Manali Petrochemicals to invest Rs. 150 crore on PG capacity expansion
The capacity is proposed to be expanded initially to 46,000 MT to be completed in 18-21 months and then by another 24,000 MT thereafter.
Manali Petrochemicals Limited (MPL) a member of the AM International Group, today announced that it 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 is proposed to be expanded initially to 46,000 MT to be completed in 18-21 months and then by another 24,000 MT thereafter. 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, 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, which accounts for more than 75% 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 future in these two sectors will help MPL meet its sales target post the expansion. The revamp will also ensure environment-friendly practices.
MPL's expansion will be fully funded via internal resources without recourse to any external borrowing.
Ashwin Muthiah, Chairman, AM International said, "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 said, "We want our products to not only solve an inherent demand gap but be a good import substitute for the country, saving precious foreign exchange."