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 28th Mar 2017

India may impose duty on elastomeric filament yarn

The Government of India is likely to impose anti-dumping duty on...

Courtesy: Lee Cooper

Apparel/Garments | On 28th Mar 2017

CCI clears FLFL proposal to divest Lee Cooper

The Competition Commission (CCI) of India has approved the proposal...

Textiles | On 28th Mar 2017

Bardoli CEFC to benefit south Gujarat MSMEs

India’s first common engineering facility centre (CEFC) at Bardoli,...

Interviews View All

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Pranav Mishra
Huemn

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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
March 2017

March 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