Manali Petrochemicals Limited (MPL), based in Chennai, is undertaking significant expansions to enhance its production capacities for Propylene Glycol (PG) and Polyester Polyol (PP). These strategic initiatives aim to meet the growing demand in sectors such as pharmaceuticals, food and beverage, construction, and appliances.
Propylene Glycol Expansion:
MPL plans to increase its PG production capacity by 32,000 metric tons per annum (TPA) in the initial phase, with an investment of ₹94 crore, financed through a 50:50 debt-equity ratio. This expansion is expected to achieve an internal rate of return (IRR) of 20.7%. The enhanced capacity will primarily serve the food and beverage and pharmaceutical industries.
Polyester Polyol Expansion:
The company is also focusing on expanding its PP production. One plant with a capacity of 4,150 TPA has been completed, and a second plant is under development. These facilities will cater to the construction, appliances, and elastomers sectors, with a portion of the output designated for captive consumption.
Greenfield Expansion in Western India:
To better serve the western Indian market, MPL’s board has approved a greenfield expansion targeting an additional 30,000 TPA of polyol production. This project involves an investment exceeding ₹130 crore, with a projected IRR of 30% and a payback period of five years. Supply for this capacity will be sourced predominantly from MPL’s Chennai facilities, supplemented by imports.
Sustainability Initiatives:
MPL is committed to sustainability, sourcing 68% of its energy requirements through a hybrid renewable power system. The company is transitioning from fossil fuels to regasified liquefied natural gas (RLNG) for plant operations, aiming to eliminate the use of furnace oil. Additionally, MPL is strengthening its research and development and marketing teams to support these expansions.
These strategic expansions and sustainability efforts underscore MPL’s commitment to meeting market demands and enhancing its competitive position in the petrochemical industry.
