### **Overview** Primo Chemicals Limited, formerly known as Punjab Alkalies & Chemicals Ltd. (PACL), is the **largest producer of caustic soda in North India** and a leading integrated player in the Indian chlor-alkali chemical industry. Incorporated in 1975 and rebranded in 2022, the company has over five decades of operational experience and is headquartered at **Naya Nangal, Ropar, Punjab**. With a strategic focus on **vertical and forward integration**, **product diversification**, and **energy efficiency**, Primo Chemicals has emerged as a key supplier of essential industrial chemicals to a wide range of sectors across India and is poised for further growth domestically and internationally. --- ### **Core Products & Production Capacity** - **Primary Product**: - **Caustic Soda Lye**: **500 tonnes per day (TPD)** (~165,000 tonnes annually), produced using advanced HOECHST-UHDE membrane cell technology. - **Other Key Products**: - Caustic Soda Flakes (200 TPD plant) - Hydrochloric Acid - Liquid Chlorine - Sodium Hypochlorite - Hydrogen Gas - Stable Bleaching Powder (SBP) – 33,000 MTPA - Aluminium Chloride - Paracetamol API (under development) The company produces both primary chemicals and high-value by-products, enabling **efficient utilization of co-products (chlorine and hydrogen)** and enhancing overall profitability. --- ### **Manufacturing & Technology** - **Technology**: Uses **6th generation HOECHST-UHDE membrane cell technology**, ensuring: - High product purity - Energy efficiency - Reduced environmental impact - Lower specific power consumption - **Plant Location**: Strategically located at **Naya Nangal**, benefiting from: - Direct water supply from the **Sutlej River** - Proximity to the **Bhakra Nangal Dam**, providing uninterrupted hydroelectric power - Dedicated **in-plant railway line** for cost-effective logistics of raw materials (salt, coal) and finished goods - **Captive Infrastructure**: - **35 MW coal and biomass-based captive power plant**, operational since FY24, meeting ~70% of energy needs. This significantly reduces exposure to grid power volatility and cuts energy costs (historically ~65% of total production cost). --- ### **Vertical & Forward Integration Strategy** Primo Chemicals is **one of the most vertically integrated players** in the chlor-alkali sector: - Acquired **49% stake in Flow Tech Chemicals Pvt. Ltd. (2022)**, a manufacturer of chlorinated paraffin and HCl, with plans to acquire the remaining 51% by Q3 FY25. - Supplies **chlorine gas via pipeline** to a promoter group’s Chlorinated Paraffin Wax (CPW) plant. - Pipelines deliver **hydrogen gas** to an external bottling unit and to internal operations as fuel. - **In-house chlorine consumption** is high, overcoming a common industry bottleneck and improving **chlorine utilization and caustic soda output**. --- ### **Recent Expansions & Projects (FY23–FY24)** Significant growth investments completed in recent years: - **Capacity Expansion**: Increased caustic soda production from **300 TPD to 500 TPD (FY22–23)**. - **New Plants Commissioned in FY24**: - **200 TPD Caustic Soda Flakes Plant** - **50 TPD Aluminium Chloride Plant** - **100 TPD Stable Bleaching Powder (SBP) Plant** – caters to growing demand in **water treatment, hygiene, and aquaculture** - **35 MW Captive Power Plant** - **Environmental Clearances Received** for: - Aluminium Chloride plant - Paracetamol API manufacturing - Hydrogen Peroxide project (in planning phase) - Added **26 new products** post-approval from Punjab Pollution Control Board. --- ### **Diversified Market Reach & Applications** Products serve a broad base of industries, ensuring **resilient demand**: - **Pulp & Paper**: Caustic soda in pulping, sodium hypochlorite for bleaching - **Textiles**: Textile bleaching (sodium hypochlorite), mercerization (caustic soda) - **Water Treatment**: Liquid chlorine, sodium hypochlorite, stable bleaching powder - **Aluminium**: Caustic soda in Bayer process - **Pharmaceuticals**: Hydrogen gas (hydrogenation), caustic soda, Paracetamol API (upcoming) - **Detergents & Soaps**: Caustic soda as a key raw material - **Food Processing**: Hydrochloric acid, hydrogen gas - **Aquaculture & Sanitation**: SBP for disinfection Growing post-pandemic focus on hygiene has boosted demand for **stable bleaching powder**, a recent strategic addition. --- ### **Strategic Advantages** 1. **Economies of Scale**: Largest caustic soda producer in North India with 500 TPD capacity. 2. **Logistical Edge**: Proximity to key markets in North India, rail connectivity, and reduced transport costs. 3. **Energy Security**: Captive power reduces dependency and insulates against rising energy costs. 4. **Operational Efficiency**: Advanced technology, pipeline-based by-product distribution, and lean operations. 5. **Environmental Sustainability**: Transition from mercury cell to membrane technology (completed in 1998), eco-friendly operations, and future-ready infrastructure. 6. **Long-Term Agreements**: Secured 10-year coal supply agreement with **Northern Coalfields Limited (NCL)**, a Coal India subsidiary. --- ### **Financial & Operational Metrics (as of FY23)** - **Revenue**: ₹7,074 million (FY23) - **Employees**: Over **400** - **Energy Cost Reduction**: Captive power expected to cut ~65% of total production cost related to energy. - **Environmental Compliance**: MOEF clearance obtained for major new projects. ---