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

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Moonbeam Industries

EPW Research Foundation Hindustan Petroleum Corporation HINDUSTAN PETROLEUM CORPORATION (HPCL) is an integrated petroleum refining and marketing company with 20 per cent share both in refining and marketing petroleum products in India. The company owns and operates two refineries at Bombay and Vishakapatnam with capacities of 5.5 MMTPA and 4.5 MMTPA, respectively. This combined throughput represents about 20 per cent of the country's total refining capacity. It also has the largest lube refinery in India with a capacity to manufacture 2,25,000TPA of lube base oils, This is being expanded 1,10,000 TPA. It also owns and operates a large product supply and distribution network throughout the country. HPCL has a well established countrywide marketing network including zonal and regional offices, terminals, depots, LPG bottling plants, aviation service stations', retail outlets, and product pipelines. The company has set up an international division for the export of lubes, software and speciality products. The company has entered into collaborative research programmes with reputed research institutes. HPCL proposes the expansion of crude refining capacity of its Visakh Refinery from 4.5 MTPA to 7.5 MTPA. The envisaged facilities are new crude distillation unit, new vacuum distillation unit, new visbreaker unit, augmentation of LPG treatment, effluent treatment, sulphur recovery, utilities and power generation plants. The capital cost of the proposed Visakh Refinery Expansion Project is estimated to be at Rs 870.38 crore. Commercial production of the project is to begin by July 1998. The project on lube base stock augmentation facilities at Bombay Refinery envisages setting up of facilities to produce additional 1,10,000 tonnes per annum of lube base stock including 50,000 tonnes per annum of bright stock. The project would result in the optimal utilisation of imported crude processing capacity of refinery by maximising the production of high value Iube products to their full potential. The project envisages the setting up of new propane deasphalting unit, new solvent extraction unit based on N-methyl pyrolidone (NMP) solvent, new hydrofiner and hydrogen units, propane dewaxing unit modifications, and additional power generation and off site facilities. The estimated cost of the project is Rs 232.41 crore. Also proposed is the laying of a multiproduct pipeline between Visakh and Vijayawada with an intermediate booster station cum tap-off terminal at Rajahmundry, for transportation of white oil products like high speed diesel oil, motor spirit, superior kerosene oil and aviation turbine fuel. Storage facilities with tanks of 12,000 tonnes and 70,000 tonnes are to be provided at Rajahmundry and Vijaywada. This project is to be implemented in two phases at an estimated cost of Rs 467.45 crore. Another LPG import facilities with receipt, storage loading and transportation facilities along with other facilities are to be constructed. HPCL is putting the LPG import facilities at Mangalore to handle 6,00,000 tonnes per annum of imported LPG. The project would cost Rs 1,62.74 crore. The company has about 140 other projects in various stages of implementation. The company to finance these projects is entering the capital market on February 13 with a public issue of 1,73,50,000 equity shares of Rs 10 each along with detachable tradable warrants for cast at a premium aggregating Rs 608.925 crore comprising of 1,35.45,000 equity shares of Rs 10 each at a premium of Rs 330 per share aggregating Rs 460.530 crore and 38,05,000equily shares of Rs 10 each at a premium of Rs 380 per share on firm allotment basis aggregating Rs 148.394 crore: The issue is to be lead managed by SBI Capital Markets, ICICI Securities and Finance Company, DSP Financial Consultants and JM Financial and Investment Consultancy Services.

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