Incorporated in Sep.'88, the company Maharashtra Polybutenes Ltd., earlier known as Herdillia Polymers was co-promoted by Herdillia Chemicals and Maharashtra Petrochemicals. HPL set up a plant to manufacture 5000 tpa of polybutenes at Thane, Maharashtra, in technical collaboration with FINA Technology, US. The plant commenced commercial production in Sep.'93 against Jun.'92 as envisaged. MPL offered equity shares on a rights basis (9:10) to meet the cost overrun in the polybutene project and to part-finance its long-term working capital requirements. Polybutenes are very versatile products which find application in the manufacture of lubricating oil additives, cable jelly (for jelly-filled cables), impregnants (for power cables), two-stroke engine oils, etc. HPL is on the chopping block because of continuous losses from the very first year itself. The main problem the company is facing apart from the cost overrun is the stabilisation of quality. Production is below the optimum level on account of low sales. During the year 1999-2000, the accumulated losses amounting to Rs.1529.42 lacs were adjusted against the revaluation reserves and the revised rehabilitation package for the company's revival as per the rehabilitation proposal being submitted to the operating agency appointed by BIFR. During 2000-01,the capacity utilisation was 95.55% which is highest ever in the history of the company's operation. The income from Conversion Charges during the year was Rs.10.18 crores (more than 65% growth over the previous year)as against Rs.6.16 crores in the previous year. The company continues to be under the purview of BIFR.