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Manali Petrochemicals to infuse Rs 150 cr towards expansion

Wednesday, 23 Sep 2020
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Manali Petrochemicals (MPL) has received the Board's approval to increase the capacity of propylene glycol (PG) from the existing 22,000 tpa to 70,000 tpa at an estimated cost of about Rs 150 crore.

The project will be implemented in two phases. In Phase-I 24,000 tpa will be added at a cost of around Rs 60 crore to be met through internal resources.

Subject to receipt of regulatory approvals, the project is expected to be completed in 18 to 21 months. MPL is the only domestic manufacturer of PG which is widely used in pharmaceutical/food and flavours and also for industrial applications. Subject to market conditions, the present capacity is utilised by MPL in full.

The demand for PG in India is about 1,00,000 tpa which is estimated to grow by five percent annually. Since the current shortfall is met through imports, addition of the above new capacity is expected to increase the domestic market share of MPL and improve its operations.

The entire project will be handled in-house by redesigning the current facilities to ensure cost-effectiveness and the most prudent budgetary practices.

On completion of the project, the company, the only domestic manufacturer of the product, will meet a substantial part of the country's annual demand of about 1,00,000 of PG.

Currently, a significant quantum is imported, which accounts for more than 75 percent of the entire country's demand for PG.

The substitution of imports will save significant import bills and also propel India towards self-sufficiency in PG production capability.

The primary focus of the project will be to supply to two sectors -- pharmaceutical and food. The growth in demand expected in future in these two sectors will help MPL meet its sales target post the expansion. The revamp will also ensure environment-friendly practices.

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