MUMBAI (ICIS)--India’s Tamilnadu Petroproducts Ltd (TPL) plans to increase the capacity of its linear alkyl benzene (LAB) and caustic soda plants and set up a new propylene recovery unit (PRU) at its complex at Manali in southern Tamil Nadu state as part its expansion plans, it said.
The expansion project is estimated to cost around Indian Rupees (Rs) 4.35bn ($59.2m), it said in a filing to the Bombay Stock Exchange on 30 March.
The company plans to increase the capacity at its LAB plant to 145,000 tonnes/year from 120,000 tonnes/year currently.
The project will cost Rs2.4bn and will be commissioned within 24 months of receiving all the regulatory approvals, it said.
TPL also plans to invest Rs1.65bn to modernise its caustic soda unit which will increase the plant’s capacity from the current 150 tonnes/day to 250 tonnes/day.
The expanded capacity is expected to come online within 18 months of receiving the statutory clearances, TPL said.
TPL is also setting up a new 21,000 tonnes/year PRU unit at an estimated cost of Rs 300m. This plant will cater to the feedstock requirements of its 16,000 tonnes/year propylene oxide (PO) plant.
“The surplus production would be sold in the domestic or global market based on market conditions,” it said.
The company plans to bring the new PRU unit online within 12-18 months of receiving regulatory approvals.
The expanded plants will help TPL meet the increasing demand for LAB and caustic soda in the domestic market which is expected to grow by about 4% annually, it said in its statement.
The company plans to fund its expansion projects through internal accruals and loans, it added.