Haldia Petrochemicals Limited (HPL) has formed an in-house team to consider possibility of setting up a second naphtha cracker unit at Haldia. The encouraging financial results of the company could support this decision to enhance capacity. HPL expects to achieve a net profit of Rs 750 crore in the current fiscal and a profit before tax of Rs 900-950 crore. An IPO is also being planned by HPL in the first quarter of 2005-06.
HPL plans to double present capacity of 5.2 lakh tpa. The scheduled completion of the Rs 700-crore planned cracker revamp, will not only lead to production of 6.7 lakh tons of ethylene, but will also make the second cracker a distinct possibility. Upon successful completion of the revamp by October, the management could start exploring the possibility of setting up another naphtha cracker unit.
The second unit will need an investment of Rs 2,000 crore. If the associated plants for HDPE, LDPE as well as PP are also set up, then the total investments will shoot up to Rs 7,000 crore.