VCI Chemicals Coal Tar Plant Under Development

26 December 2025

​VCI Chemicals is pleased to announce steady and encouraging progress on its 1.12 LTPA Coal Tar Plant project. Construction activities are progressing swiftly, and the company has successfully received all major machinery at the project site, with total equipment value exceeding ₹135 crore. The project is being executed largely in line with planned timelines, and the plant is expected to become operational during Q3–Q4 of FY26. Once commissioned, the facility is expected to significantly enhance VCI’s product mix, scale, and operational efficiencies. The project is projected to generate healthy financial performance, with average EBITDA margins of approximately 14.4% and PAT margins of around 8.5% during FY27–FY34, driven by economies of scale, improved product realization, and cost efficiencies such as reduced fuel and nitrogen gas consumption. The plant is also expected to strengthen VCI’s domestic and export presence, with total revenues projected at around ₹609 crore at steady-state operations, while maintaining positive cash flows and a robust balance sheet over the long term. This project represents a key strategic milestone in VCI Chemicals’ growth journey and reinforces the company’s commitment to sustainable and profitable expansion.