali will complete the expansion by the end of FY2025–26, investing approximately ₹30 crore. They will fully finance the investment through internal accruals and existing sanctioned credit lines.
Strategic Growth Backed by Market Confidence
Institutional analysts view the move as a strategic push to gain scale efficiencies, sustain healthy margins, and capture growing demand across downstream industries. It also underscores Lords Chloro Alkali’s commitment to consolidating its position in India’s rapidly transforming specialty chemicals sector.
Strong Demand Driving Capacity Expansion
The company’s CPW line has been running at nearly 80% utilization—significantly above the industry average—indicating robust customer demand and efficient operations. CPW serves as a key intermediate chemical in PVC products, rubber, paints, adhesives, sealants, and textiles. Its popularity stems from its low-cost flame retardant and plasticizing properties, especially valued in infrastructure-related applications.
Optimizing Resources and Supply Chain Footprint
With this expansion, Lords Chloro Alkali aims to improve fixed cost absorption and enhance chlorine utilization. The company also plans to broaden its supply chain reach within India and export markets. The company will implement the operational scale-up in phases. It plans to commission the first tranche of added capacity in Q4 FY2025–26.
Margin Gains and Earnings Visibility Ahead
As reported by business-news-today.com, analysts expect the project to start delivering earnings accretion from FY2026–27 onward. This growth will be driven by scale benefits and margin resilience, with minimal impact on the balance sheet.
