VCI Chemical Industries Pvt Ltd, founded in May 2021, is emerging as a key player within India's specialty chemical sector, carving a niche in coal tar distillation and coal tar-based chemical derivatives — a segment vital for industries like aluminum production, graphite electrodes, construction materials, and specialty industrials.
Despite being private, VCI Chemical Industries' unlisted shares have already started attracting significant investor interest. The company’s strategic positioning, alignment with major industrial megatrends, and strong foundational work ahead of commercial production are boosting its appeal in private investment circles.
Current Valuation and Shareholding Structure
Unlisted Share Price: VCI Chemical Industries' unlisted shares are currently trading at approximately ₹53 per share, reflecting recent updates to financial assessments, liquidity shifts, and transaction volumes in the market. [View Current Market Price of VCI Chemical Industries Unlisted Shares]
On UnlistedSharesIndia.com, the minimum lot size for purchasing shares is 10,000.
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VCI Chemicals Tailwinds
➢ Global Industry Growth:
The global specialty chemicals market is expected to surpass $500 billion by 2025, fueled by increasing demand for advanced materials, construction, energy storage, and industrial manufacturing.
➢ India’s Rising Dominance:
The China+1 Strategy is pushing global manufacturers to diversify supply chains, positioning India as a rising hub for specialty chemicals production, backed by policy incentives, lower operational costs, and skilled manpower.
➢ VCI’s Specific Opportunity:
➢ Energy Transition: Demand for lightweight metals (like aluminum) in EVs, solar panels, and aerospace is skyrocketing.
➢ Industrial Capex Cycle: Massive new infrastructure projects (railways, highways, airports) drive steel and aluminum usage — boosting demand for CTP and related products.
➢ "Make In India" and PLI Schemes: Government policies are actively encouraging localized specialty chemicals manufacturing, offering incentives, and lowering regulatory barriers.
➢ Coal Tar Availability: With the rise in India's steel production (especially coke ovens), domestic coal tar supply is improving, giving VCI a reliable raw material base.
➢ Supply Chain Security: Post-COVID, global players seek stable supply partners closer to end-use locations; VCI Chemical Industries can serve both Indian and Gulf markets efficiently.
These layered tailwinds enhance pricing power, expand addressable markets, reduce import dependency, and create a long-term multi-year runway for VCI Chemical Industries' unlisted shares to appreciate.
Promoter Strength and Governance
➢ Vikrant Group’s Industrial Legacy: A proven record in handling large-scale industrial operations strengthens VCI’s execution capabilities and lender confidence.
➢ Leadership: Mr. Shubham Gupta’s focused experience in specialty chemicals ensures technical, regulatory, and operational soundness — not just financial engineering or speculative scaling.
Promoter credibility reduces execution and funding risks, directly impacting the future valuation and liquidity prospects of VCI Chemical Industries' unlisted shares.
Revenue Visibility
Long-Term Supply Contracts: Off-take agreements with major Middle Eastern aluminum producers lock in future revenue even before plant commissioning, an unusual and highly positive feature for an early-stage manufacturing business.
VCI Chemical Industries Pvt Ltd is progressing with its Coal Tar Distillation Plant, which boasts an impressive capacity of 1,00,000 TPA (Tons Per Annum). As part of its strategic growth, the company has entered into a Memorandum of Understanding (MoU) with Tata Steel Limited (TSL) for the supply of coal tar, with the agreement in place until March 2025. However, to formalize the arrangement, the company must ensure the execution of a legally binding contract before TSL commences supply. This step is crucial in mitigating the risks associated with raw material procurement, providing a stable foundation for the plant's operations and future growth.
Risk Factors of VCI Chemicals
➢ Liquidity Risk:
Even though secondary trading platforms like Altius facilitate transactions, VCI Chemical Industries' unlisted shares will remain less liquid than publicly listed stocks until a potential IPO.
➢ Execution Risk:
Any delays in plant commissioning (beyond late 2025) could inflate project costs, strain cash reserves, and defer revenues — temporarily dampening share valuations.
➢ Input Cost Volatility:
Fluctuations in coal, coke, and crude oil markets could impact raw material pricing unless hedged or built into customer contracts.
➢ Regulatory/ESG Compliance Risk:
Coal tar processing faces growing environmental scrutiny; failure to meet tightening standards could invite penalties or capital expenditure burdens.
VCI Chemical Industries' unlisted shares
present a strategic opportunity for investors seeking exposure to India's specialty chemicals boom, backed by strong tailwinds, industrial demand, and credible execution partners. Tailwinds from energy transition, infrastructure expansion, import substitution, and policy support set the stage for long-term growth. While liquidity and execution risks exist, the presence of long-term contracts, experienced promoters, and alignment with macro trends offer significant value creation potential for patient investors.
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