Sanjiv Goenka in Calcutta on Tuesday. Picture by Kishor Roy Chowdhury

Calcutta, May 3: Phillips Carbon Black Ltd (PCBL), an RP Goenka group firm, plans to set up its biggest facility in Tamil Nadu.

The company, only second to the AV Birla group in India and the eighth largest in the world, will spend Rs 500 crore to set up the plant.

PCBL chairman Sanjiv Goenka said the State Industries Promotion Corporation of Tamil Nadu had allotted 60 acres in the SIPCOT Industrial park in Thervoy Kandigai near the Ennore port.

“We have applied for environmental clearances,” he said. The facility will have a capacity of over 140,000 tonnes and a minimum co-generation power plant of 20 mega watt (MW).

Goenka refused to divulge further details. He said PCBL was preparing a blue print for a big leap forward. The plan, which involves plants in both India and abroad, will be unveiled in July.

“Being eighth is not good enough. We have to move up to the fifth and break into the third (globally in terms of capacity),” he said, adding that PCBL was set to hit a “very high” growth trajectory.

The company has 360,000 tonnes installed capacity of carbon black — used in the tyre industry — in India and a 60MW power plant. It will go up to 410,000 tonnes within two months. Power capacity will increase to 84MW by December 2012.

Goenka did not rule out acquisitions but said no efficient or good plant was up for sale. PCBL had participated in the bidding for European carbon black giant Evonik but had opted out of the race.

Meanwhile, the company’s profit has fallen 8 per cent to Rs 33.29 crore during the quarter ended March because of higher deferred tax burden. Profit for the fiscal stood at Rs 116.28 crore against Rs 122.69 crore in 2009-10.