Tamilnadu Petroproducts to invest Rs 435 crore to expand production units

By: |
March 31, 2021 12:10 AM

The LAB capacity would be increased from 1.2 lakh TPA to 1.45 lakh TPA at an estimated cost of Rs 240 crore. The project would be commissioned in about 24 months.

At the present price levels, additional revenue of about 70% is expected from the project, with improved or higher value addition, the company said in a statement.At the present price levels, additional revenue of about 70% is expected from the project, with improved or higher value addition, the company said in a statement.

Chennai-based Tamilnadu Petroproducts (TPL), the petrochemicals arm of AM International Group, is expanding its production divisions at an investment of Rs 435 crore. These include capacity augmentation of Linear Alkyl Benzene (LAB) division, revamp of caustic soda facilities and setting up a Propylene recovery unit (PRU). TPL has its plant at Manali in Tamil Nadu that houses different divisions.

The LAB capacity would be increased from 1.2 lakh TPA to 1.45 lakh TPA at an estimated cost of Rs 240 crore. The project would be commissioned in about 24 months. The company will invest Rs 165 crore to modernise the caustic soda and chlorine unit by replacing the mono-polar membrane technology with a more advanced bipolar membrane technology.

On completion in about 18 months after required approvals, the production capacity for caustic soda unit will go up to 250 tonne per day from the current 150 tonne. At the present price levels, additional revenue of about 70% is expected from the project, with improved or higher value addition, the company said in a statement.

The PRU, first of its kind in India by a private sector player in the non-refining sector, would involve an outlay of about Rs 30 crore. This will be set up in the same PO manufacturing complex, saving significant trucking and energy costs. Propylene, a bulk chemical intermediate, is the raw material for Propylene Oxide and is derived from LPG.

TPL is in advanced talks with various domestic and international vendors for LPG for the project. The project, technology of which has been developed in-house by the company’s R&D team of engineers and environmental scientists, will be implemented in 12-18 months.

Ashwin Muthiah, vice-chairman, TPL & founding chairman, AM International, said, “TPL will be the first Indian non-refining company in the private sector to build a propylene recovery unit plant. It shows our commitment to bring manufacturing efficiencies by continuous upgrading and introducing state-of-art technology solutions. It is in line with our group philosophy to maximise margins by introducing process efficiency and value additions.”

In adherence to the group’s philosophy of optimum leverage, a significant part of the expansion will be funded via internal resources and the remaining through other sources. TPL is a three-decade old LAB manufacturer and has facilities for production of heavy chemicals and Propylene Oxide also.

Ravi, Group CEO- petrochemicals, AM International, said, “The projects would make the country self-reliant in this segment by meeting the domestic demand.”

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