Specialty chemicals manufacturer Shivtek Spechemi Industries Ltd, a flagship company of the Shiva Group of Industries, announced a strategic 14,000 MT capacity expansion at its manufacturing facility in Kurnool, Andhra Pradesh. The company will invest approximately ₹15 crore in the expansion, which will increase production capacity for its core Chlorinated Paraffins (CP) product portfolio. Commercial production from the expanded line is scheduled to begin by July 2028.
Expansion Driven by Rising Market Demand
The decision to expand comes as Shivtek Spechemi’s Kurnool facility is currently operating at 100% capacity utilisation. Meanwhile, sustained supply constraints and strong market demand are creating additional requirements for Chlorinated Paraffins. The expanded capacity will cater to growing demand from several industrial sectors, including PVC compounds, industrial coatings, flame retardants and high-performance lubricants. Consequently, the investment will enable Shivtek Spechemi to increase production, improve supply reliability and address its growing domestic and export order pipeline.
Focus on Sustainable and Energy-Efficient Manufacturing
Amitt Nenwani, Managing Director, Shivtek Spechemi Industries Ltd, said that demand for specialised performance additives across Indian and international markets is outpacing current supply allocations. He noted that operating at peak capacity has clearly highlighted the need for greater scale, faster execution and strict compliance. Therefore, the ₹15 crore investment at Kurnool will help the company respond to existing and potential customer requirements. Importantly, Shivtek Spechemi will integrate zero-emission process technologies and energy-efficient manufacturing systems into the expanded facility. This will allow the company to increase production while simultaneously improving the sustainability of its manufacturing operations.
Expansion Expected to Generate ₹100 Crore Revenue
At full scale, the new capacity is projected to contribute approximately ₹100 crore in annual top-line revenue. In addition, the higher production volumes are expected to improve asset utilisation, enhance operational efficiency and support stronger return on capital employed (ROCE). The expansion could also improve margin efficiency as the company benefits from increased manufacturing scale.
Strengthening India’s Domestic Chlorinated Paraffin Supply
The Kurnool expansion forms a key part of Shivtek Spechemi’s broader growth strategy. By increasing the domestic availability of high-grade Chlorinated Paraffins, the company aims to support India’s growing specialty chemicals industry. The additional capacity will contribute to import substitution and supply-chain resilience, helping customers access critical performance additives from a stronger domestic manufacturing base.
Advancing Green Chemistry and Sustainable Growth
Shivtek Spechemi operates state-of-the-art manufacturing facilities across Andhra Pradesh, Punjab and Gujarat. The company continues to focus on sustainable manufacturing and the development of specialty chemical solutions. As part of the Kurnool expansion, the company plans to deploy advanced eco-friendly process technologies, zero-emission standards and stringent environmental compliance measures. As per the press release, through this investment, Shivtek Spechemi aims to combine capacity growth with energy efficiency, environmental responsibility and operational excellence. Ultimately, the expansion will strengthen the company’s position in the Chlorinated Paraffins market while supporting India’s ambition to become a globally competitive specialty chemicals manufacturing hub.
