Pondy Oxides set to commission Phase 1 of lead smelter unit near Chennai

Pondy Oxides and Chemicals Ltd., a company involved in the recycling business, is on track to complete the first phase of capacity expansion at its new facility near Chennai by March this year.

The new Lead Smelter Plant, located in Thervoykandigai near Chennai, would be the first of its kind in India. The fully automated facility will have a total capacity of 72,000 tonnes per annum (MTPA). The first phase of expansion, which will increase lead production by 36,000 MTPA, is currently underway. The plant’s erection and commissioning are in the final stages, and trial production is expected to begin in the first week of March 2025, according to the company.

Once Phase 1 is complete, the total lead production capacity will increase from 132,000 tonnes per annum to 204,000 tonnes per annum. The company has invested ₹70 crore in capital expenditure in the first nine months of the current fiscal year. Additionally, it has raised ₹175 crore through a Qualified Institutional Placement (QIP), which will be utilised for working capital requirements and further capacity expansion.

For the nine months ending December 31, 2024, Pondy Oxides reported a net revenue of ₹1,511.6 crore, registering a 29 per cent increase from ₹1,168.1 crore in the same period last year. Its profit after tax (PAT) stood at ₹47.1 crore, up from ₹27.2 crore in the previous year.

“Revenue, EBITDA, and PAT all showed significant growth on a year-over-year basis. This growth was primarily driven by a substantial rise in the production and sales of lead, plastics, and copper,” Ashish Bansal, Managing Director, said.