Home / Knowledge / News / Textiles / Haldia Petro picks viability over investments
Haldia Petro picks viability over investments
08
Jul '11
After receiving the Government's notification waiving import duty on naphtha imported by Haldia Petrochemicals Ltd (HPL), the company has announced that it will not make future investments until the plant's viability is restored.

“The company has some immediate plans lined up, but investments will need to wait as restoration of the viability is our priority at the moment”, said Mr. Partha Bhattacharya, Managing Director of HPL.

Speaking about future investment plans of HPL, Mr. Bhattacharya said that the company plans to invest Rs. 2 billion for producing better-margin items having an IRR (internal rate of return) of 35 percent, and a payback period of two years.

HPL also intends to manufacture 12 to 13 grades of new polymer products at a total investment of Rs. 40 billion, he added.

He said while naphtha prices have gone up by 39 percent, the prices of final products have increased only 18 percent during the same period, thus creating a difference of 21 percent. This has affected the company's margins leading to substantial losses, he explained.

He further disclosed that the company made a loss of Rs. 2.47 billion in the April-June quarter of current fiscal year and the total loss in fiscal 2011-12 may cross the Rs. 10 billion mark. He, however, expected a better performance this month as prices of final products are increasing.

HPL may not be able to get funds from banks, if viability is not restored, he said and said that the viability has been severely affected due to the implementation of Supermax project to increase the plant's capacity, as both cost an time factors were overrun.

Initially, the project was estimated to cost Rs. 6.75 billion, but by the time it got completed, its cost turned out to be Rs. 12.30 billion, nearly double than what was thought at the beginning, he added.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search