Epsilon Carbon ties up with Anagha Refineries to set up molten pitch storage tank facility

Coal tar producer Epsilon Carbon on Monday entered into an agreement with Sri Anagha Refineries to set up the countrys first molten pitch storage tank facility in Mangalore, with a capacity of 10,000 tonnes.According to a company statement, the countrys largest producer of coal tar pitch expects to double the capacity to 7,00,000 tonnes per year by 2025 and earn Rs 2,200 crore in revenue annually from the fifth year of operations.Through this facility, Epsilon will cater to global aluminum smelters, it said.

Coal tar producer Epsilon Carbon on Monday entered into an agreement with Sri Anagha Refineries to set up the country's first molten pitch storage tank facility in Mangalore, with a capacity of 10,000 tonnes.

According to a company statement, the country's largest producer of coal tar pitch expects to double the capacity to 7,00,000 tonnes per year by 2025 and earn Rs 2,200 crore in revenue annually from the fifth year of operations.

Through this facility, Epsilon will cater to global aluminum smelters, it said. Currently 80 per cent of global liquid coal tar pitch is supplied by China to global aluminum smelters.

Once operational, Epsilon expects to enter long-term supply contracts with global customers during this financial year, Saiprasad Jadhav, chief executive of Epsilon, said.

The company aims to produce 3,00,000 tonnes of coal tar pitch annually, he said, adding that with the metal upcycle, a lot of global aluminum customers have been approaching Epsilon.

Epsilon Carbon is the only backward-integrated company having a long term exclusive raw materials purchase agreement and an integrated carbon complex in Karnataka.

Established in 2010, Epsilon closed FY22 with Rs 2,000 crore in top line and a pre-tax profit of Rs 300 crore. It operates a 2.2 lakh-tonne continuous coal tar distillation unit at Vijayanagar in Karnataka and a 1.15 lakh-tonne carbon black plant in Bellary. It also has a pitch melting plant at Sambalpur in Odisha with two smelters with a combined capacity of 50,000 tonne per annum.

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