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Manali Petrochemical Ltd to invests Rs 100 crores to expands its capacity from 50,000 TPA to 150,000 TPA

| | May 21, 2015, at 03:49 am
New Delhi, May 20 (IBNS): 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 INR 100 crore and would be staggered over 4-5 years. The first phase would be complete by March 2016, taking MPL’s production from 50,000 MPTA to 75,000 MTPA. 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 INR 280-300 Cr 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.

Commenting on the announcement, Ashwin C Muthiah, Chairman Manali Petro said, “It is a reaffirmation of our faith in the India growth story. This move will give Manali Petrochemicals significant scale and ability to further penetrate the market. The latest technology will ensure efficient and global manufacturing best practices.”

“The expansion is in line with our endeavour to serve our growing customer base with better products and providing superior customer experience and service,” he added.

 

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