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Caprolactam Plant in Kerela Resumes Operation:  Domestic Supplies to Boost Up

Caprolactam Plant in Kerela Resumes Operation: Domestic Supplies to Boost Up

  • 07-Sep-2021 5:02 PM
  • Journalist: S. Jayavikraman

India’s public sector fertilizer giant, Fertilizers and Chemicals Travancore (FACT) has restarted operations of its caprolactam plant of 50 KTPA capacity at Udyogamandal, Kerala. The plant operations had been ceased down in 2013 as it had fallen prey to the rising prices of natural gas feedstock resulting in its inadequate supply. With the resumed operation of the caprolactam plant, the company is targeting to add INR 700 Cr to its annual turnover. 

Caprolactam, which is a cyclic amide of caproic acid, is predominantly used as a raw material for the production of Nylon-6, a widely used synthetic polymer in textile and industrial yarns. Moreover, the engineered Nylon-6 plastics are nowadays being heavily employed to substitute metal bearings and bushings in the automotive sector. India’s total demand for caprolactam in 2018 was 144 KT. The ChemAnalyst market analysis indicates the annual demand for caprolactam to remain over 150 KT in the coming ten years with the projected CAGR of 5.6%. 

FACT and Gujarat State Fertilizers & Chemicals Limited (GSFC) are the only caprolactam manufacturing companies in India. With the recommencement of the caprolactam plant, FACT will be able to exercise better control over its downstream production of ammonium sulphate fertilizer that is expected to be around 225 KT per annum. 

As per ChemAnalyst, the Indian caprolactam market holds tremendous opportunity for growth with limited competitors and rising demand for caprolactam downstream products driven by the improving economies of the population as a whole. The resumption of the caprolactam manufacturing facility is expected to improve its supplies in the end-use sector to a significant extent. FACT being a known and trustable corporation in India is anticipated to enjoy a significant share in the domestic market. This move will also eliminate the country’s dependence on imports to satiate the local demand thereby befitting to the ideology of India’s ‘Atma Nirbhar Bharat’ program.

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