IOC’s fledgling petchem business boosts sales

28 May 2007 15:27  [Source: ICIS news]

NEW DELHI (ICIS news)--Indian Oil Corporation said on Monday that its emerging petrochemicals business, which grew 80% to Indian Rupees (Rs) 18bn ($44.4m / €33.0m) in the fiscal ended 31 March 2007 from a year ago, helped boost sales.

 

IOC’s operating profit was boosted by higher sales in linear alkyl benzene (LAB) and purified terephthalic acid (PTA) segments, a company official said. However, specific numbers for petrochemicals were not available.

 

The aromatics complex at Panipat, Haryana sold its entire PTA production of 183,000 tonnes in the domestic market within the first six months of commissioning in June 2006, he said.

 

IOC expects sales to grow robustly in 2007-2008, which would be the first full year of operations for the aromatics complex with PTA capacity of 550,000 tonnes/year, paraxylene capacity of 360,000 tonnes/year and benzene capacity of 200,000 tonnes/year.

 

“If India and Pakistan agree on export of petrochemicals, setting up infrastructure for rail transportation would take about two years. If the political will to improve border trade is exhibited, then IOC could start exporting PTA in small volumes,” the official said.

 

IOC has a 38% share in the domestic LAB market, and exported 25% of 120,000 tonnes output to Indonesia, Turkey, Thailand, Vietnam, Norway and Oman.

 

IOC’s net sales rose nearly 21% to Rs1993.96bn from a year ago. Its net profit rose 52.6% to Rs74.99bn aided by investment-related other income.

 

($1 = Rs 40.52 / €1 = Rs 54.50)

By: Naresh Minocha
+65 6780 4359

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