Date:03/04/2007 URL: http://www.thehindubusinessline.com/2007/04/03/stories/2007040303960400.htm

Back Haldia Petro finalising plans on second complex

Pratim Ranjan Bose

Haldia April 2 Haldia Petrochemicals Ltd will finalise its plans on the proposed second naphtha based petrochem complex this year.

The new plant, which will enhance the company's product range, will be located within the existing plant premises in Haldia.

"We are still working on the proposed investment in a new petrochemicals plant. We are extremely hopeful of approaching the board with a detailed proposal this year," the HPL Managing Director, Mr Swapan Bhowmik, told media persons here today.

"We are studying various models. The aim is to enhance the product range of the company," he said.

HPL is currently commissioning a Rs 672 crore augmentation project to enhance the naphtha cracker capacity from 520 kilo tonne per annum to 670 KTA. The project will be fully commissioned in the fourth quarter of this fiscal.

According to him, the company is expected to near double its net profit from Rs 300 crore in 2005-06 to Rs 584 crore in 2006-07. Turnover has increased from Rs. 6641 crore to Rs. 8300 crore. The debt-equity stands at 1.15.

Producing motor spirt

Meanwhile, in its bid to generate higher value, HPL has forayed into naphtha based petrol (motor spirit) production. The company currently produces roughly 2.4 lakh tonne of high octane Euro-III motor spirit a year sourced by almost all the oil marketing companies except IndianOil.

Overall MS generates a revenue of over Rs 700 crore annually which is close to nine per cent of HPL's turnover.

"We may be one of the few petrochemicals companies worldwide who has forayed into MS production and are fully prepared to produce Euro-IV petrol as soon its use becomes mandatory in 2008," said a company official.