Chemplast to Invest ₹340 Cr in Refrigerant Gas Project Amid FY25 Import Hit.

Specialty chemicals major Chemplast Sanmar is set to invest ₹340 crore in a greenfield project dedicated to producing R32 refrigerant gas, a move aimed at strengthening its presence in the specialty chemicals sector.

R32 gas is increasingly preferred globally in HVAC and cooling systems due to its significantly lower global warming potential compared to traditional refrigerants, aligning with growing environmental standards.

According to a company statement, this new project is part of Chemplast Sanmar's broader strategy for growth within the specialty chemicals space. The company is also expanding its Custom Manufactured Chemicals (CMC) division. Phase 2 of the multi-purpose production block (MPB 3) in the CMC division became operational in the fourth quarter of fiscal year 2025. Project activities for Phase 3 of MPB 3 and initial civil and infrastructure work for MPB 4 are currently underway.

The CMC business demonstrated strong performance in FY25, reporting a year-on-year revenue growth exceeding 80 per cent.

Meanwhile, the Chennai-headquartered company reported its financial results for the quarter ended March 31, 2025. Chemplast Sanmar saw its net loss widen to ₹54 crore for the quarter, compared to a net loss of ₹31 crore in the corresponding period of the previous fiscal year.

However, the company's operational performance showed improvement, with Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) rising to ₹37 crore in Q4 FY25 from ₹21 crore in Q4 FY24. Revenue from operations also grew by 10 per cent year-on-year, reaching ₹1,151 crore for the quarter, up from ₹1,051 crore in the same period last year.