Manali Petrochemical said that the Ministry of Environment, Forest, and Climate Change, Government of India, has granted environmental clearance to the company for the expansion of its propylene glycol (PG) capacity.
In September 2020, the company announced its 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.
MPL is the only domestic manufacturer of PG which is widely used in Pharmaceutical/ Food & Flavours and also for industrial applications.
"The demand for PG in India is about 1 lakh TPA which is estimated to grow by 5% annually. Since the current shortfall is met through imports, addition of the above new capacity is expected to increase the domestic market share of MPL and improve its operations, the company had said in a statement.
In an exchange filing made yesterday, the company further informed that the first phase would be completed within 18-21 months of receipt of the other regulatory approvals, such as consent to establish from the State Pollution Control Board.
Manali Petrochemical, a part of the AM International group, is a Chennai-based manufacturer of petrochemical products, namely, propylene oxide (PO), propylene glycol (PG), polyols, system polyols and other allied products. MPL has two manufacturing facilities situated at Manali in Chennai.
The company's consolidated net profit declined 54.52% to Rs 36.28 crore on a 1.59% fall in sales to Rs 324.44 crore in Q1 FY23 over Q1 FY22.
The scrip rose 0.31% to currently trade at Rs 96.55 on the BSE.
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