Chemtech

Manali Petro sees strong growth in PU markets driving polyol sales

Manali, Chennai: Manali Petrochemicals Ltd. (MPL) has achieved a higher turnover of 496.72-crores in FY11, an increase of 18 per cent over the previous year, aided by improved production and sales and better price realisations. During FY11, the company produced 32,149-tonnes of propylene oxide (PO), 19,224-tonnes of propylene glycol (PG) and 21,461-tonnes of polyether polyols, according to the company's annual report, which was recently released.

During FY11, the company also enhanced the capacities of its PO, PG and polyether polyols plants to 36,000-tpa, 20,000-tpa and 50,000-tpa respectively. The debottlenecked PG plants and the retrofitted PO plant were optimized and the production was stepped up and streamlined. The new polyols plant train with a capacity of 17,000-tpa of polyol, was successfully commissioned in February 2011.

The operation of the plant is being optimized. With these investments, the production capacities of the PO, PG and polyol plants have gone up to 36,000-tpa, 20,000-tpa and 50,000-tpa respectively. During FY11, the biomass fired 4.2-MW co-generation captive power plant functioned to its best ability, alleviating problems posed by the restrictions on power supply. Steps are being taken to install an import terminal at Ennore Port to import PO in bulk for making polyols and PG. Though the derivative plants of PG and polyols currently have the capability to process 60,000-tonnes of PO annually, the company can produce only 36,000-tonnes due to constraints in PO availability.

With multinational foam suppliers to auto companies blending their own formulations, this has thrown open the possibilities for MPL to sell base polyols directly to them, without the need for completing the system with other chemicals / isocyanates. "Since our market share is less than 50 per cent in all the segments, we sold all the quantities that we produced, comfortably. Scope exists for further improvement in market share with improved production capacities," the report added.

The unsaturated polyester industry and food/flavour industries are also growing in excess of 20 per cent, and thus there is scope for expanding the glycol facilities further, the company said.

Besides, the company has also not ruled-out the prospect of further expanding its glycol facilities on account of phenomenal growth the polyurethane industry is exhibiting in India.