Update by TCL Specialties LLC, USA

In February 2025, we had informed our shareholders and public about the progress of our US project, with the press release from our US subsidiary, TCL Specialties LLC (TCL USA). This is an update.

TCL (Specialties) LLC is building two major plants, integrated at one site. The only feedstock is n-Butane from local shale gas, which is plentifully available in our location, as we are located within the shale plateau.

The products will be:

a. A petrochemical Maleic Anhydride (MAn); this serves Thermoset / Composites polymer industry (high strength high impact plastics) for automotive, aircraft, energy and wind mills, EVs, infrastructure, coatings and industrial products.

b. The special Food Ingredients (Malic Acid and Fumaric Acid) for the US market and a small part for exports to Latam and the EU. The US has one producer which serves about 25-30% of the domestic market; the rest is imported.

Generally the US market for chemicals has become well balanced. As a result of the supply chain disruptions during and after the pandemic, there has been a steady move to 'on-shore' supply chains. The recent changes in US policy aimed at reducing the trade deficit and increase domestic production has speeded up this trend - very favourable for our investment.

In the case of Maleic Anhydride (MAn), the growth of downstream consuming industries has been robust. In addition, there has been consolidation during the last five years along with reliability problems at the older units of existing manufacturer's. We will only serve the large local regional market in the NE-US and Mid-West, which are significantly under-served.

In the Food Ingredients (Malic Acid and Fumaric Acid), the market for snacks and beverages has been growing fast. The fact that the US is a major importer, with limited domestic production, makes it a very attractive environment for TCL's investment.

100% of the Plant and Equipment have reached the site; and a large majority of these have been installed. As we mentioned earlier, most of the plant is built modularly in India with equipment from global suppliers. The targeted date for completion and start-up remains OctDec 2025; ramp-up of production and sale will be during CY 2026.

During the last two years and especially during the last 6 months, TCL's marketing staff have been in touch with over 80% of US customers for our products. TCL group has a long history in Europe and US though with smaller capacities from India and Malaysia earlier. Most customers know TCL well and we have good relationships with major customers worldwide. Our marketing team has now started working towards product sale and placement after startup.

The US management and operation Teams are being brought on-board; we are supported by US experts and consultants from these industries & markets.

Shares of Thirumalai Chemicals Limited was last trading in BSE at Rs. 290.75 as compared to the previous close of Rs. 284.90. The total number of shares traded during the day was 27341 in over 1051 trades.

The stock hit an intraday high of Rs. 294.00 and intraday low of 283.05. The net turnover during the day was Rs. 7953213.00.

Source : Equity Bulls

Keywords

ThirumalaiChemicals INE338A01024 CommodityChemicals USSubsidiary ProjectUpdate