Focusing on the global markets, Indcarb, the Palakkad-based manufacturer and exporter of coconut shell-based steam-activated carbon, is set to launch value-added products, given its surging overseas demand.
The global activated carbon market is valued at $4.4 billion and is projected to be $7 billion by 2028, with a CAGR of 9.5 per cent. Activated carbon is majorly used in gold extraction, purification of water and air, said Joshy Joseph, Director and Marketing Head of the company.
The company which entered into the third year of its operations, intends to launch value-added products like high CTC carbon, which is majorly used in gas, air purification industries and catalytic carbon, which is considered as an economical solution to treat H2S levels and has significant in demand in the US markets, he said.
Catalytic carbon is a class of activated carbon used to remove chloramines and hydrogen sulphide from drinking water. The other application of activated carbon is in cosmetics, air conditioner filters of cars etc.
Used for gold extraction
The products have significant demand in the US, UK, Germany, Japan, South Korea and African countries. While the US and Europe use activated carbon for water treatment, the product is used for gold extraction in African countries. At the same time, the domestic market demand is also on the rise, he said, adding that India is the biggest exporter of activated carbon with more than 1,50,000 tonnes valued over ₹2,000 crore.
Russia was a big market, but the ongoing Ukraine war has impacted supplies. However, the European market started recovering after the current slowdown and is expected to generate more business in the second quarter, Joshy Joseph said.
Coconut shell charcoal is the main raw material for activated carbon production and is sourced from Kerala and Karnataka. However, due to the global slowdown the raw material prices are low which helps the company to be more competitive in the global market, he said.
Indcarb started commercial production in March 2021 with a modern and automated plant at Kanjikode industrial area in Palakkad. The proposed expansion plan will be completed by 2024, making the company the single largest producer of activated carbon from Kerala. It has also plans to list in the SME exchange in three years, he added.