India’s PIL starts work on Dahej elastomer plant

23 January 2009 16:12  [Source: ICIS news]

NEW DELHI (ICIS news)--India’s Pidilite Industries Ltd (PIL) has started engineering work on its elastomer plant after receiving a technology-process transfer from Polimeri Europa, the company said on Friday.

PIL said it started initial refurbishment work on the elastomer plant at Dahej, in Gujarat state, which consists of parts purchased from a dismantled Polimeri plant in France.

The company said it has so far invested rupees (Rs) 1.6bn ($32.5m) in the Rs6.2bn project, which will comprise a 35,000 tonne/year plant and 10-megawatt captive power unit.

The export-focused plant will have the capacity to produce 30,000 tonnes/year of poly chloro rubber and 1,000 tonnes/year each of chlorinated polyolefins, sulphur chlorinated polyolefins, butenedoils, 1,4 butanediols and tetrahydrofuran.

The plant is slated to come on stream in March 2010.

Regarding its 14 overseas subsidiaries, PIL said the current quarter would see it commission adhesives plants in Bangladesh and Egypt.

Most of the subsidiaries continued to incur losses due to an additional expenditure on business development initiatives, it said.

“The additional expenditure has still not resulted in a commensurate increase in sales and margins,” it said.

The company said its plan to reduce losses at its subsidiaries might not materialise in 2008-2009 due to costs related to the 50% depreciation of Brazil’s real currency, which has been affected by the recession in the US and a slowdown in construction in the Middle East and Thailand.

($1 = Rs49.20)

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By: Naresh Minocha
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