Image Source: Industrial Projects In India
Laxmi Organic Industries Ltd has announced a strategic capital expenditure commitment of approximately ₹750 million, aimed at expanding its specialty chemicals portfolio and advancing sustainable technologies. A key highlight of this investment is a newly signed agreement with Hitachi Energy to co-develop and manufacture an eco-efficient gas used in SF₆-free high-voltage switchgear systems. This collaboration marks a significant step toward green innovation in India’s chemical and energy sectors.
Key Highlights
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Capex Commitment: ₹750 million earmarked for specialty chemical expansion and sustainability-linked projects
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Strategic Partnership: Agreement signed with Hitachi Energy to produce eco-efficient gas for SF₆-free switchgear
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Technology Focus: Production to leverage Laxmi’s fluorination capabilities, aligning with global decarbonization goals
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Commercial Timeline: Production expected to begin in FY27, with infrastructure development already underway
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Regulatory Milestones: Environmental clearance and factory license secured for Dahej site, where the gas will be manufactured
The eco-efficient gas, developed by Hitachi Energy, is a next-generation alternative to sulfur hexafluoride (SF₆), a potent greenhouse gas widely used in electrical insulation. By partnering with Hitachi, Laxmi Organic will become a key supplier in the global transition to low-emission power transmission technologies.
The project will be housed at Laxmi’s upcoming Dahej facility, which has already received regulatory approvals and is on track in terms of scope and cost. The company’s fluorination platform will be central to the production process, reinforcing its position as a high-value specialty chemical manufacturer.
This initiative follows the inauguration of Laxmi’s Innovation Center in Navi Mumbai and the commercial launch of its fluoro-intermediates site, both of which support the company’s pivot toward advanced materials and ESG-aligned growth. Despite a challenging Q4 FY25—where net profit fell 51% year-on-year—Laxmi has maintained strong operational momentum, with full-year revenue reaching ₹2,985 crore and volume growth of 11%.
Industry analysts view the Hitachi partnership as a strategic leap into the energy transition value chain, offering long-term revenue visibility and global relevance. The eco-efficient gas market is expected to grow rapidly as utilities and governments phase out SF₆-based systems under climate mandates.
Laxmi Organic’s management has reiterated its commitment to innovation, customer-centricity, and sustainability. The ₹750 million capex will be deployed across R&D, plant infrastructure, and process optimization, with a focus on scaling specialty offerings and reducing environmental footprint.
Sources: Laxmi Organic, Business Standard, Trendlyne
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