The propylene glycol project of Manali Petrochemicals Ltd. (MPL) is running behind schedule due to holding up of regulatory clearances, said chairman Ashwin C. Muthiah.
Addressing shareholders at the 36th AGM via video-conferencing, Mr. Muthiah said that the first phase production of 32,000 tonnes per annum would commence in 18 to 21 months of receipt of all the required approvals for which applications had already been filed.
“The project has been delayed due to longer than usual time for processing of environmental clearances,” he said in the director’s report.
He also said that MPL had entered into a pact with Econic, U.K., for setting up a pilot plant at a cost of ₹3 crore to evaluate the technology for polyol manufacture with alternate feedstock.
Upon successful completion of the trials, which might take a couple of years to conclude, commercial production and scaling up would be planned, Mr. Muthiah said.
According to him, MPL has linked up several other initiatives with in-house technology to improve value addition and also expand the product portfolio, aimed to strengthen its market base in the years to come.
“Strategies for further expansion through brown field projects are being pursued in India and abroad. Surplus cash has been reserved for such growth plans,” he said.
While declaring an enhanced dividend of 50% for FY22 against 30% paid in FY21, Mr. Muthiah said though the Indian economic condition seemed to be relatively stable and resilient, the global cues did not provide any assurance for sustained performance in the near future. So, it had become essential to preserve the resources to meet exigencies and also for the growth plans.
