In an effort to improve its margins and reduce costs, Haldia Petrochemicals Ltd (HPL) plans to develop downstream chemicals business opportunities expected at the proposed chemical hub at Nayachar. To be built at an initial investment of Rs 600 crore, this will also help create a robust downstream chemicals industry in the state of West Bengal.
Consultants will be appointed to carry out a detailed feasibility study, expected to be complete in six months, on a new product line. This study is expected to find chemicals with potential robust consumption at the new chemical hub. HPL is expected to manufacture products that offer higher margins like styrene and 1-butene. Currently, HPL manufactures polypropylene, polyethylene, benzene and butadiene.
The units established at the Nayachar hub will buy the intermediate products like styrene and 1-butene. HPL expects the new downstream chemicals business to ensure higher margins, and expects to make substantial savings by using waste gas for power generation. Currently, HPL uses 65 to 70MW of power by burning costly naphtha, which has seen a three-fold rises in prices in the past three years.