VV Titanium Pigments, involved in the production of Anatase-grade titanium dioxide, is planning to invest Rs 100 crore for upgrading its operations into a coated rutile plant.
The company said it was one of the largest investments made by any private entity for meeting the domestic demand for titanium dioxide.
The coated rutile plant, being built with German technology, is expected to be operational by 2016. The facility is expected to provide direct employment to more than 200 people and also indirectly benefit more than 5,000 individuals.
It is the second big project for the VV group, after it acquired Kilburn Chemicals (now VV Titanium Pigments) located at Tuticorin, which produces titanium dioxide from Ilmenite.
The company estimates the project would result in a foreign exchange saving of Rs 2500 million per annum. In addition to this, it will benefit the indigenous paints and plastic industry that is mostly relying on exports from China, Japan and the West.
V Subramanian, managing director of VV Group of Companies, said the project would lead to commercial production of rutile titanium dioxide besides bridging the demand-supply gap in the country.
With the expansion project, the group is planning to capture a major chunk of the titanium dioxide demand in India.
The demand for titanium dioxide in India is about 3,00,000 mtpa, whereas domestic production is at 60,000 mtpa.
Most of the rutile sand and ilmenite is processed into non-toxic white titanium dioxide pigments for use in the manufacture of paints, plastics, paper, textiles, cosmetics and ceramics. Ilmenite and rutile sand are also used to produce titanium metal for use in aircraft, spacecraft, motor vehicles, desalination plants and surgical implants.