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Bhansali Engineering Polymers Board approves brownfield ABS expansion project

Wednesday, 13 Oct 2021
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The Bhansali Engineering Polymers Board has approved a brownfield ABS expansion project at the company's existing plants i.e. Abu Road (Rajasthan) & Satnoor (Madhya Pradesh) for enhancing overall ABS production capacity to 2,00,000 tpa.  
The approximate capex for the project is Rs 500 crore, to be funded through reserves and surplus.  The project will be implemented tentatively by December 2024. 
The company's management has continuously endeavoured its efforts to find a suitable land parcel for port-based greenfield ABS Expansion Project, as it has its own advantages, inter alia, handling of the key raw materials through pipelines from liquid jetty to plant. 
The Management studied and visited various port locations and one such suitable land parcel was shortlisted at Pipavav Port, but the same had issues, so far as clear title was concerned. 
The company management has been simultaneously evaluating the brownfield ABS expansion project at its existing locations. 
It has received proposals from various ABS Technology providers, one of them being Toyo Engineering (Toyo), an engineering consultancy & contracting company, which is a blend of Japanese technology and management practices with Indian expertise and ingenuity. 
Toyo has its own Continuous Bulk SAN Line Licensed technology which has been applied in various plants around the world (capacity exceeding approximately 1,200 ,000 tpa). The proposal received from Toyo is based on the biggest Bulk San line set-up in China, being steady and operational for more than 12 years. 
Further, the company is also in receipt of the proposal from Nippon A&L Inc, (a joint venture capitalised by Sumitomo Chemical Co and Mitsui Chemicals) for Ultra-Modern latest High Rubber Graft (HRG) technology with full automation. 
The company's Satnoor plant was set up in 1990, based on ABS technology from Nippon A&L Inc (Sumitomo Chemical Group). 
The environmental clearance for 50,000 tpa HRG (for captive consumption to manufacture 2,00,000 tpa ABS) at Satnoor Plant and 1,30,000 tpa ABS Production at Abu Road Plant has already been received. 
The company is in the process of obtaining environmental clearance for increasing the ABS capacity from 1,30,000 tpa to 2,00,000 tpa at Abu Road Plant in Rajasthan, which will be received shortly. 
The following are the points, summarised post in-depth analysis and critical evaluation of the Port-based greenfield ABS Expansion Project viz-a-viz brownfield ABS Expansion Project at the existing plants:
Greenfield ABS Expansion Project:
Finding suitable land parcel with Clear Title within a radius of 5 to 10 km from the Port liquid jetty in itself is a challenge and time consuming. 
The project cost to be approximately between Rs 1,500 to Rs 2,000 crore and project implementation may take approximately five to six years. 
Brownfield ABS Expansion Project:
Sufficient land already available at the existing locations (expansion up to 4,00,000 tpa can be easily carried out in future, without new land acquisition); requisite infrastructure facilities already available at both the existing locations (i.e. full-fledged research and development centre, utilities, tank farm area, employee colony, school facilities, road & transportation, etc.) which will play an important role in low capex of brownfield ABS Expansion. 
The environmental clearance at existing plants is in place which will help in expediting the project implementation tentatively by December 2024; and capex requirement will be approximately Rs 500 crore.
Accordingly, the Board has approved a brownfield ABS expansion project at the company's existing plants i.e. Abu Road (Rajasthan) & Satnoor (Madhya Pradesh).
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