India’s leading producer of coal tar pitch (CTP) and carbon materials, Epsilon Carbon, has signed a USD 20 million (~INR 178 crore) MoU with Aluminium Bahrain (Alba), one of the world’s largest aluminium smelters. The agreement, announced during the 3rd Gateway Gulf Investment Forum in Manama, marks a significant step toward building a long-term supply partnership for liquid CTP across the Middle East.
Vikram Handa, Managing Director of Epsilon Carbon, described the move as a strategic leap in the company’s journey toward sustainable industrial growth and regional integration. “With our coal tar distillation capacity set to reach 7,50,000 tonnes by 2027 and this USD 20 million investment in Bahrain, we aim to strengthen regional collaboration and supply chain resilience,” Handa said.
Boosting Capacity to Serve the Gulf’s Aluminium Smelters
Epsilon Carbon currently produces 1,80,000 tonnes of CTP annually but plans to expand capacity to 3,00,000 tonnes by next year. The increased output will cater primarily to aluminium producers in Bahrain, Qatar, and Saudi Arabia, which collectively consume about 2,50,000 tonnes of pitch every year—most of it imported from China, Japan, and India.
The company’s upcoming Bahrain facility will serve as a melter unit, enabling it to transport CTP from India and supply local customers more efficiently. “Our presence in Bahrain will help us reduce freight costs, localize supply chains, and enhance our partnerships across the GCC,” Handa noted.
CTP is a vital component in the production of carbon anodes and cathodes for aluminium smelting, and it is also increasingly in demand for electric vehicle (EV) battery manufacturing—an area where Epsilon is rapidly diversifying.
Expanding Global Operations
Founded in 2010 and headquartered in Mumbai, Epsilon Carbon operates manufacturing units in Karnataka, Chhattisgarh, and Odisha. The company has also been expanding internationally, with battery material operations in the United States, Finland, and Germany, reflecting its ambition to become a global leader in carbon materials for green technologies.
Domestically, the company has announced major investments of INR 10,000 crore in Odisha and INR 500 crore in Karnataka to enhance its carbon black, coal tar distillation, and battery material capacities. By 2027, the company’s coal tar distillation capacity is projected to reach 7,50,000 tonnes, underlining its aggressive growth trajectory.
Epsilon Carbon IPO on the Horizon
Epsilon Carbon’s meteoric growth and overseas expansion have set the stage for its next milestone: Epsilon Carbon IPO by the end of 2027. “Looking at the scale of our expansion, we are hoping to go public by 2027-end,” Handa told reporters, adding that the IPO would help fuel the company’s ambitions in both carbon materials and sustainability-driven innovation.
Industry analysts view this as a logical next step for Epsilon, which has grown into a vertically integrated carbon company with significant backward linkages across the steel, chemical, and energy sectors.
Sustainability and Innovation at the Heart
Epsilon Carbon has always been a tech-driven, eco-friendly manufacturer. In July 2025, the company launched a fleet of LNG-powered container trucks to transport carbon black, reducing CO₂ by 25% and NOx by 90% compared to diesel transport. This aligns with India’s decarbonization goals and helps reduce Scope 3 emissions for Epsilon and its customers in the tyre industry.
Handa, in his July op-ed, had mentioned backward integration as the foundation for industrial decarbonization. He said that integrating upstream processes helps industries cut emissions, improve resource efficiency and build a circular economy – something Epsilon Carbon has clearly done.
Verdict
Epsilon Carbon’s partnership with Alba shows India’s growing presence in the industrial materials and energy transition space. The deal not only strengthens the company’s presence in the Gulf but also signals a broader shift towards localised, sustainable supply chains in heavy industry.
With strong export potential, vertical integration, environmental initiatives and Epsion Carbon IPO in 2027, the company is positioning itself as a global player in low-carbon materials.
If done well, the Epsilon Carbon IPO could attract substantial institutional interest, especially from investors focused on clean industrial growth and energy transition technologies.
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