ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Sound Base for Expansion

Sound Base for Expansion Hansavivek INDIAN PETROCHEMICALS CORPORATION (IPCL) has been issued 'letters of intent' for annual manufacture of 2,500 tonnes of, di-ethylene glycol, 250 tonnes of tri-ethylene glycol,.5,000 tonnes of petroleum resins and 71,000 tonnes of various solvents. Its process licence agreement with CdF Chimie of France for the petroleum resins project has also been approved by the Central government and work is in progress. The company has completed the power plant project and will commence trial runs shortly. It has also received industrial licences for production of acrylates, vinyl chloride and polyvinyl chloride and for increased production of DMT. The acrylates project for manufacture of four acrylates has made considerable progress. Civil construction work has begun on the DMT expansion project. The company has been assigned a number of new schemes for implementation under the Sixth Plan (1980-85). These include expansion of the linear alkyl benzene plant (Rs 5 crore), naphtha prefractiona- tion (Rs 2.5 crore), kerosene prefractio- nation (Rs 5 crore) and some other projects (Rs 10 crore). Besides, a provision of Rs 5 crore, has been made in the plan for science and technology programme. The company has submitted project proposals in respect of these schemes as also of several others. During 1980-81, company's production of major products in tonnes was as given below with that of the previous year in brackets: xylene 34,122 (36,609), di-methyl terephthalate 23,136 (27,939), low density polyethylene 59,458 (42,831), polypropylene 16,697 (13,425), polybutadiene rubber 6,465 (8,717), benzene 11,970 (10,223), ethylene glycol 8,442 (6,853), acrylonitrile 10,410 (3,724), linear alkyl benzene 17,400 (13,015) and acrylic fibre 8,047 (3,639). Sales expanded from previous year's Rs 144.54 crore to Rs 241.14 crore and yielded a gross profit of Rs 60.39 crore against Rs 32.12 crore, reflecting a useful increase in margins. Net profit was Rs 33.89 crore (Rs 4.56 crore). No dividend has been recommended, as the profit is proposed to be utilised to meet capital expenditure including that on additional facilities for the existing plants. As at the year-end, reserves and surplus stood at Rs 5.62 crore against the paid-up capital of Rs 18.60 crore. The year 1980-81 was the first one when most of the plants of the olefins group could be operated without the constraints experienced earlier. The first major planned turn-around of naphtha cracker and all the related olefins, polymer and fibre units was carried out. Nevertheless, production of olefins has been maintained at a high level, In most cases, production increased substantially over previous years. Production of low density polyethylene and DMT could have been higher but for limitations on account of restraint on electrical power 'consumption and market demand. Production of polybutadiene rubber was reduced due to certain process problems in butadiene recovery and due to equip-

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