How India Overtook China As EU's Biggest Carbon Black Supplier

India, which was a net importer of carbon black till FY21, has successfully flipped the script to become a net exporter, five times faster than China's 4%. 

Previously, the South Asian nation couldn't keep pace with surging tyre and rubber demand, however, now its exports are growing at 20% CAGR.

What Makes India’s Carbon Black So Special?

India uses crude oil-based feedstock (cheaper & stable), while China relies on coal tar-based oil, hit by environmental curbs and supply issues, making India's produce more cost competitive.

For the same reason, India's exports to the EU jumped from 10,000 tonnes (2021) to 150,000 tonnes (2024) overtaking China as the bloc's largest supplier.

Meanwhile, domestic capacity is at 2.1 MT (FY25) with 0.5-0.6 MT being added by FY27.

Th brokerage house noted that this expansion isn’t just about making more carbon black, but about making the right kind. Carbon black comes in 3 grades: standard, performance, and specialty.

That's why, despite lower volumes, every major player is shifting toward specialty production.

In India, three major players dominate this scene- PBCL, Himadri, and Birla Carbon. 

PCBL is India’s largest and the world’s 7th largest carbon black producer, with a total capacity of 790,000 tonnes. (678,000 tonnes for rubber black and 112,000 tonnes for specialty black)

A new 20,000 tonne specialty line at Mundra will be completed by March 2026, adding 18% to specialty capacity.

This takes their specialty capacity to about 132,000 TPA or about 16% of total output. At the same time, PCBL is aiming to hit a capacity of 1 million TPA by FY28.

Financially, the company reported revenue of ₹8,404 crores in FY25, up 31% YOY, led by capacity expansions and strong export growth. EBITDA grew 29% to ₹1,384 crores, with PAT reaching ₹435 crores.

On the other hand, Himadri Speciality Chemical takes a different approach. The company processes coal tar (byproduct from steel coke ovens) to produce specialty oils, which it then converts into specialty carbon, focusing almost entirely on high-margin grades rather than commodity tyre black.

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Himadri's Q3 FY26 revenues reflect this transformation, reaching ₹1,133 crore with PAT of ₹195 crore, up 37% year-on-year.

For the nine months ending December 2025, PAT was ₹564 crore, already exceeding their full FY25 profit with three months still remaining.

Birla Carbon, though unlisted, remains a formidable player with global scale. Operating 19 manufacturing facilities across 14 countries with around 2 million tonnes annual capacity globally, it's among the world's largest producers. Put together, the transformation is visible in the numbers.

Himadri's PAT up 37% YoY. PCBL's specialty volumes were up 17% while overall volumes fell 2%. India's carbon black exports are growing at 20% CAGR. The shift from tyre to specialty chemicals is happening now

With over 5,00,000 tonnes of new specialty capacity coming online by FY27 and global specialty demand growing at 10% annually, Indian producers are positioned to capture this high-margin opportunity.