Pondy Oxides and Chemicals Limited has approved the establishment of a new Copper Recycling Plant in Thervoykandigai, Tamil Nadu, with a project cost of approximately ₹200 Crores. The facility, scheduled for commissioning by December 2026, aims to expand the company's value-added recycling capacities and strengthen its commitment to circular economy principles. The project will be funded through internal accruals and targets both domestic and export markets.

The new plant will feature an installed capacity of 36,000 MTPA of LME Grade A Copper Cathode, to be implemented in two phases of 18,000 MTPA each. It will utilize integrated pyro-refining and electro-refining technology. This strategic initiative is designed to diversify the company's non-ferrous recycling portfolio, leverage its established recycling expertise, and reduce India's dependency on copper imports.

Project Details

Business Imperative

The Copper Recycling Plant is strategically aimed at expanding, diversifying, and forward integrating into the non-ferrous recycling portfolio with value-added capabilities. It seeks to position Pondy Oxides and Chemicals Limited as a competitive global recycled copper supplier while reinforcing its commitment to sustainable and responsible manufacturing. The project also intends to reduce the import dependency of copper from foreign countries.

Upon successful commissioning, the plant is expected to bolster revenue and profitability through the commercialization of value-added recycled copper. It aims to enhance the product mix and strengthen margins through premium copper offerings, while delivering operational synergies across procurement, logistics, and sales functions. Additionally, the facility will help reduce the carbon footprint through increased utilization of recycled copper and generate direct and indirect employment to foster regional socio-economic development.

Pondy Oxides & Chemicals has outlined a significant capital investment plan and medium-term growth targets, announcing a ₹180 crore investment earmarked for FY27. The company has set ambitious operational and financial milestones, targeting volume growth of over 15%, revenue growth of more than 20%, and an EBITDA margin exceeding 8% by 2030.

Investment and Growth Targets

The company's announced plan reflects a structured approach to scaling operations and improving financial performance over the coming years. The key parameters of the growth roadmap are summarized below:

Key Highlights

The announced targets underscore Pondy Oxides & Chemicals' focus on the following growth priorities:

• Capital Deployment: A ₹180 crore investment planned for FY27 to support business expansion.
• Volume Expansion: A target of over 15% volume growth as part of the medium-term strategy.
• Revenue Scaling: Revenue growth of more than 20% targeted as part of the broader growth roadmap.
• Margin Improvement: EBITDA margin aimed to exceed 8% by 2030, reflecting a focus on operational efficiency alongside top-line growth.

The combination of a defined capital investment plan for FY27 and clear financial performance benchmarks through 2030 indicates that Pondy Oxides & Chemicals is pursuing a multi-year growth strategy. The targets encompass both volume-led expansion and margin enhancement, with the EBITDA margin goal of exceeding 8% by 2030 serving as a key profitability milestone for the company.