Manali Petrochemicals (Manali Petro) acquired the board’s approval to enhance the capacity of Propylene Glycol (PG) from the prevailing 22,000 TPA (tonnes every year) to 70,000 TPA by addition of 48,000 TPA, at an estimated value of about Rs. 150 crore.
The undertaking will probably be carried out in two phases.
In the primary part 24,000 TPA can be added at a price of round Rs 60 crore, to be met by inner sources. Subject to receipt of regulatory approvals, the undertaking is predicted to be accomplished in 18-21 months. It could also be famous that MPL is the one home producer of PG which is broadly used in pharmaceutical/Food & Flavours and likewise for industrial purposes. Subject to market situations, the current capacity is utilised by MPL in full.
“The demand for PG in India is about 100,000 TPA which is estimated to growby 5 per cent 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,” stated the corporate.
The complete undertaking will probably be dealt with in-house by redesigning the present services to guarantee cost-effectiveness and probably the most prudent budgetary practices, stated the corporate.
On completion of the undertaking, the corporate, the one home producer of the product, will meet a considerable a part of the nation’s annual demand of about 100,000 MT of PG. Currently, a major quantum is imported, which accounts for greater than 75 per cent of the complete nation’s demand for PG. The substitution of imports will save important import payments and also will propel India in direction of self-sufficiency in PG manufacturing functionality, stated the corporate.
The major focus of the undertaking will probably be to provide to two sectors – pharmaceutical and meals. The progress in demand anticipated in future in these two sectors will assist MPL meet its gross sales goal put up the expansion. The revamp will even guarantee environment-friendly practices.
It has been the philosophy of the AM group to be low on leverage. Keeping in line with this objective, MPL’s expansion will probably be absolutely funded through inner sources with out recourse to any exterior borrowing, stated Ashwin Muthiah, Chairman of AM International.
He added, “In the post Covid-19 times, our business strategy is aligned towards the nation’s dream of an “Atmanirbhar Bharat” through the ‘Make In India initiative. The investments are in tune with our credo of creating sustainable businesses which are future proof. We are building our plants through indigenous technology and investing in our home-grown R&D efforts with a clear focus on self-reliance and world-class domestic production.”
M Ravi, Group CEO, Petrochemicals and MD-MPL stated, “We need our merchandise to not solely clear up an inherent demand hole however be a very good import substitute for the nation, saving treasured international alternate.