The Matix Group, a prominent player in India’s fertiliser sector, is set to make a significant expansion in the industrial and speciality chemical manufacturing space with a planned investment of Rs 2600 crore.
This investment will further strengthen the group’s foothold in the state of West Bengal, where it has established its presence with a large fertiliser manufacturing unit. The company, led by its chairman, is gearing up to build eastern India’s first Iso-Propyl Alcohol (IPA) manufacturing plant. The project is part of Matix’s broader strategy to diversify its portfolio into the industrial chemicals sector. The planned facility will have an annual production capacity of 50,000 tonnes, making a substantial contribution to meeting domestic demand for this crucial industrial chemical. IPA, which is widely used in industries such as pharmaceuticals, personal care, and cleaning products, is an essential component in many sectors and has seen growing demand in India.
Situated within Matix’s existing complex at Panagarh Industrial Park, the new plant will complement its existing operations, which include a 1.3-million-tonne urea plant. The industrial park, already a hub of activity, will be the site for the new manufacturing unit slated for commissioning in FY2027. Officials highlighted that this investment is in line with the company’s commitment to India’s Atmanirbhar Bharat mission, aimed at bolstering the nation’s self-reliance in the industrial chemicals sector. Matix’s expansion is also seen as a step towards reducing reliance on imports and fostering domestic production capabilities in critical sectors. The decision to establish an IPA manufacturing facility follows a comprehensive study conducted by Matix in collaboration with global consulting firm McKinsey & Company. The research focused on identifying the most strategic product portfolios for expansion in India’s chemical manufacturing sector, with a particular emphasis on meeting the needs of key industries and aligning with national industrialisation goals.
This new venture also showcases Matix’s ability to leverage its existing infrastructure to expand into new sectors. The company’s experience in building and operating large manufacturing plants will be instrumental in the successful execution of the IPA facility. As experts in the fertiliser industry, Matix’s expansion into industrial and speciality chemicals represents a strategic move to diversify its operations and tap into a rapidly growing market segment. To ensure a smooth supply chain for the new plant, Matix has entered into a memorandum of understanding (MoU) with AdPlus Chemicals and Polymers Private Limited, a subsidiary of Haldia Petrochemicals Limited. This collaboration will ensure a steady domestic supply of Acetone, a key raw material required for IPA production. The partnership is expected to strengthen Matix’s supply chain and enable the company to maintain a reliable production process for IPA.
The move is also expected to have broader economic implications for the region. West Bengal, already home to Matix’s large-scale fertiliser unit, will benefit from the addition of a chemical manufacturing facility. The state is poised to see an increase in industrial activity, potentially creating new job opportunities and further cementing its status as a key industrial hub in eastern India. Experts believe that this investment could also lead to a wider revitalisation of the industrial sector in the region, especially in the context of national economic growth. Matix’s expansion into the industrial chemicals sector comes at a time when India is actively seeking to strengthen its domestic production capabilities in critical chemicals and materials. With the country’s growing emphasis on self-reliance, initiatives like this one are likely to play a crucial role in reducing the import dependency of essential chemicals, especially those used in pharmaceuticals, personal care, and other high-demand sectors.
The IPA plant will not only cater to domestic markets but also open up possibilities for future export potential, adding a new dimension to India’s chemical exports. This move aligns with the broader goals of the Indian government to boost its manufacturing sector and increase exports as part of its Make in India initiative. While Matix is taking bold strides in the chemical sector, the company’s approach is grounded in sustainability. As with its fertiliser operations, the company is expected to focus on incorporating environmentally-friendly practices into the design and operation of the new plant. The focus on sustainability will be critical in ensuring that the new facility aligns with global standards for eco-friendly manufacturing, supporting India’s ambitions for a greener economy.
As Matix looks towards the future, the planned IPA manufacturing plant stands as a testament to the company’s long-term vision and its commitment to both India’s industrial growth and its own role in the national economy. With a clear focus on sustainability, self-reliance, and operational excellence, Matix’s latest venture is poised to make a significant impact on the chemical manufacturing landscape in India.
Matix Group to Invest Rs 2600 Cr in Chemical Manufacturing Expansion
