Shivtek Spechemi Industries is planning a ₹650 crore expansion across Gujarat and Rajasthan to significantly increase its production capacity and support its target of achieving ₹5,000 crore revenue by FY29. The expansion reflects a broader shift in India’s chemical industry, where manufacturers are increasingly moving from commodity products towards higher-value, application-specific and sustainable chemistries.
Shivtek Plans Four-Fold Capacity Expansion
Shivtek currently has an annual production capacity of around 150,000 metric tonnes. The proposed investment is expected to increase this capacity to approximately 650,000 metric tonnes, representing more than a four-fold expansion. The company plans to develop the new capacity at Hazira in Gujarat and in Rajasthan. According to managing director Amitt Nenwani, the locations offer advantages in logistics, infrastructure, industrial ecosystems and long-term scalability. The expansion will enable Shivtek to serve growing domestic demand while strengthening its ability to supply international markets.
Gujarat and Rajasthan Drive Expansion Strategy
Hazira offers Shivtek access to a major port and an established industrial corridor. As a result, the location can support efficient movement of raw materials and finished products while strengthening the company’s export capabilities. Meanwhile, Rajasthan provides access to land, connectivity and a supportive industrial environment. This gives the company additional flexibility to establish larger manufacturing facilities and expand production over the long term.
From Commodity Chemicals to Specialty Products
Shivtek’s growth strategy extends beyond simply increasing production volumes. Over the past three decades, the company has expanded from a relatively small manufacturing operation into a supplier with a much broader product portfolio. The company has increasingly focused on specialty and performance chemicals, particularly products used in pharmaceuticals, agrochemicals, polymers and industrial applications. This shift can potentially improve value realisation while reducing dependence on commodity chemicals, where margins are often more vulnerable to raw material price fluctuations.
Focus on Biodegradable Plasticisers
Shivtek is also expanding its focus on green chemistry through Chlorinated Methyl Ester (CME), which the company positions as a biodegradable green plasticiser. The product is designed for applications including PVC, cables and flexible materials. By combining functional performance with a lower environmental impact, Shivtek aims to address growing demand for more sustainable chemical solutions. The company sees CME as part of a broader pipeline of green chemistry products. If successfully commercialised, these products could provide additional opportunities in markets where sustainability and regulatory compliance are becoming increasingly important purchasing factors.
CPE Development Supports Polymer Applications
Another focus area is Chlorinated Polyethylene (CPE), which Shivtek is developing for applications such as Wood Plastic Composites (WPC) and related materials. Application-specific CPE grades can improve properties such as flexibility, impact resistance and weatherability. Consequently, they can support the performance requirements of WPC and other polymer-based products used in construction and infrastructure. As reported by etchemicals.in, Shivtek is also strengthening its R&D capabilities. The appointment of Dr Trusar D. Bagul as an independent director brings additional technical and chemistry expertise to the company’s innovation efforts.
