### **Overview** Supreme Petrochem Ltd (SPL) is a leading Indian manufacturer and exporter of styrenic polymers, established in 1995 as a joint venture between **Supreme Industries Ltd.** and the **Rajan Raheja Group**. The company has evolved from a commodity-focused producer into a diversified, value-added supplier of high-performance polymers, compounds, and insulation materials, serving over 100 countries globally. SPL holds a dominant market position in **Polystyrene (PS)** and **Expandable Polystyrene (EPS)** in India, with **over 50% combined market share**, and is the **only Indian producer of Extruded Polystyrene (XPS)** insulation boards (sold under the brand **INSUboard**). It is recognized as a **Three Star Export House** by the Directorate General of Foreign Trade (DGFT), valid until March 2028. --- ### **Manufacturing & Capacity** SPL operates **two core manufacturing facilities**: 1. **Amdoshi, Maharashtra** - India’s **first international-scale styrenics complex**. - Current installed capacity: **512,000 TPA** (post-expansion), encompassing: - Polystyrene (PS) - Expandable Polystyrene (EPS) - ABS (Mass ABS) - Specialty Polymer Compounds (SPC) - Masterbatches - Extruded Polystyrene (XPS) - **Mass ABS plant** (70,000 MTA per line) under technical collaboration with **Versalis (Eni Chemicals Group, Italy)**: - Phase I: Commissioned in Q2 FY26 (April–June 2025). - Phase II: Under development; total ABS capacity to reach 140,000 TPA. - This marks India’s **first continuous mass ABS production facility**, offering low carbon emissions, superior consistency, and reduced VOCs. 2. **Manali New Town, Chennai, Tamil Nadu** - EPS manufacturing facility with an installed capacity of **33,000 TPA**. - Serves key industrial hubs in South India, particularly automotive and consumer electronics. --- ### **Strategic Expansion & Greenfield Projects** - **Karnal, Haryana Greenfield Project**: - Acquired **107 acres of land in Munak, Karnal** for a phased **styrenics complex with downstream units**. - Estimated investment: **₹800 crores** (funded via internal accruals). - Planned products: - Engineered plastics (ABS, polycarbonate, PMMA) - EPS 3D panels (1 million sq. meters/year) - Strategic rationale: - Proximity to growing North Indian markets and planned availability of **indigenous styrene monomer from Indian Oil Corporation (IOC) by March 2027**. - Addresses freight and climatic challenges (cold weather insulation needs). --- ### **Recent Acquisitions & Strategic Integration** - **Acquisition of M/S Xmold Polymers Pvt. Ltd** (Effective April 1, 2025): - **Deal Value**: ₹39.27 crores, paid in two tranches. - Tamil Nadu-based Tier II supplier of **engineering polymer compounds** to automotive and home appliance OEMs. - **15,000 TPA** installed capacity. - Integrates into SPL’s **Specialty Polymer Compounds (SPC) business**, enhancing R&D, customer access, and value-added product offerings. - Strengthens presence in **South India’s auto and electronics clusters** (Chennai and Sricity). --- ### **Sustainability & Energy Transition** - **12.5 MW Solar Power Plant**: - Developed in partnership with **Tata Renewable Energy Ltd.** via a dedicated joint venture. - Supplies **50% of the Amdoshi plant’s power needs**, reducing reliance on fossil fuels. - Additional **1 MW rooftop solar capacity** planned for Amdoshi plant. - Part of a broader low-carbon footprint strategy, especially critical for the **Mass ABS** project, which uses an environmentally cleaner process than traditional ABS. --- ### **Product Portfolio & Market Focus** #### **Core Products:** 1. **Polystyrene (PS)**: GP-PS, HIPS for consumer durables, packaging, medical. 2. **Expandable Polystyrene (EPS)**: - Used in packaging (consumer goods, fish/fruit), construction (cold storages, 3D panels), helmets, geofoam. - Indian EPS market grew **6.4% in FY24–25**, though demand slowed due to reduced fish farming. - Competition increasing with new entrants; SPL aims to **grow exports to GCC and Europe** with quality-compliant grades. 3. **Extruded Polystyrene (XPS - INSUboard)**: - Rigid, high-strength insulation board for buildings, refrigerated vehicles, medical packaging. - Only Indian manufacturer with CPWD and state PWD approvals. - Used in flagship projects: **Foxconn, Central Vista, Aerocity, Pragati Maidan**. - Targeting **small-town adoption via architectural outreach and college collaborations**. 4. **Specialty Polymers & Compounds (SPC)**: - Includes **masterbatches (black, white, additive, color)** and **engineering compounds (PP, PS, ABS, FR grades)**. - Applications in automotive, appliances, electronics, agriculture. - Focus on **higher-margin, regulated segments (e.g., flame-retardant, UV-stabilized)**. #### **New Market Applications**: - **ABS** in bathroom fittings, e-scooters, and construction. - **3D EPS Panels** for rapid, energy-efficient construction in North India — **consumes ~1,500 tonnes of EPS annually**, generates **~₹100 crore revenue**. --- ### **Export Strategy** - Exports declined **11% YoY** in Q1–Q3 of FY24–25 due to **Red Sea crisis-driven high freight rates**. - Volumes now **recovering** as freight rates normalize. - Strategic shift toward: - Diversifying customer base (small and mid-sized buyers). - Mitigating U.S. tariff risks. - Targeting **50% increase in EPS exports in FY25–26**. - **GCC and European markets** as key export destinations. --- ### **Financial & Operational Strengths** - **Debt-Free Balance Sheet** with strong internal accruals funding all capital expenditure (including ₹1,200+ crores for recent expansions). - Credit Ratings: **AA-/Positive (CRISIL & IND-Ra)**, Short-term: **A1+**. - ROE: ~27% (FY23), ROCE: ~36% (FY23). - **3-year CAGR in volume sales**: ~11.7%. --- ### **Market Position & Competitive Dynamics** - **Advantages**: - Market leadership in PS and EPS. - First-mover in XPS, Mass ABS, and SPC innovation. - Pan-India presence with growing global footprint. - Strong OEM/ODM relationships. - **Challenges**: - Exposure to **styrene monomer price volatility** (100% imported from Middle East, East Asia). - Rising domestic EPS competition. - Competition from **dumped foreign PS** (Iran, Thailand, Singapore), partially countered by anti-dumping duties. - Red Sea and geopolitical trade disruptions. --- ### **Governance & Leadership** - **Shri N. Gopat** (55 years’ experience) oversees plant operations, supply chain, and expansion projects. - Key leader in scaling Amdoshi from 66,000 TPA to 500,000+ TPA. - Board backed by **Raheja and Taparia families**, with significant interests in Exide, Prism Johnson, and Sonata Software.