Haldia Petrochemicals (HPL) will invest Rs
3,000 crore (USD 360 million) to set up new chemical plants in West Bengal.
This includes the first on-purpose propylene plant and a phenol unit which will
come up at its existing manufacturing facility at Haldia.
West Bengal, India: A new
propylene plant and phenol unit will be deliberately established at the current
manufacturing site in Haldia. Anticipated completion for both projects is set
for the first quarter of 2026. The phenol plant is projected to yield 300 kilo
tonnes per annum of phenol along with 185 KTPA of acetone.
Upon the inauguration of
these facilities, the chemical business portfolio is poised to surge by an
extra Rs 5,000 crore (USD 600 million). This potential investment could mark
the chemical sector's most significant in West Bengal over the past two
decades. Additionally, it has spurred the growth of ancillary units and is
foreseen to create job opportunities in the downstream chemical industry. In
the preceding financial year, the company garnered a revenue of Rs 999 crore
(USD 120 million) from specialty chemicals.
According to the company’s whole-time
director, A
combination of debt and equity will fund the projects, with HPL engaging in
discussions with banks and financial institutions to secure loans. The company
plans to internally generate the equity component through internal accruals.
Given the project's magnitude and the envisaged investment, it stands as HPL's
most significant brownfield expansion since Project Supermax in 2010, which
augmented the company's polymer-making capacity by 30 percent.
According to TechSci Research,
Phenol, also
known as carbolic acid, is a versatile compound with applications spanning
industries such as pharmaceuticals, plastics, textiles, and agriculture. Its
chemical structure, a hydroxyl group bonded to a benzene ring, lends itself to
diverse applications, making phenol a cornerstone in the synthesis of various
chemicals. In India, the demand for phenol has been steadily rising,
mirroring the country's economic expansion. Phenol plays a pivotal role in the
production of key chemicals like acetone, bisphenol A, and caprolactam, all of
which have wide-ranging applications in the manufacturing sector.
As India continues its
trajectory of industrialization, the demand for phenol is set to soar.
Industries such as automotive, construction, and electronics rely heavily on
phenol-derived products, and their growth directly influences phenol
consumption. The proposed phenol plant with a production capacity of 300
kilo tonnes per annum is a clear indicator of the expanding chemical industry
in India. This growth is not confined to phenol alone but extends to the entire
downstream chemical sector.
The ripple effect of such
projects includes the creation of ancillary units and, consequently, employment
opportunities. The downstream chemical industry is expected to witness a surge
in employment, contributing to local and regional economic development. Research
and development efforts are likely to explore new applications for phenol,
further diversifying its use. This could include innovations in areas such as
bioplastics, pharmaceuticals, and specialty chemicals.
While the future of
phenol in India appears promising, challenges must be addressed. These include
environmental concerns related to phenol production and the need for sustainable
practices. Additionally, market dynamics and global economic factors may impact
the pricing and availability of phenol. Phenol's journey in India is marked by growth,
innovation, and strategic investments. The upcoming projects signify a
commitment to the country's chemical industry and herald a new era of
possibilities. As India positions itself as a global player in the chemical
sector, phenol stands as a key player in this transformative journey, shaping
the nation's industrial landscape for years to come.