Page 20 - Plastics News March 2018

CompAny news

Gujarat Refinery to invest Rs 24k cr on projects till 2022

ndian Oil-owned Gujarat Refinery will invest about Rs decision to leapfrog to BS 6 compliance by April, 2020. The
I24,174 crore on new projects and expansions on the refinery is also the second-largest manufacturer of Linear
outskirts of Vadodara city in the next five years. These Alkyl Benzene (LAB) in the country, exporting to over 20
include capacity expansion to 18 MMTPA, at a cost of countries. The unit has a production capacity of 120 TMPTA
Rs 15,034 crore, oxo-alcohol petrochemical project of LAB. Considering the global and domestic supply and
(Rs 4,157 crore), Linear Alkyl Benzamine (LAB) revamp demand scenario, Indian Oil (IOC) board has approved
project (Rs 288 crore), BS-IV (Rs 1,315 crore) and BS-VI (Rs the 35 per cent capacity revamp of LAB from existing
3,380 crore), Gujarat Refinery executive director, Sudhir 120 TMPTA to 162 TMPTA at an estimated project cost of
Kumar said. According to him, these will generate direct Rs 288 crore.
employment of about 200 persons and indirect employment
to about 10,000 people at IOC is also entering Butyl Acrylate petrochemical speciality
the peak phase of project product market which has significant growth potential in
executions. "Alongside India. The IOC board has approved the oxo-alcohol project
improving the refinery's to produce Butyl Acrylate as a final product which has a
energy performance as lucrative internal rate of return (IRR) of 17.9 per cent at
well as its ability to meet an approved cost of Rs 4,157 crore.
growing regional demand
for finished products, the
expansion and reconfiguration project also aims to Prakash Industries to venture
equip the plant with greater flexibility to weather
future disruptions in the supply-demand scenario and into flexible plastic packaging
more closely integrate its production with downstream business
petrochemical units," he said.
"Alongside improving the refinery's energy performance rakash Industries has announced that it is underway
as well as its ability to meet growing regional demand Pto demerge the business into a separate company.
for finished products, the expansion and reconfiguration The demerger will give a new impetus to growth,
project also aims to equip the plant with greater flexibility
to weather future disruptions in the supply-demand creating apure play plastics focused entity. The
scenario and more closely integrate its production with company is also strategically venturing into flexible
downstream petrochemical units," he said. The company plastic packaging business.
is moving forward with the first phase of a long-planned The company will be manufacturing high performance
project to expand crude oil processing capacity of its
13.7 million-tonne per year (TPY) Koyali refinery at barrier films and laminates that find application
Vadodara. "It is already approved by the company's board in packaging of food,
in August, and the Rs 15,034-crore expansion will increase beverages, oil, personal
the refinery's total processing capacity by 4.3 million TPY care and pharmaceutical
to 18 million TPY by year-end 2022," he said. products. The flexible
Further, the company has already deposited an amount plas tic packaging
of Rs 100 crore with the Gujarat government about 15 business will form a part
days ago for acquisition of 85 acres of land from the of 'PVC pipes undertaking'
surrounding villages around its refinery, required for of the company and is being set up at the existing
two of the new projects, he added. Scheduled to be infrastructure at Kashipur, Uttarakhand. The project
commissioned between September 2019 and April 2020,
the two BS-IV and BS-VI projects are designed to bring the is being funded entirely through internal accruals and
refinery's fuel production in line with the government's production is likely to commence in May 2018.

Plastics News March 2018 20