Manali Petrochemicals jumps 9 per cent on finalising plans to triple annual production capacity for Propylene Glycol
Manali Petrochemicals (MPL) has finalised plans to triple its annual production capacity for Propylene Glycol (PG) from 22,000 MT to 70,000 MT in two phases at an investment of about Rs 150 crore.
The capacity was initially proposed to expand 46,000 MT, which is set to complete in 18-21 months and then, by another 24,000 MT. 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, which is the only domestic manufacturer of the product, will meet a substantial part of the country's annual demand of about 100,000 MT of PG. Currently, a significant quantum is imported that accounts for more than 75 per cent of the entire country's demand for PG. The substitution of imports will save significant import bills and will 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 the future in these two sectors will help MPL meet its sales target post the expansion. The revamp will also ensure environment-friendly practices.
It has been the philosophy of the AM group to be low on leverage. Keeping in line with this goal, MPL's expansion will be fully-funded via internal resources without recourse to any external borrowing.
Manali Petrochemicals is a leader in the production and marketing of Propylene Oxide, Propylene Glycols, and Polyols in India. The company operates two grass-root production facilities at Manali to manufacture Propylene oxide (PO), Propylene Glycol (PG), and Polyols.