Chennai-based Tamilnadu Petroproducts Ltd (TPL) will be embarking on an expansion-cum-modernisation programme at an investment of ₹435 crore.

Under the proposed expansion, the three-decade-old company, which is a manufacturer of linear alkyl benzene (LAB), heavy chemicals and propylene oxide, will undertake a capacity augmentation of its LAB division, revamp of caustic soda facilities and setting up of a propylene recovery unit (PRU).

A significant part of the expansion will be funded via internal resources, and the remaining through other sources.

“TPL will be the first Indian non-refining company in the private sector to build a propylene recovery unit plant. It shows our commitment to bring manufacturing efficiencies by continuous upgrading and introducing state-of-art technology solutions. It is in line with our group philosophy to maximise margins by introducing process efficiency and value additions,” said Ashwin Muthiah, Vice-Chairman, TPL, and Founding Chairman, AM International (TPL’s parent company).

The LAB capacity would be increased from 1,20,000 tpa (tonnes per annum) to 1,45,000 tpa at an estimated cost of about ₹240 crore. The project would be commissioned in about 24 months, after regulatory approvals, according to a statement.

For the heavy chemicals division (HCD), the company will invest ₹165 crore to modernise the caustic soda and chlorine unit by replacing the mono-polar membrane technology with a more advanced bipolar membrane technology.

On completion, in about 18 months after approvals, the production capacity for caustic soda will go up to 250 tonnes per day from the current 150 tonnes. At the present price levels, additional revenue of about 70 per cent is expected from the project, with improved value-addition.

The propylene recovery unit (PRU), the first-of-its-kind in India by a private sector player in the non-refining sector, will be established at an outlay of about ₹30 crore. Propylene, a bulk chemical intermediate, is the raw material for propylene oxide and is derived from LPG. The company is in advanced talks with various domestic and international vendors for LPG for this project.

The project, the technology for which has been developed in-house by the company’s R&D team of engineers and environmental scientists, will be implemented in about 12-18 months, post-approvals.

“The projects would make the country self-reliant in this segment by meeting the domestic demand. It is our way of ensuring that our manufacturing prowess supports the ‘Vocal for Local’ mission,” said M Ravi, Group CEO, Petrochemicals, AM International.

Muthiah said the projects would meet the best environmental, health and safety standards.

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