Nexxus Petro Industries Establishes 30 TPD Used Tyre Pyrolysis Plant for Downstream Integration
Nexxus Petro Industries Limited has established a new Used Tyre Pyrolysis (UTP) Plant at its facility in Pali, Rajasthan. The commissioning of the plant marks a significant move toward vertical integration and diversification for the company, transitioning from trading activities into high-margin in-house production of specialized industrial heating fuels.The state-of-the-art UTP plant has an installed capacity of 30 Tons Per Day (TPD). Nexxus Petro Industries Limited announced that commercial production from the facility is scheduled to commence starting August 30, 2026.
This strategic expansion allows the company to manufacture Used Tyre Pyrolysis Oil (TPO) and carbon. TPO serves as a critical value-added industrial heating fuel, widely utilized in hot-mix plants for heating bitumen during road construction, offering a cost-effective substitute for Light Diesel Oil (LDO).
The establishment of this facility directly addresses the company's downstream integration strategy. Previously, Nexxus Petro Industries traded approximately 250 to 300 MT per month of oil and 180 to 200 MT per month of carbon. The new captive production allows the company to fulfill existing market demand while capturing manufacturing value additions and expanding margins.
Revenue Projections and Financial Outlook
The UTP plant segment is targeted to generate substantial revenue, expected to increase as the facility scales up. In Phase 1, the new facility is aimed to generate an annual revenue of ₹25-30 Crore. Upon reaching full deployment capacity (60 TPD), the generation is projected to scale to ₹50-60 Crore per annum.The segment carries a net profit margin target of 8-10%, which is expected to be accretive to consolidated earnings and meaningfully higher than the company's core bitumen business operations. The company projects total turnover of Rs.400 Cr for FY 2026-27, with a targeted Profit After Tax (PAT) of up to 4% for the current year.
The capital expenditure (capex) required for the project was financed entirely through internal accruals, and the investment includes an anticipated effective interest subsidy benefit equivalent to approximately 5% per annum for seven years.
Capacity Phasing and Future Expansion
The operational plan is structured in two phases at the Pali facility.| Phase | Operational Milestone | Capacity / Timing |
|---|---|---|
| Phase 1 | UTP Plant Operation Commences | 30 TPD (Commencing August 2026) |
| Infrastructure | On-site liquid storage capacity | 500 KL |
| Phase 2 | Modular Unit Installation Begins | Within a few months of Phase 1 completion, scaling output to 60 TPD |
The civil foundations and structural layout at the Pali site were designed with pre-built scalability in mind, supporting a total site capacity of 60 TPD. The phased approach ensures that the company can scale its output incrementally after successfully running the initial 30 TPD unit.
Stock Price Movement
Nexxus Petro Industries Ltd settled on Monday, with shares achieving a gain of 0.49% after closing at ₹82.00. The stock navigated its intraday range, trading between a low of ₹82.00 and an intraday high of ₹82.40.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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