India’s Haldia Petrochemicals invests Rs30bn in phenol/acetone plant

MUMBAI (CIS)–India’s Haldia Petrochemicals Ltd (HPL) plans to invest rupees (Rs) 30bn ($360m) to set up a new phenol/acetone plant at its complex in the West Bengal state.

The plant, which will be able to produce 300,000 tonnes/year of phenol and 185,000 tonnes/year of acetone, is expected to be completed by the first quarter of calendar year 2026, the company said in a statement on 13 October.

Once operational, the phenol and acetone plants will also help develop the downstream chemical industry in the area, HPL said.

The project will be financed through a mix of debt and equity, it added.

“HPL is setting up the first on-purpose propylene plant in India based on olefin conversion technology and the largest phenol plant in India, becoming India’s first integrated player in the phenolics chain,” it said.

The olefins conversion unit will have a propylene capacity of 117,000 tonnes/year, based on HPL’s year-to-March 2023 annual report released on 5 September.

Propylene is one of the raw materials for phenol production.

Once commissioned, the new plants will help HPL become a leader in the niche specialty chemicals segment, the company said.

The company expects to see its chemicals business portfolio increase by Rs50bn once the plants are commissioned, HPL chief executive officer Navanit Narayan said in the statement.

“The demand for petrochemicals is growing due to a large population base [of India], favourable demographics, increasing economic growth, urbanisation, and its positive impact on automobile production, construction, infrastructure, agrochemicals and pharmaceuticals,” it added.

($1 = Rs83.23)