Primo Chemicals is fundamentally a chlor-alkali manufacturer - it runs a single, integrated plant that splits common salt into three building-block chemicals and then converts them into a widening range of industrial products, a business model that has sustained it for five decades. Originally set up in 1975 as a Punjab government enterprise, it was taken private in 2020 by a consortium led by the Flowtech group, renamed Primo Chemicals in 2022, and has since expanded both its core capacity and its downstream portfolio. The recurring approach is vertical integration: make the base chemicals, consume the hard-to-sell chlorine on-site to unlock higher caustic soda output, and keep adding new derivatives that turn by-products into revenue. # Business segments A single integrated chlor-alkali plant that makes caustic soda, chlorine and hydrogen from salt, then converts them into a growing family of downstream chemicals - all on one site, sharing power, water and logistics. ## 1. Chlor-alkali and downstream chemicals: the plant that salt built **Every tonne of caustic soda comes with a fixed quantity of chlorine, so the company's entire strategy turns on finding ways to consume that chlorine profitably rather than letting it become a bottleneck.** - **The core reaction is fixed** - electrolysis of brine (salt water) produces caustic soda, chlorine and hydrogen in a rigid ratio of 1:0.89, which means the company can only increase caustic soda output if it has a home for the chlorine that comes with it. - **One site, many products** - the Naya Nangal plant makes caustic soda lye, caustic soda flakes, liquid chlorine, hydrochloric acid, sodium hypochlorite, hydrogen gas, stable bleaching powder and aluminium chloride, all supported by shared utilities that cut costs across the board. - **Chlorine is the swing factor** - most chlor-alkali producers struggle to dispose of chlorine, but Primo pipes it directly to a promoter-group chlorinated paraffin wax plant inside the same complex and consumes more of it in its own downstream units, so higher chlorine consumption enables higher caustic soda production. - **Flakes cut transport costs** - the company installed a 200 tonnes-per-day caustic soda flaking plant (with a 66,000-tonnes-per-annum nameplate capacity) that converts liquid caustic soda into solid flakes, which are cheaper to ship to distant customers and command better realisations. - **The downstream pipeline is expanding fast** - stable bleaching powder (33,000 tonnes per annum) and aluminium chloride (16,500 tonnes per annum) were commissioned in 2023, and environmental clearance is in place for 26 additional products including monochloroacetic acid, hydrogen peroxide, and a range of agrochemical intermediates, all designed to soak up chlorine and build margin layers on top of the base chemicals. ## 2. Captive power and energy: the cost that defines the business **Power eats roughly three-fifths of the cost of making caustic soda, so owning generation assets is not a side project - it is the main lever on profitability.** - **Hydropower from the grid's doorstep** - the plant sits about 12 kilometres from the Bhakra Nangal Dam's left-bank power station and draws uninterrupted hydroelectric supply, a locational advantage that has shaped the site since inception. - **A captive coal plant that stumbled** - a 35-megawatt coal-and-biomass captive power plant was built to cover 70% of the site's energy needs, but operational issues have kept generation below potential, limiting the cost relief it was meant to deliver. - **Solar is the next move** - in 2026 the company took a 26% stake in a special-purpose vehicle building a 49.998 MW AC solar plant under a captive model, with a power purchase agreement that is expected to save up to Rs 24 crores a year once commissioned. - **Coal supply is locked in** - a 10-year fuel agreement with Northern Coalfields Limited, a Coal India subsidiary, secures the coal pipeline for the existing captive plant, removing one source of input volatility. # Group structure and partners **The company is a single listed entity with a strategically important associate that sits inside its own factory fence, plus a newly formed solar partnership.** - **A privatised legacy** - originally promoted by the Punjab government through PSIDC, the company was acquired in 2020 by a consortium led by Flowtech Industrial Projects and individuals including Sukhbir Singh Dahiya and Jatin Dahiya; PSIDC exited completely and was reclassified as a public shareholder. - **Flowtech Chemicals is both customer and associate** - Primo owns 49% of Flowtech Chemicals, which operates a chlorinated paraffin and hydrochloric acid plant on three acres leased from Primo inside the Naya Nangal complex, and is the primary consumer of Primo's chlorine output, making the two operations deeply interdependent. - **Full consolidation is in motion** - the board has approved acquiring the remaining 51% of Flowtech, targeted for completion by March 2027, which would bring the chlorine customer fully in-house. - **Solar partnership with built-in protections** - the 26% stake in TPCS Private Limited, the solar SPV, comes with pari-passu rights and a right of first refusal on any stake sales by the promoter group, plus veto powers over major corporate actions including new debt beyond project limits and changes to the project's nature.