By: ICN Bureau
Last updated : March 06, 2018 8:18 pm
The Board for Reconstruction of Public Sector Enterprises (BRPSE) has proposed modernisation of the plant of Hindustan Fluorocarbons Ltd (HFL), a subsidiary of Hindustan Organic Chemicals Limited (HOCL), to make the product competitive and diversific
The Board for Reconstruction of Public Sector
Enterprises (BRPSE) has proposed modernisation of the plant of Hindustan
Fluorocarbons Ltd (HFL), a subsidiary of Hindustan Organic Chemicals Limited
(HOCL), to make the product competitive and diversification of the product mix.
The Board recently discussed the status implementation of the BRPSE on the
revival of HFL manufacturing unit at Hyderabad in Andhra Pradesh and its
performance and future outlook.
The board advised the Department of Chemicals and Petrochemicals (DCPC) to bring
out a proposal for modernisation of its plant to make it product competitive and
diversification of the product mix.
The board further advised the DCPC to seek legal opinion on demand of penal
interest by the APSEB for taking further action in this regard.
The company is depending on a single product to generate revenue which in fact
has a severe competition from cheaper imports.
The board observed that the cost of production of various grades of engineering
plastic polytetrafluoroethylene (PTFE) is more than the imported products making
the product uncompetitive. This is mainly due to uneconomic size of the plant
and old technology. Therefore, the company cannot make sustainable business only
on PTFE, it said.