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Chennai-based Manali Petrochemicals Ltd (MPL), a leading petrochemical manufacturer and part of Singapore-based AM International, has informed stock exchanges that it is awaiting the Consent to Operate (CTO) from the Tamil Nadu State Pollution Control Board—a prerequisite for commencing commercial production at its expanded propylene glycol plant. The company has already applied for the approval and plans to begin production as soon as it is granted.
In a filing with the stock exchanges, the company stated, “We are awaiting the Consent to Operate (CTO) from the Tamil Nadu State Pollution Control Board. Commercial production at the plant will commence upon receipt of the required approval. The scheduled expansion in propylene glycol capacity marks a significant milestone. This newly established, state-of-the-art facility will begin operations once the approval is in place.” .jpg)
Capacity expansion
With this expansion, MPL will increase its propylene glycol production capacity by 50,000 tonnes per annum (TPA), augmenting the existing capacity of 22,000 TPA. This strategic initiative underscores MPL’s steadfast commitment to the Government of India’s Make in India vision, bringing advanced manufacturing capabilities to the domestic market.
Ashwin Muthiah, Chairman of MPL and Founder Chairman of AM International, Singapore, commented, “I congratulate the MPL team on the capacity expansion and the inauguration of the expanded propylene glycol plant today. This state-of-the-art facility demonstrates our commitment to sustainable growth, meeting evolving customer expectations, and reinforcing our market leadership. It also reflects our focus on local manufacturing and alignment with the government’s ‘Atmanirbhar Bharat’ initiative—a step toward reducing import dependence and contributing to a resilient domestic economy.”
By leveraging cutting-edge technology and harnessing the expertise of local talent, MPL aims to significantly reduce India’s reliance on imported propylene glycol and meet the growing demands of domestic and industrial consumers. This expansion will further strengthen India’s position as a competitive global manufacturing hub. MPL continuously strives to enhance its customer-centric approach through product customization and by upgrading safety and environmental standards for the betterment of the wider community. The company markets both propylene glycol and polyols.
A part of the Singapore-headquartered AM International Group, with revenues exceeding US$ 2 billion, MPL has two wholly owned subsidiaries: Amchem Speciality Chemicals Pvt Ltd, Singapore, and Manali Speciality Pvt Ltd, India. It also has four step-down subsidiaries (SDS): Notedome Ltd, UK; Notedome Europe GmbH, Germany; PennWhite Ltd, UK; and PennWhite India Pvt Ltd, India.
Capex
Last year, MPL proposed to expand its petrochemical production portfolio by launching new projects for propylene glycol and polyester polyol. This expansion, involving both greenfield and brownfield routes, is expected to entail a total investment of over Rs 130 crore. The company is funding these projects through a combination of internal accruals and debt, with the specific funding proportions to be finalized at a later stage.
MPL projected an internal rate of return (IRR) of 30 percent and a five-year payback period. The company’s facility in Manali, Chennai, will predominantly meet the requirements for the expanded polyol capacity, supplemented by limited imports. In 2024, MPL began executing some of the newly announced projects, including a propylene glycol plant with an initial Phase I capacity of 32,000 TPA. The estimated capital outlay for this project is Rs 94 crore, to be funded through a 50:50 debt-equity ratio. The project is expected to yield an IRR of 20.7 percent. The expanded propylene glycol capacity will primarily cater to the food & beverage and pharmaceutical sectors.
Additionally, MPL has proposed two new polyester polyol projects. Of these, one project with a capacity of 4,150 TPA has already been completed, while the second remains under execution. The company is focusing on end-use segments such as construction, appliances, and elastomers, with polyester polyol also intended for captive consumption. MPL has undertaken several notable projects in recent years.
The company is currently sourcing renewable energy through a hybrid power system, meeting 68 percent of its total energy requirement. It is also strengthening its research and development (R&D) and marketing teams. The next phase of its sustainability strategy involves transitioning from fossil fuels to regasified liquefied natural gas (RLNG) for captive consumption—aiming to completely eliminate the use of furnace oil. MPL has acquired additional storage capacity for polyols and is working on optimizing overheads in plant operations.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
