Nocil unveils €12m investment to expand rubber chemicals output

Mumbai – Indian rubber chemicals producer Nocil Ltd has announced plans to invest INR1.3 billion (€12 million) in expanding rubber chemicals capacity at its Dahej site amid growing local demand.

The brownfield project will expand capacity for "high-utilisation rubber chemicals" through a backward-integrated production facility, Nocil reported 3 Aug.

The investment is in addition to the company's existing INR2.5 billion expansion programme at Dahej, which has entered trial production. (ERJ report)

The latest investment is scheduled for completion in the first half of fiscal year 2028, starting April 2027, and will be funded largely through internal accruals, Nocil said.

For the first quarter of fiscal year 2027, Nocil reported a 61% year-on-year increase in net profit to INR280 million, while revenue rose 20% to INR4 billion.

The improvement came as earnings (EBITDA) margin expanded 210 basis points to 11.2%, reflecting "improved operating efficiency and inventory gains."

Sales volumes increased 9% year-on-year, driven by "strong double-digit growth" in the domestic market following the implementation of GST 2.0 (goods & services tax), alongside continued conversion of the company's export pipeline.

"Our performance this quarter reflects consistent execution across both our domestic and export businesses," said managing director VS Anand.

The expanded investment at Dahej, he added, reinforces Nocil's commitment to "structured capacity augmentation, backward integration and long-term competitiveness" as India becomes an increasingly attractive manufacturing base.