MPL to invest Rs 100 crore to expands capacity
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.”