Manali Petrochemicals Limited (MPL) Expands Petrochemical Portfolio: New Projects and Strategic Analysis

1. new project starts in: Propylene Glycol (PG) and Polyester Polyol (PP) plants

Manali Petrochemicals Limited (MPL) is actively expanding its petrochemical portfolio, most notably in the planning and implementation of the Propylene Glycol (PG) and Polyester Polyol (PP) projects. "We are focusing on a number of new projects that have recently been announced and are beginning to be executed," R. Chandrasekar, MPL's managing director, told an analyst/investor meeting."

specifically, MPL's first PG plant project will be carried out in phases with an initial capacity of 32,000 metric tons per year (TPA). The project has a model investment of Rs 0.94 billion, a debt-to-equity ratio of 50:50 and an internal rate of return (IRR) of up to 20.7 per cent. Through this capacity expansion, MPL will mainly cover the two major market segments of the food and beverage and pharmaceutical industries.

2. Polyester Polyol (PP) Plant Construction Progress

in addition to the PG project, MPL is also actively promoting the construction of the Polyester Polyol (PP) plant. According to the Chandrasekar, MPL plans to build two PP plants, one of which has been completed with an annual production capacity of 4,150 metric tons. The second plant is currently under construction and will focus on the construction, equipment and elastomer sectors, especially in combination with polyester polyols for specific applications to meet internal consumer demand. In addition, MPL also revealed preliminary plans for green space expansion in the West Indian region.

3. West India Market Expansion Strategy

in order to meet the needs of the West Indian regional market, MPL's board of directors recently approved an expansion plan. At the beginning of the plan, the target production capacity is set at 30,000 tons of polyether per year, the model investment is more than 1.3 billion rupees, the expected internal rate of return (IRR) is 30%, and the investment payback period is five years. MPL will supply most of the polyether capacity from its plant in Chennai, supplemented by some imports.

4. other important projects and strategic adjustment

in addition to the new projects mentioned above, MPL has recently implemented a series of smaller but noteworthy projects. These include:

renewable energy utilization: MPL purchases renewable energy through hybrid power systems to meet 68% of the company's overall demand. 
R & D and marketing team strengthening: MPL is strengthening its R & D and marketing team to increase product competitiveness and market share. 
fuel transition: MPL is shifting from fossil fuels to liquefied natural gas (RLNG) as the main fuel for plant operations to completely eliminate the use of furnace oil. 
Storage and Operations Optimization: MPL has added additional storage capacity for PO and Polyether and is committed to optimizing the indirect costs of plant operations.

To sum up, Manali Petrochemicals Limited (MPL) is actively expanding its petrochemical product portfolio and continuously improving its competitiveness through a series of new projects and strategic adjustments.