India’s chlor-alkali major SRAACL plans chloromethanes unit

26 February 2008 17:30  [Source: ICIS news]

NEW DELHI (ICIS news)--India’s Sree Rayalaseema Alkalies and Allied Chemicals Limited (SRAACL) is planning to set up a 41,500 tonnes/year chloromethanes unit downstream to its chlor-alkali plant at its chemical complex at Gondiparla in the Kurnool district of Andhra Pradesh State.

ICRA Limited, an associate of Moody’s Investors Service, said on Tuesday that the proposed unit costing Indian Rupees (Rs) 895m ($22m) was expected to go on stream in financial year 2011-12.

ICRA said the company would invest Rs3.8bn on different projects during 2009-10. This includes a hydrochloric acid plant, a caustic soda fusion unit and 25 MW captive power expansion.

The company operates chlor-alkali plants with a capacity to produce 123,950 tonnes of caustic soda and 66,329 tonnes of chlorine.

ICRA said it expected a decline in the company’s operating margins from the combined sales of products from the chlor-alkali facilities due to significant capacity expansion in India the pressure from imports from the Middle-East and China.

While domestic demand for caustic soda should remain buoyant over the medium term, the Indian chlor-alkali plants may have to cut back capacity utilization to contain chlorine production.

 SRAACL also produces potassium carbonate, barium sulphate, soaps and detergents at its chemicals complex. It also operates a facility for the production of hydrogenated castor oil and derivatives such as stearic acid, ricenolic acid and glycerine.

It operates a 37.8 MW plant at Bellary in Karnataka State that supplies electricity to the State grid.

($1 = Rs39.9)

By: Naresh Minocha
+65 6780 4359

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