Chennai, India – Manali Petrochemicals is investing in new polyester polyols and propylene glycol projects on a greenfield site in the west of India. The aim is to cater to local market requirements.
“Initially, we will target 30kT/year of polyols with an investment of over INR1.3bn [$15.4m], projecting an internal rate of return of 30% with the five-year payback,” R Chandrasekar, the company’s MD, told a recent investors meeting.
The company is expanding its polyester polyol capacity, with one 4.15kT/year plant already complete, and another under construction. “We'll be focusing on construction and appliances and elastomers specifically with polyester polyol coupled with the captive consumption requirement,” Chandrasekar said.
The company is also investing in a propylene glycol plant. This will have an initial capacity of 32kT/year. The INR940m investment has a 50:50 debt:equity ratio, and expected return rate of 20.7%.
The company has been in business for three decades, and has two manufacturing facilities in Chennai. These predominantly produce propylene oxide, propylene glycol and its monomethyl ether, polyols, and other derivatives.
