Chennai (Tamil Nadu) [India], Sep 23 (ANI): Manali Petrochemicals said on Wednesday it has finalised plans to triple its annual production capacity for propylene glycol from 22,000 tonnes to 70,000 tonnes in two phases at an investment of Rs 150 crore.
The capacity is proposed to be expanded initially to 46,000 tonnes to be completed in 18 to 21 months and then by another 24,000 tonnes.
The entire project will be handled in-house by redesigning the current facilities to ensure cost-effectiveness and the most prudent budgetary practices.
On completion of the project, the company will meet a substantial part of the country's annual demand of about 100,000 tonnes of propylene glycol. Currently, a significant quantum is imported, which accounts for more than 75 per cent of the entire country's demand for propylene glycol.
The substitution of imports will save significant import bills and will also propel India towards self-sufficiency in propylene glycol production capability.
The primary focus of the project will be to supply to two sectors -- pharmaceutical and food. The growth in demand expected in future in these two sectors will help Manali Petrochemicals meet its sales target post the expansion.
The revamp will also ensure environment-friendly practices. The company said that expansion will be fully funded via internal resources without recourse to any external borrowing.
Manali Petrochemical is part of Singapore-headquartered two billion dollar AM International Group.
Chairman Ashwin Muthiah said the company's business strategy is aligned towards the country's dream of an Aatmanirbhar Bharat through the Make in India initiative.
"The investments are in tune with our credo of creating sustainable businesses which are future proof. We are building our plants through indigenous technology and investing in our home-grown R&D efforts with a clear focus on self-reliance and world-class domestic production," he said in a statement. (ANI)