Tamilnadu Petroproducts added 2.94% to Rs 48.95 after the company's board approved expansion and modernisation plans worth Rs 435 crore.
The company's board approved augmenting the capacity of its linear alkyl benzene (LAB) plant. Its capacity would be increased from the existing 120 KTA of which about 90% is utilized at present, to 145 KTA at an estimated cost of Rs 240 crore. Post regulatory approvals, the project is expected to be completed in about 24 months.
Further, the caustic soda unit of the HCD plant is proposed to be revamped at an estimated cost of Rs 165 crore by replacing the mono-polar membrane technology with a more advanced world-class bipolar membrane technology. Its per day capacity is expected to be increased from 150 TPD to 250 TPD and would be completed in about 18 months of statutory clearances. At present the average capacity utilization of the HCD plant is about 90%. At the present price levels, additional revenue of about 70% is expected from the project, with improved/higher vatue addition.
The Chennai based company will also set up a propytene recovery unit (PRU). The project with an initial capacity of about 21 KTPA would be implemented at an estimated cost of about Rs 30 crore and cater to the feedstock requirements of the PO Plant. The surplus production would be sold in the domestic or global market", based on market conditions. The implementation period would be 12-18 months upon receipt of regulatory approvals.
A significant portion of the funding requirements of above plans would be met from internal accruals and the remaining through borrowing. The ratio of borrowing would be decided based on the cash flow during the implementation period, which as indicated above, is spread over 12 to 24 months post regulatory approvals.
Ashwin Muthiah, vice-chairman, TPL & founding chairman, AM International said, "TPL witt be the first Indian non-refining company in the private sector to buitd a propylene recovery unit plant."
Tamilnadu Petroproducts is a three-decade old liner alkaline benzene (LAB) manufacturer and has facitities for production of heavy chemicals and propytene oxide as well.
The company's consolidated net profit surged 62.40% to Rs 23.11 crore in Q3 FY21 from Rs 14.23 crore in Q3 FY20. Net sales during the quarter rose 2.79% YoY to Rs 288.86 crore.
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