Pondy Oxides starts 36,000 MTPA smelter in 2025

Commercial production begins at Thervoykandigai

Pondy Oxides and Chemicals Ltd (POCL) has commenced commercial production at the first phase of its new smelter facility in Thervoykandigai, near Chennai. Operations at the facility began on April 16, 2025, according to the company’s update. The commissioning marks a key milestone in POCL’s ongoing capacity build-up in non-ferrous metals recycling. The first phase adds 36,000 metric tonnes per annum (MTPA) of installed capacity. POCL has described the unit as a fully automated and integrated recycling hub. The company also said the plant is engineered to handle diverse forms of metal waste with high efficiency. The development is positioned as part of a broader plan to increase scale across lead and other recycling streams.

How the new smelter fits into the broader expansion plan

The Thervoykandigai smelter is planned as a two-phase project with a total licensed capacity of 72,000 MTPA. Phase 1 represents half of that target, with Phase 2 expected to add another 36,000 MTPA. In earlier expansion details, the company indicated a ₹70 crore investment for Phase 1 of lead expansion and a trial run by March 2025. Commercial operations subsequently started on April 16, 2025. The second phase is expected to be commissioned by the first half of FY26, as per the company’s stated timeline. A separate timeline reference also points to the second 36,000 MTPA addition following by H2FY26. Taken together, the project expands licensed capacity while allowing commissioning in steps rather than all at once. The phased approach also ties back to working capital planning and procurement alignment for recycled metal inputs.

Facility design and operating focus

POCL has characterised the Thervoykandigai unit as “the first of its kind in India,” emphasising advanced smelting technologies and a high degree of automation. The company said the facility is designed to operate as a fully automated and integrated recycling centre. It is engineered to handle various forms of metal waste efficiently, supporting both volume and precision. POCL also highlighted sustainability-linked features, stating that the plant aims to manage metal waste with minimal environmental impact. These statements align with the company’s positioning in the circular economy and metal recovery segments. While POCL did not provide detailed technology specifications in the update, it clearly linked the new unit to higher processing capability and greater throughput. The company’s broader narrative is that automation and integration improve operational consistency at higher scale.

Capex and funding: ₹70 crore spent and ₹175 crore raised

POCL said it invested approximately ₹70 crore in capital expenditure during the first nine months of the current fiscal year. Alongside capex, the company raised ₹175 crore via a Qualified Institutional Placement (QIP). POCL said the QIP proceeds were intended to support working capital needs and to fund further capacity expansion. This combination of capex and equity-linked fundraising suggests a dual focus on commissioning readiness and day-to-day operating liquidity. For recycling businesses, working capital can be significant due to inventory cycles for scrap procurement and finished metal dispatches. The funding update was provided in the context of the commissioning announcement, linking capacity build-up with balance-sheet actions. The company did not disclose additional terms of the QIP in the provided information.

Existing footprint and product mix

POCL’s journey began with a modest plant for litharge and red lead in 1996. It now operates four full-fledged facilities across Tamil Nadu and Andhra Pradesh, with a fifth facility in progress. The company’s stated capacities include lead capacity of 1,32,000 MTPA, expanding to 2,04,000 MTPA by FY26. It also listed copper capacity of 6,000 MTPA, aluminium capacity of 12,000 MTPA, and plastic capacity of 9,000 MTPA. Apart from these, the company’s product portfolio includes lead, lead alloys, aluminium, copper, plastics, and trading. POCL also manufactures zinc metal and zinc oxide. In its operational commentary, the company indicated it is actively reviving its copper and plastics business, which it said is now growing rapidly after past losses.

The Mundra plant and export-linked positioning

Beyond Tamil Nadu, POCL has pointed to its new mega plant in Mundra, Gujarat, as a strategic location for exports and sourcing from West India. The Mundra site includes a 123-acre land bank and is located close to the port, according to the company’s description. The proximity to port infrastructure can support outbound logistics for exports and may also help inbound procurement movement. POCL’s framing of Mundra is primarily about geographic advantage rather than a specific capacity figure. The expansion narrative indicates that the company is building a multi-location footprint to support scale. This also reduces dependence on a single cluster for raw material access and dispatch routes. The provided information does not specify commissioning dates or phase details for Mundra.

Market and investor signals seen so far

POCL’s expansion announcements have coincided with investor attention in the past. The company’s share price touched a 52-week high of ₹794.50 in early trade on January 10, 2024, after it signed an MoU with the Tamil Nadu government for setting up recycling and manufacturing plants. The MoU was signed and exchanged on January 8, 2024 at the Tamil Nadu Global Investors Meet 2024 in Chennai. Under the MoU, POCL proposed to invest ₹300 crore to ₹500 crore over five years in the state. The company also proposed employment of 1,200 people, including direct and indirect roles. The Government of Tamil Nadu agreed to provide facilitation and support, including regulatory facilitation and infrastructure support on a best-effort basis, subject to applicable laws.

Key facts at a glance

Why this matters for the recycling and metals ecosystem

The commissioning of Phase 1 at Thervoykandigai is a capacity event with clear near-term operational implications because it adds 36,000 MTPA of new annual capability. It also reinforces POCL’s strategy of scaling through multiple hubs rather than a single-site expansion. The company is simultaneously linking its growth narrative to a broader basket of products, including lead, plastics, copper, aluminium, zinc metal, and zinc oxide. Its management commentary attributed growth in revenue, EBITDA, and PAT to increased production and sales of lead, plastics, and copper, without providing specific figures in the provided information. On the policy and investment side, the Tamil Nadu MoU frames a wider investment pipeline across recycling and manufacturing categories, including lithium-ion batteries, paper, plastics, and rubber. The combination of commissioning updates, capex, and QIP fundraising provides a trackable set of milestones for investors monitoring execution over FY26.

Conclusion

POCL’s start of commercial production at the first phase of the Thervoykandigai smelter on April 16, 2025 expands its recycling capacity by 36,000 MTPA as part of a 72,000 MTPA plan. The next major milestone is the commissioning of the second 36,000 MTPA phase, which the company has linked to FY26 timelines. Separately, its Mundra site and the Tamil Nadu MoU-based investment plan underline the company’s broader multi-year expansion agenda.