Supreme Petrochem Ltd is India’s undisputed leader in styrenic polymers - the plastics that go into refrigerators, air conditioners, helmets, packaging and building insulation - with a domestic market share above 50% in both Polystyrene and Expandable Polystyrene. It was formed in 1989 as a joint venture between Supreme Industries Ltd (India’s largest plastics processor) and the Rajan Raheja Group, and began production in 1995, building over 25 years of operating track record. The recurring approach has been to start with a commodity plastic, dominate it, then move steadily into higher-value specialty grades, compounds and insulation products - all funded from internal cash without taking on debt. # Business segments A single integrated polymer platform with five product families - three mature styrenic resin businesses that generate the core cash flows, a recently commissioned engineering-plastic line, and a specialty compounding engine that customises polymers for appliance and auto customers - all running on the same manufacturing backbone at Amdoshi. ## 1. Polystyrene (GPPS and HIPS): the foundation resin that built the franchise **The largest domestic producer of Polystyrene, supplying over half the Indian market from a 300,000-tonne plant, with a deliberate shift from plain-vanilla grades to premium, import-substituting specialties.** - **The appliance industry’s default choice** - General Purpose Polystyrene (GPPS) is the transparent, FDA-compliant plastic used in refrigerator interiors, medical disposables and stationery, while High Impact Polystyrene (HIPS) is the tough, opaque material for refrigerator cabinets, air-conditioner parts and toys; SPL is the undisputed leader in the appliance sector for Polystyrene. - **Premium grades as a shield against imports** - cheap Polystyrene from Thailand, Taiwan, Iran and China puts constant price pressure on the business, so SPL developed specialty grades - including a high-gloss HIPS for air-conditioner styling parts that is not easily available internationally - and keeps prices in line with international levels for utility grades. - **A rival’s exit handed it volume** - the plant of the second-largest Polystyrene player in India shut down in fiscal 2021, which contributed directly to SPL’s volume growth and reinforced its market position. - **Built from scratch, expanded steadily** - the plant was originally set up at grass-root level with 66,000 tonnes of annual capacity, expanded to 272,000 tonnes by FY21, and reached 300,000 tonnes of Polystyrene capacity by December 2022. ## 2. Expandable Polystyrene (EPS): the lightweight foam that insulates and protects **The business leader in EPS with over 50% market share, running two plants with a combined 148,000 tonnes of capacity, and betting on construction insulation as the next growth wave.** - **Beads that become “Thermocol”** - EPS is made of solid polystyrene beads impregnated with pentane gas; when heated they expand and fuse into a lightweight foam used for packaging consumer durables, fish boxes, helmets, infant car seats, and building insulation. - **Two-plant footprint** - the main plant at Amdoshi in Maharashtra was recently enhanced to 115,000 tonnes, while a second plant at Manali near Chennai adds another 33,000 tonnes, giving SPL a national manufacturing presence for a product that is not imported into India in significant quantities. - **Construction is the untapped prize** - globally, half of all EPS goes into construction, but in India only about 12% of sales are for that purpose; SPL promotes systems like EIFS (External Insulation Finishing System) and 3D EPS core panels, which have been adopted in warehouses, a mall, a hospital and AIIMS. - **Building a circular economy** - the company has documented over 40,000 tonnes of post-consumer EPS collection and recycling, working with municipal corporations, appliance retailers and hospitals, and runs a pilot mobile compactor for EPS waste with the Indian Centre for Plastics in the Environment. ## 3. Extruded Polystyrene (XPS) Insulation Board: the green-building pioneer **India’s first and only XPS plant, making rigid foam boards under the INSUboard brand for insulating buildings, cold storages and infrastructure projects - a business built as much on market education as on manufacturing.