Page 138 - CW E-Magazine (10-10-2023)

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GROWTH CHALLENGES

Manali Petrochemicals fl ag rising input costs and

huge infl ux of imports

Rising input costs and dampened and profi tability in FY23 was lower supply of petrochemicals is expected to
demand due to surplus availability of than the previous two years, which hit a record 218 million tonnes in 2023.
imported petrochemical products are were historically the best years. “Our “With the Chinese economy facing un-
challenges to the business, according to margins are continuously impacted by certainty, Indian markets have become
a senior offi cial of Manali Petrochemi- escalating global commodity prices an easy target for exporters,” he added.
cals Ltd. (MPL). triggered by persistent geopolitical
complexities,” he said. He, however, noted that the company
“Imports have reached pre-pan- is confi dent of sailing through the chal-
demic levels, and product prices have Chennai-based MPL is into manu- lenging conditions through operational
nosedived compared to the previous facture of propylene glycol, poly- efficiency, product innovations, and
two years,” said Mr. Ashwin Muthiah, ether polyol and related substances. ESG-driven manufacturing strategy.
Chairman, MPL, adding that dampened In the previous fi scal, MPL posted a Mr. Muthiah stated that as pollution con-
demand for products, coupled with standalone net profi t of Rs. 51-crore trol and other environmental regulations
larger foreign supplies, have created as against Rs. 377-crore in FY22. become stringent in India, chemical
a considerable gap in demand-supply. Revenue from operations also fell to manufacturers are looking to diversify
He was addressing the shareholders at Rs. 1,033-crore (Rs. 1,444-crore) during their production capabilities into other
the company’s 37th Annual General the comparable periods. segments, mainly ‘speciality’. The spe-
Meeting. cialty chemicals industry in India is pro-
Global oversupply jected to grow at a CAGR of more than
Mr. Muthiah said MPL’s overall sales Mr. Muthiah said the global over- 12 percent from 2020 to 2025.

GROWTH MARKET

British International Investment eyes $1-bn investment

in Indian clean energy projects

The UK Government’s develop- such as renewable energy, electric nesses in emerging economies across
ment fi nance institution, British Inter- mobility and sustainable agriculture. 65 countries.
national Investment (BII), plans to
invest about $1-bn in Indian climate- Its’ current portfolio in India is On total portfolio investment, the
related projects by 2026, drawn to the valued at $2.2-bn with investment in company got 5% in annual return over a
country’s expanding renewable energy over 290 businesses. Last year, BII rolling 7-year period, he said, declining
capacity. agreed to invest up to $250-mn in to give detail on returns on Indian
automaker Mahindra and Mahindra investments. He, however, said the
“We are evaluating exciting busi- Ltd‘s new electric vehicle unit. Indian economy was going through
nesses in sectors such as bio-fuels, cir- a “good phase” compared with BII’s
cular economy ... as part of the vision “India has produced the best returns investments in some African nations,
for the 2030 roadmap agreed between of any geography we have invested in,” where high debt, infl ation and weakening
India and the UK,” Mr. Nick O’Dono- said Mr. O’Donohoe, citing buoyant currencies had impacted returns.
hoe, CEO of BII, said in an interview stock markets and a stable political
with news agency, Reuters. environment in the country. The com- BII wants to invest in new entrepre-
pany has about 8.2 billion pounds neurs and companies that are struggling
In India, BII invested over $300-mn ($9.98 billion) worth of assets through to raise funds for their emission-cutting
in climate fi nance last year in sectors its investments in around 1,500 busi- projects, he said.

138 Chemical Weekly October 10, 2023

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