The Rs 1,000-crore South Asian Petrochem (SAPL) proposes to mop up Rs 150 crore through preferential issue and foreign currency convertible debentures to fund its upcoming unit in Egypt and a new downstream petrochemical facility in West Bengal. The board of SAPL was to meet on November 8 to approve the proposal. The board will also consider issue of foreign currency convertible debentures upto US$20 mln.
Of this Rs 150 crore, SAPL plans to invest Rs 95 crore in its upcoming polyethylene terephthalate (PET) resin plant in Egypt. SAPL has a 70% stake in this Egyptian venture and the rest 30% is held by Egyptian Petrochemical Holding Company (ECHEM). The capacity of the Egyptian plant is 3.15 lakh tpa and is being set up at a capital outlay of US$100 million. Incidentally, at present, Egypt does not have any PET resin project even though the country consumes 60,000 tpa. The new plant will not only meet Egypt's requirement but will also export PET resin to the US and Europe. PET resin, which is witnessing a growing demand the world over, is used in packaging of mineral water, carbonated soft drinks, edible oils and pharmaceuticals.
The company is also mulling setting up a new petrochemical project in West Bengal. The balance Rs 55 crore will be deployed for this new plant.