Specialty Chemical Stock in Focus; Company Enters 50:50 JV for 6,000 TPA Chromium Plant

On Tuesday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index falling 99.00 points (0.42 per cent) to 23,680.15. Amid the market movement, Vishnu Chemicals share price rose 0.16 per cent to Rs 727.65 after the company announced the execution of a definitive Joint Venture Agreement with France-based DCX Chrome SAS to establish a greenfield manufacturing facility for high-purity chromium metal in Visakhapatnam, Andhra Pradesh.

The proposed facility will have an installed capacity of 6,000 metric tonnes per annum (MTPA) and will be developed through a new joint venture company owned equally by Vishnu Chemicals and DCX Chrome.

Greenfield Chromium Metal Plant to Come Up in Visakhapatnam

Under the agreement, Vishnu Chemicals and DCX Chrome will establish a new manufacturing facility dedicated to high-purity chromium metal. The proposed joint venture will have equal ownership, with both companies holding 50 per cent of the equity. The partners will also have equal representation on the board of the proposed joint venture company.

The project is aimed at developing domestic manufacturing capabilities for high-purity chromium metal, a material that is currently largely imported for applications requiring advanced engineering materials.
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French Partner to Provide Process Technology

The partnership combines Vishnu Chemicals' expertise in chromium chemicals with DCX Chrome's specialised technology for manufacturing high-purity aluminothermic chromium metal and chromium powders.

Under the arrangement, DCX Chrome will provide its proprietary process technology and know-how to enable domestic production of high-purity chromium metal meeting stringent global aerospace standards. Vishnu Chemicals will provide chrome oxide green as the key raw material for the proposed facility, supporting an assured and reliable supply for the joint venture.

Targeting Aerospace, Defence and Energy Applications

The proposed chromium metal facility will cater to applications across aerospace, defence and energy, along with other specialised industrial sectors.

High-purity chromium metal is used in high-temperature components such as combustion chambers, turbine discs, blades, vanes and casings in aircraft engines. The company stated that a single commercial aircraft engine, such as that used in the Airbus A320, contains approximately 250 kg of pure chromium metal.

The material is also used in oil and gas drilling equipment, pipelines and seawater heat exchangers, while other applications include steam superheater tubes in nuclear power plants, land-based gas turbines and thin-film materials used in LCDs.

Focus on Import Substitution and Domestic Manufacturing

The joint venture is also intended to reduce India's dependence on imported high-purity chromium metal. The company said establishing domestic production capacity would strengthen supply-chain security for strategic aerospace and defence programmes while supporting India's broader manufacturing and self-reliance objectives.

The project is also expected to create high-skilled engineering and operational employment in and around Visakhapatnam and contribute to industrial development in Andhra Pradesh.

About the Company

Vishnu Chemicals is a specialty chemical manufacturer headquartered in Hyderabad and operates in chromium, barium and strontium chemicals. The company has more than three decades of operating experience and seven manufacturing plants across its operations. The company serves customers across industries including steel, glass, pharmaceuticals, pigments and leather, with a presence across Asia, Europe, the Americas and Africa.

Disclaimer: The article is for informational purposes only and not investment advice.