Pondy Oxides and Chemicals to setup ₹200 Crore Copper Recycling Plant in Tamil Nadu

Leading non-ferrous metals recycling company, Pondy Oxides and Chemicals Limited (POCL), has announced a major strategic expansion into the copper recycling space. In a regulatory filing submitted to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on May 26, 2026, the company confirmed that its Board of Directors has approved the establishment of a state-of-the-art copper recycling facility in Thervoykandigai, Thiruvallur District, Tamil Nadu.

The ₹200-crore project represents a cornerstone move in the company's ongoing mission to diversify its recycling portfolio, advance vertical integration, and support global circular economy principles.

Project Scope, Investment, and Timeline

The new production hub will utilize an integrated pyro-refining and electro-refining technology framework, a specialized metallurgical combination that unites high-temperature furnaces with high-precision electrolytic refining. This setup ensures maximum material recovery and guarantees the output of premium, highest-grade metal purity.

The project features several key operational parameters:

Production Capacity: The facility will boast a total installed capacity of 36,000 Metric Tonnes Per Annum (MTPA) of London Metal Exchange (LME) Grade A Copper Cathodes.

Phased Rollout: To optimize scaling, the project will be executed across two distinct phases of 18,000 MTPA each.

Financial Investment: The total estimated capital expenditure for the setup is approximately ₹200 crores, which the company intends to fund entirely through internal accruals without relying on heavy external debt.

Targeted Completion: POCL has set an aggressive execution timeline, aiming to fully commission the plant on or before December 2026.

Entering the copper recycling vertical serves multiple critical strategic initiatives for POCL. Primarily, the plant allows the company to forward-integrate and expand its existing non-ferrous portfolio beyond its traditional legacy metals. By creating a domestic pipeline for LME Grade A Copper Cathodes, the facility will directly cater to the surging demand within the domestic Indian market while building a competitive channel for global exports.

On a broader macroeconomic scale, the facility will actively help reduce India's heavy import dependency on foreign countries for refined copper.

Once operational, the project is expected to deliver structural value across POCL's corporate framework. From a financial perspective, the commercialization of premium, value-added copper products is projected to significantly bolster the company's revenue streams and expand its net margins. Operationally, the plant will establish immediate corporate synergies by leveraging POCL's long-standing procurement networks, logistics chains, and existing sales infrastructure.

Furthermore, the green transformation project emphasizes sustainable, responsible manufacturing. By utilizing recycling methods over primary mining extraction, the facility will notably lower the company's aggregate carbon footprint through optimized energy utilization and minimized environmental impact. Locally, the project is also poised to foster regional socio-economic development through the direct and indirect creation of new jobs in the Thiruvallur district.

Source : Equity Bulls

Keywords

PondyOxidesandChemicals Expansion Capex CopperRecyclingPlant TamilNadu