Mangalore Refinery and Petrochemicals Limited (MRPL) has initiated its downward integration by amalgamation with ONGC Mangalore Petrochemicals Limited (OMPL) - a synergy which will provide higher returns for stakeholders.
“A scheme of amalgamation of OMPL with the company has been proposed for approval of various regulatory authorities. The synergy between OMPL and MRPL will provide higher returns for stakeholders, adding further value to the product streams of your refinery and flexibility to increase its GRM, optimal utilisation of the plants of MRPL,” MRPL Chairman D K Saraff said.
Addressing the 27th Annual General Meeting of the company in Mangaluru on Sunday, he said OMPL had recently commissioned a state-of-the-art Aromatic Complex with 914 KTPA capacity of Para-Xylene and 283 KPTA capacity of Benzene adjacent to the refinery.
The amalgamation will ensure optimal utilisation of resources which will lead to improvement in overall working culture and environment, Saraff said. On the industry, he said with the progress made on the Iran nuclear deal framework, the company is expected to benefit from import of Iran crude.
“There are hopes that lower crude oil prices would lead to lower under recoveries for OMCs and presents an opportunity for the company to foray into retail markets,” he said. The Polypropylene Unit built with an investment of around Rs 1,800 crore has commenced commercial production,Saraff said.
“In South India, the annual Polypropylene demand is about 500,000 tonnes and MRPL’s Polypropylene Unit is the only producing unit which can meet the entire demand in this region,” he said.
The company has developed strategies and defined roadmaps in the short-term to meet the expectations of stakeholders and to insulate the company from hard-landing risks by increasing refinery profitability, Saraff said.
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