Manali Petrochemicals Expands with New Systems House in Gujarat, India

Manali Petrochemicals is investing in a new systems house in Gujarat, India, while also boosting its glycol production capacity at its existing facility in Chennai. The company is doubling its propylene glycol output, with the upgraded plant expected to be operational by late July.

During the recent PU Tech show, COO Shivaram Narayanan revealed that the Gujarat expansion involves establishing a systems house in Saykha, Bharuch district, with an annual production capacity of 30kT of formulated polyols. These products will cater to the automotive, footwear, and energy-efficient sectors.

Land acquisition for the greenfield project is complete, with construction set to begin by year-end. Commercial production is slated to start in early 2027.

According to a stock exchange filing, Manali will invest INR 1.3 billion ($15.2 million) in the Gujarat facility, which will supply northern, western, and eastern Indian markets, as well as support exports. High transportation costs from its Chennai plant had previously reduced competitiveness in these regions.

Narayanan noted that the flexible slabstock polyol (FSP) segment has become unprofitable due to cheap imports flooding the domestic market. As India’s sole FSP producer, Manali petitioned for anti-dumping measures, prompting the Directorate General of Trade Remedies (DGTR) to investigate suppliers from China and Thailand. Definitive duties have since been reinstated, with inspections ongoing.

Simultaneously, Manali is expanding its glycol capacity in Chennai, aiming to become India’s leading producer of propylene oxide, propylene glycol, and polyols by 2030. The propylene glycol capacity will double from 22 kT/year to 44 kT/year, with the additional output available by Q1 of FY2025-26. This expansion will serve the food, beverage, and pharmaceutical industries.

Source: Utech