Chembur Patalganga Pipelines

IG Petrochemicals IG PETROCHEMICALS (IGPL), a 100 per cent export-oriented unit promoted by Mysore Petro-Chemicals, is coming out with a public issue of 1,06,10,000 equity shares of Rs 10 each at par aggregating Rs 1,061 lakh. The issue will open on September 9. The company is setting up India's largest phthalic anhydride (PAN) plant at Taloja in Maharashtra. With a licensed capacity of 45,000 tpa IGPL will be the only international-scale PAN plant in the country. IGPL has a technical and financial collaboration with Lurgi GmbH of Germany. Under the agreement, apart from participating in the equity of IGPL, Lurgi will also assure the export of IGPL's production for five years at prevailing international prices through an associate company, Metallgesellschaft (Hong Kong), This five-year arrangement is to the extent of 100 per cent in the first year and 75 per cent in the next four years with an option to extend it by another five years. IGPL plant will use the process developed by Wacker Chemie GmbH and licensed by Lurgi for the production of PAN. This is a low energy process for which Lurgi will supply a special catalyst developed by Wacker Chemie and which guarantees the purity of PAN at 99.85 per cent and a yield of 106 to 107 per cent of the feedstock. Por the IGPL project Lurgi has supplied the plant and equipment ancf provided the know-how and basic engineering. The detailed engineering, project management including supervision of construction, is being provided at the site by Humphreys and Glasgow Consultants. Mysore Petro Chemicals (MPCL) a well-established profit-making company, with its plant at Raichur in Karnataka, is a leading producer of PAN in the country. In 1990, MPCL paid a dividend of 40 per cent. The company has a substantial share of the domestic .market in the various application industries such as PVC, paints, varnishes, coating inks, dye intermediates, etc. Since 1986, MPCL has made pioneering inroads into the exporl market too. The IGPL plant compares favourably with the average international plant size of 35,000 ipa. The size of the plant is important for economies of scale in the manufacture of PAN and has a direct bearing on its competitive strength in the world market. PAN is an essential industrial chemical used in the manufacture of plasticizers for PVC cables, leather cloth, flooring, tiles and footwear, etc It is also used for manufacturing alkyds in the paint industry and the production of certain varieties of dyes and pigments. The international demand for PAN is growing steadily and IGPL does not expect any difficulty in marketing its product. The project implementation is in full swing and installation is expected to be completed by December Allowing one month for commissioning and trial runs, commercial production is expected to commence in the first quarter of 1992. The total project cost is Rs 6,185 lakh with Rs 900 lakh as the promoters' contribution in the equity share capital. The present share issue is to meet a part of the project cost. Out of the issue, IGPL is making three preferential offers