PCBL Chemical Limited, a leading player in the chemical industry, has taken a significant step towards strengthening its global market presence by incorporating a wholly owned subsidiary in the United States. This strategic move aims to enhance the company's access to North American markets and bolster its position as a global industry leader.

Key Details of the Subsidiary

• Name: PCBL Chemical USA Inc.
• Location: Incorporated under the laws of the State of Delaware, USA
• Ownership: 100% owned by PCBL Chemical Limited
• Initial Investment: 1,000 equity shares with a face value of USD 1.00 each, totaling USD 1,000.00

Strategic Implications

The establishment of PCBL Chemical USA Inc. is expected to yield several strategic benefits for the parent company:

1. Enhanced Market Access: The subsidiary will facilitate easier access to North American markets, allowing PCBL Chemical to better serve its customers in the region.

2. Proximity to Customers: A local presence in the USA will enable the company to be closer to its North American customer base, potentially improving service and response times.

3. Regulatory Understanding: The subsidiary will help PCBL Chemical navigate the regulatory landscape in the United States more effectively.

4. Supply Chain Localization: This move is expected to support the localization of supply chains for carbon black and specialty chemicals, which the company describes as having "critical strategic significance."

5. Market Intelligence: Operating directly in the US market will allow PCBL Chemical to gain deeper insights into local market trends and customer needs.

Company Statement

In its official communication to the stock exchanges, PCBL Chemical Limited stated, "The subsidiary in USA will facilitate easier access to the North American markets. A local subsidiary in USA would further help to gain strategic market access, proximity to customers and understand regulatory and incentive landscape."

The company further emphasized that this expansion would "strengthen PCBL Chemical Limited's position as a global player in the industry."

Conclusion

The incorporation of PCBL Chemical USA Inc. marks a significant milestone in PCBL Chemical Limited's global expansion strategy. By establishing a direct presence in one of the world's largest chemical markets, the company is positioning itself for potential growth opportunities and enhanced competitiveness on the international stage. Stakeholders will likely be watching closely to see how this strategic move translates into business performance and market share in the coming years.

PCBL Chemical Limited , a leading specialty chemical player, has reported no deviation in the utilization of funds raised through its Rs 448 crore convertible warrants issue. The company's Audit Committee reviewed and approved this statement for the quarter ended June 30, 2025.

Warrant Issue Details

On May 7, 2024, PCBL Chemical raised an initial subscription amount of Rs 112.00 crore, representing 25% of the total warrant issue price. The company issued 1.6 crore convertible warrants on a preferential basis, with each warrant convertible into one fully paid-up equity share of face value Re. 1.

The remaining Rs 336.00 crore is expected to be received when warrant holders exercise their conversion rights, which can be done by November 8, 2025.

Fund Allocation

The funds raised were allocated for three primary purposes:

1. Debt Repayment: Rs 168.00 crore
2. Working Capital Funding: Rs 168.00 crore
3. General Corporate Purposes: Rs 112.00 crore

Current Status

As of June 30, 2025, no warrants have been exercised, and consequently, no additional proceeds were received during the quarter. The total issue proceeds received by the company remain at Rs 112.00 crore, which were fully utilized by the September 2024 quarter.

Monitoring and Compliance

CRISIL Ratings Limited serves as the monitoring agency for the fund utilization. The company has confirmed its adherence to the original fund utilization plan, with no deviations reported.

Financial Performance

In its Q1 FY26 results, PCBL Chemical reported:

The company's carbon black sales volume increased by 2.6% quarter-on-quarter to 154,093 MT in Q1 FY26, with specialty black sales volume rising by 4.5% to 16,065 MT.

Future Outlook

PCBL Chemical is actively expanding its operations:

• A brownfield expansion of 30,000 MTPA at PCBL (TN) is in trial runs and will be commissioned soon.
• The second phase of 60,000 MTPA expansion, along with a 12MW Green Power facility, is expected to be ready by FY26 end.
• These expansions will increase the total Carbon Black capacity to 900,000 MTPA and Green Power capacity to 134 MW in FY26.
• The company is also planning a new Specialty Black line with a 20,000 MTPA capacity.

With these developments and the steady growth in the tyre sector, PCBL Chemical is well-positioned to capitalize on both domestic and export opportunities in the specialty chemicals market.

Note: All financial figures are in Indian Rupees (INR).