Haldia Petrochemicals to invest Rs. 3,000 crore for setting up propylene, phenol and acetone plants
Chemical

Haldia Petrochemicals to invest Rs. 3,000 crore for setting up propylene, phenol and acetone plants

With the commissioning of these plants by Q1 2026, HPL's overall chemical business portfolio is expected to increase by an additional Rs. 5,000 crore

  • By ICN Bureau | October 12, 2023

Haldia Petrochemicals Limited (HPL) is setting up the first on-purpose Propylene plant in India based on Olefin Conversion Technology (OCT) and the largest Phenol in India at Haldia, West Bengal, becoming India's first integrated player in the Phenolics chain. 

HPL has been exploring the possibility of becoming a leader in the niche segment of speciality chemicals that have a high demand nationwide. Speciality chemicals have helped the company earn a revenue of Rs 999 crore in FY23. In addition, HPL is setting up the largest Phenol plant in the country with a capacity of 300 KTPA Phenol and 185 KTPA Acetone.

“With the commissioning of these plants, the overall chemical business portfolio is expected to increase by an additional Rs. 5,000 crore.  The company has ambitious targets to complete the project by Q1 2026," Navanit Narayan, Whole Time Director and Chief Executive Officer, HPL said. Talking to Indian Chemical News, Narayan informed that HPL is investing Rs. 3,000 crore on setting up these plants. 

"As the plans move towards fruition, there will be advancement in areas such as digitization. This will generate direct and indirect employment in the downstream chemical industry. The total industrial scenario evolving around chemicals will witness tremendous growth within a very short period," Narayan added.

The demand for petrochemicals is growing due to a large population base, favourable demographics, increasing economic growth, urbanization, and its positive impact on automobile production, construction, infrastructure, agrochemicals and pharmaceuticals. This proposed investment will likely be the largest in West Bengal in the chemical sector over the last two decades. It has also led to an increase in the number of ancillary units. 

HPL's story is one of resilience and success. in 2014, the company faced a temporary closure, but a change in management ownership led to a spectacular turnaround. Under The Chatterjee Group's (TCG) stewardship, HPL has consolidated its financial position and diversified its operations into new territories and product lines, embracing trading, speciality chemicals, and fuel retailing. This remarkable journey has ensured the survival of over 1,300 processing units, sustaining more than one million direct and indirect employment opportunities in the eastern region's polymer processing sector. Furthermore, HPL has become a significant revenue generator for the state and central exchequer.

 

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