Kothari Petrochemicals Ltd (KPL), engaged in the manufacture of polyisobutylene (PIB), announced plans to acquire land in Andhra Pradesh for future expansion. On Monday, the company’s Board approved the purchase of land in the State for ₹74 crore, which will facilitate its long-term growth plans.

In financial results for the September 2024 quarter, KPL reported a profit after tax (PAT) of ₹16.33 crore, a decline from ₹18.54 crore in the same period last year, mainly due to a change in raw material mix. However, revenue from operations rose to ₹180.59 crore, up from ₹161.55 crore in Q2 of the previous fiscal year, according to a filing with stock exchanges.

For the half-year period ended September 30, 2024, the PAT was slightly higher at ₹35.69 crore compared to ₹34.20 crore in the year-ago period.

In 2023-2024, KPL continued as the sole manufacturer of PIB, meeting approximately 91 per cent of India’s demand for conventional PIB, which saw a 15 per cent increase in domestic consumption in FY24.

The ₹603 crore company operates a facility in Manali, Chennai, with an annual production capacity of about 48,000 tonnes. In FY24, KPL produced 40,782 tonnes of PIB, a notable increase from 32,640 tonnes in FY23.

KPL sources its raw materials from CPCL and other suppliers, including Reliance Industries Ltd (RIL) to produce PIB in various grades for use in lube oils, plastics, paints, and rubber industries.

PIB, a liquid polymer derived from isobutylene, serves multiple applications, including lubricants, transmission fluids, adhesives, sealants, and cosmetics. It is widely used in automotive sectors as a fuel and lubricant additive due to high volume demand.

KPL, originally founded in 1989 to manufacture caustic soda, began as a backward integration for Kothari Sugars and Chemicals Ltd’s (KSCL) nitro chloro benzene (NCB) business. The chlor-alkali unit in Karaikal, Puducherry, was later sold to Chemplast Sanmar Ltd, and KPL operated primarily as a shell company until its merger with Primetra Technologies Private Ltd (PTPL) on April 1, 2006. Following the merger, PIB production became KPL’s main business focus, according to a note by rating agency ICRA.