** - **A monopoly in rigid foam insulation** - XPS is a closed-cell foam board with high compressive strength and low water absorption, and SPL remains the only player in the Indian XPS market, operating a 72,000-cubic-metre plant at Amdoshi. - **From Parliament House to the Zojila tunnel** - INSUboard is a recognised product in all CPWD and government projects and has been used in the new Parliament House, institutional buildings, hospitals, and the 14.2-kilometre Zojila pass tunnel project. - **Demand swings with big projects and pandemics** - XPS sales grew 25% in FY25, but had shrunk 15% the year before when vaccine-packaging demand faded and large projects were delayed; during COVID, refrigerated-truck business picked up strongly to transport vaccines. - **Spent more on marketing than on the plant** - because XPS was an unfamiliar product in India, SPL invested more money in creating awareness than on the actual capital cost, trained over 100 masons in insulation application at its Nagothane works, and built a distribution network of 64 distributors and 11 system partners. ## 4. Acrylonitrile Butadiene Styrene (ABS): the engineering-plastic bet **A newly commissioned 70,000-tonne plant using a first-of-its-kind continuous mass polymerisation technology from Italy, targeting the automotive and appliance markets that currently import half their ABS needs.** - **The tough plastic for dashboards and mixers** - ABS is an opaque engineering plastic with high impact strength and surface quality, used in automotive components, e-scooters, appliances like juicers and water purifiers, helmets and bathroom fittings. - **A cleaner, cheaper way to make ABS** - the plant uses mass polymerisation technology licensed from Versalis (Eni Chemicals Group), which is state-of-the-art in India; compared to the conventional emulsion process, it has lower emissions, lower energy and water use, lower conversion cost, and produces a more consistent product with better colour and stability. - **A rocky start, now running at 65%** - the first line was commissioned in September 2025, but critical equipment malfunctioned in December, forcing a temporary shutdown; manufacturing restarted in March 2026 with modified arrangements in consultation with Versalis, though at 65% of design capacity until the equipment is repaired. - **Imported first, made later** - before building its own plant, SPL spent years importing and marketing natural ABS and manufacturing value-added ABS compounds, so it already understood customer needs and had a market presence when domestic production began. ## 5. Specialty Polymer Compounds and Masterbatches: the customisation engine **A 33,500-tonne compounding business that takes base polymers - including SPL’s own resins - and tailors them with flame retardance, UV resistance, colour and strength for appliance, auto and packaging customers, now extended by the acquisition of Xmold Polymers in the south.** - **Polymers with a purpose** - the SPC division makes ready-to-use grades where specific properties are introduced into GPPS, HIPS, ABS, polypropylene and nylon using functional minerals and additives; applications range from flame-retardant grades for electrical switches to UV-stabilised pre-coloured HIPS for air-conditioner and washing-machine bodies. - **Masterbatches colour and protect** - these are concentrates of colourants and additives that enhance plastics used in dairy and oil packaging, agricultural pipes and films, and consumer goods; black masterbatch goes into irrigation pipes, white masterbatch into food packaging, and colour masterbatches into toys and kitchenware. - **Xmold adds a southern beachhead and auto approvals** - the acquired subsidiary near Chennai is a Tier II supplier to automobile and appliance companies, holds IAFT 16949 certification for the automotive industry including product design, and brings a 15,000-tonne plant with an established R&D facility and customer base in the southern manufacturing hub. - **Internal customer, too** - about 14,000 tonnes of SPL’s own manufactured products are internally transferred to the compounding division and to XPS insulation board production, so the business both sells to the market and feeds the company’s downstream lines. # Group structure and partners **A debt-free, promoter-led standalone manufacturer with one recently acquired subsidiary, a solar-power joint venture that now meets about half its plant’s energy needs, and technology partnerships with European process licensors.** - **Standalone core, one subsidiary** - SPL operates its manufacturing and trading business as a standalone entity and holds an 80% stake in Xmold Polymers, acquired in April 2025, with the remaining 20% to be bought by March 2027. - **Promoter group with a related-party link** - the Promoters category held 62.31% of equity, and several directors sit on the boards of both SPL and The Supreme Industries Limited, with which SPL transacts for sale, purchase and storage of products. - **Solar power cuts conventional energy by half** - a 12.5 MW group captive solar project in Achegaon, Maharashtra, built through a joint venture with Tata Power Renewable Energy (SPL holds 26%), supplies power to the Amdoshi plant for 25 years; together with a 1 MW rooftop solar plant, this has reduced reliance on conventional energy by about 50%. - **Technology from global leaders** - the ABS plant runs on mass polymerisation technology licensed from Versalis (Italy); the original polystyrene plant used technology from Huntsman through ABB Lummus Crest; and cup-grade EPS technology came from Nova Chemicals (USA).