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India’s leading petrochemical producer, Haldia Petrochemicals Ltd (HPL), is planning to establish a polycarbonate production plant in West Bengal with a capital expenditure of $1 billion (approximately ₹8,700 crore). The company intends to utilize spare land at its existing site in Haldia, signaling further diversification into the chemical downstream business.
Polycarbonate, a thermoplastic compound widely used in industries such as automotive and packaging due to its durability under heat, impact, and chemicals, is currently not manufactured in India. Upon the successful commencement of commercial production, polycarbonate would serve as an import substitute. The demand for this thermoplastic has been consistently rising in India, driven by sustained growth in the automotive and packaging sectors.
At present, India meets its polycarbonate demand entirely through imports. According to a company official, polycarbonate production is a logical extension and forward integration of HPL's phenol production, which the company has undertaken under a license from Lummus Technology.
The basic raw materials for polycarbonate, phenol and acetone, are expected to be available internally at HPL by mid-2026. Owned by New York-based industrialist Purnendu Chatterjee, Haldia Petrochemicals Ltd is currently setting up a phenol plant at Haldia as part of its major pivot toward the chemical downstream sector.
The company official further stated, “India is heavily reliant on imports for polycarbonate, a downstream product of phenol. We are establishing a phenol manufacturing plant, so the diversification into polycarbonate production is a natural progression.”
Sourcing of funds
A capital expenditure of $1 billion (approximately ₹8,700 crore) is required for the project. The Chatterjee Group-owned Haldia Petrochemicals Ltd is seeking an investment partner to partially fund the new polycarbonate production facility. Additionally, the company is exploring a technology partner for the project.
Currently, West Asian companies such as the Abu Dhabi National Oil Company (ADNOC) through its subsidiary Covestro, and Saudi Basic Industries Corporation (SABIC) are major producers of polycarbonate. Other leading producers include LG Chem of South Korea and several companies from Japan and Taiwan.
Haldia Petrochemicals Ltd has faced losses due to the ongoing downcycle in the petrochemical industry. Consequently, funding for any new project will depend on lenders’ assessments of the project’s viability and the expected return on investment from this import-substitute polycarbonate venture.
Phenol plant
In November 2024, Haldia Petrochemicals Ltd. (HPL) announced the signing of a license amendment with Lummus Technology to expand its phenol production capacity for the upcoming phenol and acetone plant in Haldia, West Bengal. The agreement, signed by Navanit Narayan, Whole-time Director & CEO of Haldia Petrochemicals Ltd., and Romain Lemoine, Chief Business Officer of Polymers and Petrochemicals at Lummus Technology, marks a key step in increasing HPL’s phenol production capacity from 300,000 tonnes per annum (TPA) to 345,000 TPA.
This capacity expansion aligns with HPL’s ambitious growth strategy and underscores the company’s commitment to supporting India’s chemicals industry. As part of a substantial greenfield investment exceeding ₹5,000 crore in Haldia, HPL is focusing not only on phenol production but also on cumene and acetone to cater to rising domestic demand and promote downstream chemical sector growth.
The facility will also feature India’s first on-purpose propylene plant utilizing olefins conversion technology (OCT), which will be supplied by Lummus Technology. HPL aims to complete the project by mid-2027. This expansion represents a significant milestone for the company, solidifying its position as a vital contributor to India’s industrial growth and advancing its role in producing essential chemical intermediates.
Narayan commented, "Our collaboration with Lummus Technology has enabled us to enhance production capabilities and meet India’s growing demand for phenol and acetone. The capacity upgrade to 345,000 TPA underscores our commitment to delivering high-quality products that support the country’s chemical and allied industries."
The signing ceremony also emphasized Lummus Technology’s critical role in supporting HPL’s strategic initiatives. "This partnership reflects our shared dedication to innovation and progress in the petrochemical sector. We are proud to support HPL in scaling up its operations to meet market demands," said Romain Lemoine, Chief Business Officer of Polymers and Petrochemicals, Lummus Technology.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
