MPL to in­vest Rs 100 crore to ex­pands ca­pac­ity

Power Watch India - - DESPATCHES FINANCE -

In a bid to con­sol­i­date its po­si­tion and meet the ag­gres­sive chal­lenge from multi­na­tion­als, Manali Petro­chem­i­cals Ltd (MPL) plans to in­crease its ca­pac­ity to pro­duce poly­ols from the cur­rent 50000 TPA to 150,000 TPA us­ing an in­no­va­tive tech­ni­cal process to pro­duce ad­di­tional Propy­lene Ox­ide (PO). The in­vest­ment en­vis­aged for this is ap­prox­i­mately Rs 100 crore and would be stag­gered over 4-5 years. The first phase would be com­pleted by March 2016, tak­ing MPL’s pro­duc­tion from 50,000 MPTA to 75,000 MTPA. The com­pany has re­ceived the nec­es­sary ap­provals for this ex­pan­sion. The sub­se­quent phases, each with 25000 MT ca­pac­ity ad­di­tions, would be com­mis­sioned ev­ery 12 months. In­cre­men­tal turnover would be ap­prox­i­mately Rs 280-300 crore with ev­ery ad­di­tional phase.

Polyol de­mand in In­dia is es­ti­mated to be roughly 500000 MT in a mar­ket dom­i­nated by transna­tional petro­chem­i­cal com­pa­nies such as Dow, Shell, Bayer, BASF and Hunts­man. This brown field in­vest­ment will help Manali Petro to pro­duce cost-ef­fec­tive Propy­lene Ox­ide (PO) in man­u­fac­tur­ing prod­ucts like Polyurethane Foams (PU), which is ex­ten­sively used in the automotive, con­struc­tion, re­frig­er­a­tion and other in­dus­trial prod­ucts. The key raw ma­te­rial for the pro­duc­tion of PU and Propy­lene Gly­col (PG) is PO. Ashwin C Muthiah, Chair­man Manali Petro said, “It is a reaf­fir­ma­tion of our faith in the In­dia growth story.”

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