The dispute between Madras Refineries Ltd (MRL) and Spic companies, Manali Petrochemical Ltd and Spic Organics Ltd, over raw material prices has been resolved.
According to the memorandum of settlement signed earlier in the month, MRL need not pay the award amount to Manali Petrochemicals and Spic Organics Ltd. Instead, MRL has agreed to refund one of the subsequent price hikes. Manali Petrochemicals and to Spic Organics are entitled to a refund of Rs 4.24 crore and Rs 3.69 crore, respectively.
Both sides have also agreed to withdraw the civil cases pending before the Supreme Court.
Manali Petrochemical makes propylene oxide and propylene glycol and has an installed capacity of 24,000 tpa and 13,250 tpa, respectively.
Spic Organics manufactures polyols and has an capacity of 14,000 tpa. Spic Organics was earlier known as UB Petro.
The key raw material inputs for making these products are propylene, chlorine, and furnace oil.
Addressing shareholders at last year's annual general meeting, A C Muthiah, vice-chairman and president, Spic, and chairman, Manali Petrochemical, said the company would
aim to reduce its expenditure on raw
materials to more realistic levels to contain production cost.
"The company is aiming to settle all disputes with a major raw material supplier and amicably settle all pending cases," the annual report stated. /TITLE>
