Lords Chloro Alkali Limited , a key player in the chloro-alkali sector, has announced significant expansion plans aimed at enhancing its production capabilities and diversifying its product portfolio. The company's board of directors approved these strategic initiatives during a meeting held on November 10, 2025.

Expansion Plans

Caustic Soda Plant Expansion

The company plans to expand its caustic soda plant capacity by 100 tonnes per day (TPD) at its existing facility in Alwar, Rajasthan. This expansion will complement the current production capacity of 300 TPD, potentially increasing the total output to 400 TPD.

New Sulphuric Acid Plant

In a move to diversify its product range, Lords Chloro Alkali will establish a new sulphuric acid plant with a capacity of 100 TPD. This new facility is expected to cater to the domestic market.

Solar Power Plant Expansion

To support its growing energy needs and reduce power costs, the company will expand its solar power plant in Bikaner, Rajasthan. The planned addition of 21 MW DC will increase the current capacity of 16.5 MW DC.

Investment and Financing

The company has outlined the following investment plans for these expansions:

Lords Chloro Alkali plans to finance these projects through a combination of internal accruals and bank financing.

Strategic Rationale

The expansion of the caustic soda plant is expected to enable greater economies of scale, improve fixed cost absorption, and enhance product availability to meet increasing market demand. The new sulphuric acid plant will allow the company to enter a new product category, potentially opening up additional revenue streams.

The solar power plant expansion is aimed at reducing power costs for the production facility at Alwar, which could lead to improved operational efficiency and cost savings in the long run.

Timeline

• The caustic soda plant expansion is expected to be completed by the end of the third quarter of FY 2026-27.
• The solar power plant expansion is slated for completion by the end of May 2026.
• The new sulphuric acid plant is planned for launch in FY 2027-28.

These expansion plans reflect Lords Chloro Alkali's commitment to growth and its strategic vision to strengthen its position in the chemical industry.

Lords Chloro Alkali Limited has announced the termination of its lease agreement with Varahalakshmi Infrastructure Private Limited (VIPL) for a 10.4-acre property in Village Salhawas, Rewari. The decision comes in the wake of several challenges that have impeded the company's plans to establish a manufacturing unit for Chlorinated Paraffin Wax (CPW) and other chemical activities.

Key Details of the Terminated Agreement

Reasons for Termination

Lords Chloro Alkali cited three primary reasons for terminating the lease agreement:

1. Failure to Obtain CLU Approval: VIPL was unable to secure the Change of Land Use (CLU) approval for industrial purposes. This was attributed to the lack of clarity in the Manesar Bawal Investment Region (MBIR) plan for 2031-2039, which is crucial for operationalizing the premises for manufacturing and warehousing of CPW.

2. Inability to Apply for Industrial Approvals: Without a valid CLU, Lords Chloro Alkali could not proceed with applications for mandatory industrial approvals and licenses required for manufacturing and allied operations.

3. Water Quality Issues: Testing conducted by Lords Chloro revealed that the available water supply is brackish and unsuitable for the planned Chlorinated Paraffin Wax (CPW) operations.

Related Party Transaction

The lease agreement was classified as a related party transaction, as Mr. Alok Dhir, a director in VIPL, is a relative of Mr. Madhav Dhir, Whole-Time Director of Lords Chloro Alkali. However, the company affirmed that the transaction was conducted at arm's length.

Implications

The termination of this lease agreement represents a setback for Lords Chloro Alkali's expansion plans in the CPW sector. The company will likely need to seek alternative locations for its planned manufacturing unit, potentially causing delays in its strategic growth initiatives.

This development underscores the importance of thorough due diligence in site selection for industrial projects, particularly concerning regulatory approvals and essential resources like water quality. It also highlights the complexities involved in navigating regional development plans and their impact on industrial expansion efforts.