India’s Manali Petrochemicals gets environmental clearance for PG expansion

Priya Jestin


MUMBAI (ICIS)–India’s Manali Petrochemicals Ltd (MPL) has received environmental clearance to expand its propylene glycol (PG) capacity in the southern Tamil Nadu state to 70,000 tonnes/year.

The company operates two PG units in Chennai, each with a 10,000 tonne/year capacity, according to ICIS data.

The expansion will be carried out in two phases, with the first phase to be completed within 18 to 21 months of receipt of other regulatory approvals, MPL said in a statutory filing to the Bombay Stock Exchange (BSE) on 6 October.

MPL had announced the plan expand the plant’s capacity to 70,000 tonnes/year more than two years ago, with an investment of Indian rupees (Rs) 1.5bn ($18m).

MPL is the sole domestic producer of PG in India and caters to about 25% of domestic demand. with the remaining 75% requirement being met through imports.

The company expects to increase its share in the domestic markets once its new PG capacity becomes operational.

MPL is also setting up a pilot plant to produce polyols using carbon dioxide feedstock.

In September 2021, the company signed an agreement with UK-based Econic Technologies to set up the Rs30m pilot plant “to evaluate the technology to produce polyols using alternate feedstock,” MPL said in its annual report for fiscal year ending March 2022.

“Upon successful completion of the trials, which might take a couple of years to conclude, commercial production and scaling up would be planned,” MPL chairman Ashwin Muthiah said at the company’s annual general meeting on 28 September.

MPL also has two 18,000 tonne/year propylene oxide (PO) units; and four polyether polyols units with a combined capacity of 150,000 tonnes/year in Chennai, according to ICIS data.

($1 = Rs82.4)


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