To reduce its dependence on the refining and fuel retailing business, India's leading petroleum products retailer Hindustan Petroleum Corp. Ltd (HPCL) plans to enter the petrochemicals business. HPCL will mark its foray in this sector with the proposed acquisition of strategic stake in Andhra Petrochemicals Ltd (APL). Plans are still in the nascent stage. State-owned HPCL supplies naphtha to APL's petrochemical plant at Visakhapatnam, where HPCL has a 9.24 mln tpa capacity refinery.
Margins in the petrochemicals business range approximately at US$400-600 (Rs15,720-23,580) per ton, while margins in the refining business range at a level of US$5-15 per barrel.