Tamilnadu Petroproducts to execute projects worth over Rs 400 crore

Tamilnadu Petroproducts' projects include increasing Linear Alkyl Benzene (LAB) capacity from 120,000 TPA to 145,000 TPA at an estimated cost of about Rs 240 crore

Tamilnadu Petroproducts Ltd, a member of the petrochemicals arm of AM International Group, has received the board's approval for various projects, which would attract over Rs 400 crore.

The projects include increasing Linear Alkyl Benzene (LAB) capacity from 120,000 TPA to 145,000 TPA at an estimated cost of about Rs 240 crore. The project would be commissioned in about 24 months, post regulatory approvals.

The caustic soda unit of the heavy chemical division (HCD) plant is proposed to be revamped at an estimated cost of Rs 165 crore by replacing the mono-polar membrane technology with a more advanced world-class bipolar membrane technology.

The per day capacity is expected to be increased from 150 TPD to 250 TPD and would be completed in about 18 months after statutory clearances. At present, the average capacity utilisation of the HCD plant is about 90 per cent.

Upon completion of the exercise, the production capacity for caustic soda will go up to 250 TPD from the current 150 TPD. At the current price levels, addition of revenue of about 70% is expected from the project, with improved/higher value addition.

The setting up of the Propylene Recovery Unit (PRU), first of its kind in India by a private sector player in the non-refining sector, would involve an outlay of about Rs. 30 crore.

This will be set up in the same PO manufacturing comptex, saving significant trucking and energy costs. Propylene, a bulk chemical intermediate, is the raw material for propylene oxide and is derived from LPG.

TPL is in advanced talks with various domestic and international vendors for LPG for this project. The project, technology of which has been developed in-house by the company's R&D team of engineers and environmental scientists, will be implemented in about 12-18 months, post approvals.

In adherence to the group philosophy of optimum leverage, a significant part of the expansion will be funded via internal resources and the remaining through other sources, said Ashwin Muthiah, vice-chairman, TPL & Founding Chairman, AM International,

He added, "TPL witt be the first Indian non-refining company in the private sector to build a propylene recovery unit plant. lt shows our commitment to bringing manufacturing efficiencies by continuous upgradation and introducing state-of-art technology solutions." lt is in line with our group philosophy to maximise margins by introducing process efficiency and value additions, he said

The aforesaid projects are aimed at improving the share of TPL in the domestic market for LAB and caustic soda, demand for which is expected to grow by about 4% per annum in the coming years, said the company.