Chemical units eye growth

Three petrochemical and chemical sector players in Kolkata were aiming to expand in 2008 and beyond.

Haldia Petrochemicals Ltd (HPL) laid stress on working on a detailed feasibility report that will focus on a new product mix that will not add to naphtha consumption but help improve margins during the next petrochemicals down-cycle estimated between 2010-2013.

Intermediate products like butene 1 and styrene were up on the list as they had a low gestation period while global demand and prices were up. HPL now imported butene 1 for internal consumption and could set up a 55000tpa plant.

This apart, HPL was exploring downstream business opportunities at the proposed chemical hub at Nayachar. HPL was in the middle of its expansion project, Supermax, to take naphtha cracking capacity of 523 kilo tons to 670 kilo tons by end of 2008.

HPL aimed to create employment for 28000 people, both direct and indirect, in its mother plant as well as downstream units in West Bengal over the next one year.

South Asia Petrochem limited (SAPL) and Egyptian Petrochemicals Holding Company (ECHEM) has jointly floated a new company Egypt India Pet Chem in September this year.

SAPL intends to start a new manufacturing facility in Damietta in Egypt with an installed capacity of 315,000tpa for PET resin. It has entered into a 70:30 JV with ECHEM, in favour of SAPL.

SAPL, with installed capacity of 1,80,000tpa, would invest an estimated $100 million, to be raised through a mix of equity and debt. Egyptian and European banks had been approached while Canara Bank was funding $15 million", said C K Dhanuka, vice-chairman of SAPL.

The company plans to penetrate the markets like Western Europe, Middle East and Africa. Similar optimism ruled at Kolkata based Kanoria Chemicals & Industries Ltd (KCIL).

KCIL spent around Rs 450 crore in the last three to four years, and would not slow down the growth plans in the recent future, said N K Nolkha, chief financial officer, KCIL.

The company was expanding its caustic soda production capacity by more than 200 per cent over the years from 90,000 tons per annum (TPA) of chlor-alkali at its Renukot plant in Uttar Pradesh to 130,000tpa by the end of this fiscal.

KCIL will enhance the chlorinated derivatives facility at Renukot as well with investment of around Rs 150 crore, of which Rs 90 crore has already been spent.

KCIL raised $15 million as loans from International Finance Corporation in March this year, together with another $ 20 million through Foreign Currency Convertible Bonds(FCCB) issue in May 2006.