Shares of Manali Petrochemicals has risen up to 3 per cent on Friday's opening trade based on the report of the expansion plan.
The company, part of Ashwin Muthiah's AM International Group, will set up a ₹150-crore propylene glycol (PG) unit to tap emerging business opportunities apart from reducing import dependence significantly. The move is in line with Prime Minister Narendra Modi's Atmanirbhar Bharat initiative.
The ₹685-crore company, the only manufacturer of PG in India, will ramp up its capacity by adding 48,000 tonnes over two phases to take the total capacity to 70,000 tonnes. The ₹150-crore project will be funded through internal funds without recourse to any external borrowing.
The expansion will take place in the area adjacent to its existing unit in Manali in Chennai. After securing all approvals, the first phase project, with a capacity of 24,000 tonnes, is expected to be completed in 18-21 months. In addition to some direct jobs, the project holds the potential to generate indirect employment too.
The second phase of expansion will be taken up after that. The entire expansion will be handled by the in-house engineering team, thereby ensuring cost-effectiveness and frugal budget.