Tamilnadu Petroproducts Ltd (TPL) plans to increase the capacity of its linear alkyl benzene (LAB) and caustic soda plants and set up a new propylene recovery unit (PRU) at its complex at Manali in southern Tamil Nadu state as part its expansion plans, it said.
The expansion project is estimated to cost around Indian Rupees Rs 4.35 billion ($59.2 million), it said said in a regulatory filing.
The company plans to increase the capacity at its LAB plant to 145,000 tonnes per annum from 120,000 tonnes per annum currently.
The project will cost Rs 2.4 billion and will be commissioned within 24 months of receiving all the regulatory approvals, it said.
TPL also plans to invest Rs 1.65 billion to modernise its caustic soda unit which will increase the plant’s capacity from the current 150 tonnes per day to 250 tonnes per annum.
The expanded capacity is expected to come online within 18 months of receiving the statutory clearances, TPL said.
TPL is also setting up a new 21,000 tonnes per annum PRU unit at an estimated cost of Rs 300 million. This plant will cater to the feedstock requirements of its 16,000 tonnes per annum propylene oxide (PO) plant.
“The surplus production would be sold in the domestic or global market based on market conditions,” it said.
The company plans to bring the new PRU unit online within 12-18 months of receiving regulatory approvals.
“The aforesaid projects are aimed to improve the share of Tamilnadu Petroproducts in the domestic market for LAB and caustic soda, demand for which is expected to grow by about 4% per annum in the coming years,” the company said.
The company added that it plans to fund its expansion projects through internal accruals and loans.