Vipul Organics is set to significantly scale up its pigments business with the commissioning of its new greenfield manufacturing facility at Sayakha in Gujarat, which the company’s leadership has described as a “game changer” in terms of scale, cost competitiveness and global positioning.
Speaking on the upcoming commissioning, Shah said India currently has very few organised and focused pigment manufacturers, with Sudarshan Chemical being one of the rare large-scale players. “Beyond that, there is no comparable second or third player in India. In contrast, China has at least 20 companies that are 10–15 times larger than most Indian pigment manufacturers,” he noted.
The Sayakha facility has been designed to bridge this gap. Vipul Organics’ existing pigment capacity stands at around 2,000 tonnes per annum. With the new plant, capacity is expected to rise sharply to nearly 10,000 tonnes per annum. According to Shah, the increase in scale will substantially lower production costs and enhance the company’s ability to compete with large Chinese players.
The company expects to begin production at the new facility in about 12 weeks. “Once operations commence, I expect a meaningful improvement in EBITDA,” Shah said. The current commissioning marks only the first phase of development. Vipul Organics has already secured additional land at Sayakha, which provides room for further expansion once the initial phase stabilises, expected by early 2026.
The new plant will also focus on high-performance pigments, catering to demanding end-use segments such as automotive coatings that require superior durability and consistent quality. In addition, the company is evaluating plans for backward integration by manufacturing pigment intermediates in-house. “This will give us greater control over quality, pricing and supply security,” Shah added.
Alongside pigments, Vipul Organics is also diversifying into membrane manufacturing, a relatively new area for the company but one with strong long-term potential in India. The decision was driven by the technical expertise of Dr Vatsal Shah—Shah’s younger son—who completed his PhD in membrane technology at Imperial College London.
“Until 2023, we had no exposure to membranes, but through Vatsal we realised there is a significant gap in India, where most membranes are imported from the US, Korea or China,” Shah said. While global players such as Hydranautics and Toray dominate the market, their products are often expensive. Vipul Organics sees an opportunity to manufacture high-quality, efficient membranes at more affordable prices for domestic customers.
With capacity expansion in pigments and diversification into advanced membrane technology, Vipul Organics is positioning itself for its next phase of growth, focused on scale, technology and import substitution.