Tamilnadu Petroproducts Ltd. (TPL) is preparing to commission the enhanced capacities of its Linear Alkyl Benzene (LAB) and Caustic Soda plants at a cost of ₹405 crore during FY26.
As per the proposal, LAB plant capacity is being augmented from 120 tonne per annum (TPA) to 145 TPA. Till March, TPL committed ₹164 crore towards design engineering and for ordering certain plant and machinery.
The capacity enhancement is estimated to be ₹240 crore and it is expected to go on stream by FY26, the city-based petrochemical manufacturer, said in the annual report.
Modernisation and expansion of Caustic Soda plant will cost TPL ₹165 crore. It will lead to increase in production volume from 150 TPD to 250 TPD. Till March, TPL has incurred ₹70 crore and the project is expected to go on stream by June 2025.
LAB is used extensively in detergent production and also as solvent and binder in specialty products, while caustic soda finds wide applications in textile, pulp & paper, aluminium and soaps & detergents.
“Despite fierce competition from overseas vendors, TPL remains the market leader in the domestic LAB business in South India. The increase in low price imports from Middle East & South East Asia is concerning,” the company said.
Asserting that the supply situation of LAB has changed significantly in India due to setting up of new facilities in the Middle East and cheaper imports from China, the company said it is focused on LAB application in other fields outside from the detergent sector. It is also developing a new sales channel.
“Even though demand for caustic soda is increasing steadily, this is causing prices to decline. By 2025, it appears that demand will surpass supply globally and there will be opportunities for accessing export market,” TPL said.
Regarding its two subsidiaries floated for specific purposes, TPL said due to change in circumstances and also opportunities opening up in India, it is being examined if other opportunities would be available for the subsidiaries.
Published – September 06, 2024 08:56 pm IST
