New Managing Director of Haldia Petrochemicals (HPL) plans to try out the Bharat Coking Coal (BCCL) model of reviving a company. He thinks that there are more than a few commonalities between these two companies despite unrelated segments, as per the Hindu. Located at the port-town of Haldia in West Bengal, HPL operates as a naphtha-based petrochemical company, making polymers and energy chemicals, such as motor-spirit, liquefied petroleum gas, pyrolysis gasoline, carbon black feedstock/fuel oil, and industrial products. It also exports to Europe, West and Southeast Asia. It enjoys a second position among the petrochemical companies in India in terms of capacity, after Reliance. It is the eastern region's only petrochem plant, and markets pan-India with an eastern bias. However, HPL is saddled with high debts and low earnings from an expansion project completed last year that is eating away its margins. The Rs.2,000 crore debt is mounting, amid low debt service coverage. HPL has no accumulated losses, but it faced a problematic phase earlier but after a corporate debt restructuring (CDR) it has had uninterrupted profit-runs till 2007-08. Its loss-making phase began in 2008-09.
02-May-11 
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