Increasing Polymers Production in India

In order to meet the growing demand for various grades of polymers used in wide array of applications, the Indian downstream petrochemical sector is all geared up for the commissioning of future installed capacity.

The latest report, "Chemicals and Petrochemicals Statistics at Glance: 2014", by Statistics and Monitoring Division of Department of Chemicals and Petrochemicals, Ministry of Chemicals and Fertilizers, Government of India highlights some key projects that will boost the polymer production in India in coming years.

ONGC Petro additions Limited (OPaL) is setting up a grass root mega Petrochemical project at Dahej, Gujarat in PCPIR/SEZ. The complex's main Dual Feed Cracker Unit has the capacity to produce 1.1 MTPA of ethylene, 400 KTPA of propylene. In addition, OPaL is setting up two 360 KTPA high density polyethylene (HDPE) / linear low density polyethylene (LLDPE) swing units, and HDPE and polypropylene (PP) units having a capacity of 340 KTPA each, downstream of the cracker. Production is expected to begin in 2015-16.

ONGC Mangalore Petrochemicals Ltd. (OMPL; Mangalore, India) is building an aromatics complex in the Mangalore special economic zone (SEZ). The complex is designed to produce 900 KTPA of paraxylene (PX) and 300 KTPA of Benzene and is expected to become operational in the fiscal year ending March 2015. MRPL is separately building a 450 KTPA PP plant at the Mangalore SEZ, which is also expected to be on – stream in the fiscal year ending March 2015.

Brahmaputra Cracker and Polymer Limited (BCPL) is setting up Ethylene Cracker Unit (Ethylene-220 KTPA & Propylene 60 KTPA), LLDPE/HDPE Swing Unit (LLDPE/HDPE-226 KTPA) and PP Unit of 60 KTPA at Petrochemical complex in Lepetkata, Dibrugarh in Assam. The project is expected to be commissioned by end of 2014-15.

GAIL is currently expanding petrochemicals capacity at its Pata, Uttar Pradesh, site by adding a 450,000 TPA LLDPE -HDPE swing plant. With this expansion, Gail would double its petrochemical capacity by the end of 2014-15. They are gearing up to spend about Rs. 2,600 crore to set up 110 KTPA poly butadiene rubber (PBR) plant in Gujarat. The project is targeted to be completed by the Q1 of FY17.

Bharat Petroleum Corporation Limited (BPCL) is expanding refining capacity at Kochi and, as part of those plans, is establishing a fluid catalytic cracker that will produce 500 KTPA of propylene to be consumed as feedstock by the proposed petrochemical complex. The petrochemical plant will produce niche petrochemicals such as acrylic acid, superabsorbent polymers (SAP), acrylates, and oxo alcohols. The BPCL petrochemical complex, when operational, would be the first plant in India to produce SAPs. The complex is expected to be on -stream in fiscal year 2017–18.

Indian Oil is building 1 MTPA acetic acid plant in a joint venture with British Petroleum (BP), near Indian Oil's refinery at Koyali, in Gujarat. The acetic acid facility is expected to become operational in 2017. Indian Oil is studying a number of projects based on refinery propylene at Koyali. Facilities would make products including acrylic acid, acrylic esters, and oxo alcohols. The acrylic acid plant would be designed to produce 100 KTPA, and the esters unit, producing mainly butyl acrylate, would have capacity for 160 KTPA.

RIL is significantly expanding its petrochemicals capacity with a range of projects. RIL is doubling PX capacity at Jamnagar and will become the world's second – largest producer of PX. Reliance is expected to commission a 142 KTPA SBR plant and a 40 KTPA polybutadiene rubber plant at Hazira, by the end of the current financial year. A 100 KTPA butyl rubber JV facility at Jamnagar with Sibur (Moscow) will be on-stream in 2015. The new plant will expand RIL's total BR capacity to 120 KTPA. RIL currently runs an 80 KTPA BR plant at Baroda, which is also in the Gujarat. Reliance is building a 1.5 MTPA ethylene plant at Jamnagar that is expected to start up in the second half of 2015-16.

Astral Poly Technik Ltd has acquired 76% stake in Resinova Chemie Ltd

Ahmedabad-based leading manufacturer of CPVC pipes and fittings Astral Poly Technik Ltd has acquired 76% stake in epoxy adhesives player Resinova Chemie Ltd for Rs  212.8 crore. The transaction values Resinova at an enterprise valuation of Rs. 289 crore.

One of the leading players in epoxy adhesives sector in India, Resinova is engaged in manufacturing and marketing of a highly diversified range of adhesives and sealants in chemistries based on epoxy adhesives, acrylics, UV cure, and cyanoacrylates, among others, Resinova's products have varied applications including automobile, construction, chemicals, engineering, industrial, furniture, sanitary and household sectors.

The acquisition will synergise with Astral's existing pipes and fittings businesses by deepening and widening its product offerings.

"Astral has established itself as a strong participant in the CPVC pipes and fittings sector and has gained recognition as a progressive player in the other related sectors. We see the adhesives business as the logical next step in building the Astral franchise. In high growth Indian adhesive market, the Resinova acquisition provides a strong platform which is highly complementary to Astral's strengths. We see tremendous growth opportunities and are excited with the prospects to create lasting value for our shareholders," said Sandeep Engineer, Managing Director of Astral Poly Technik Ltd.

Earlier in August 2014, Astral acquired 80% stake in the US based Seal It Services Ltd ('Seal-It'), which is engaged in manufacturing and selling a comprehensive range of sealants, adhesives, water proofing, cleaning products, tape & paints, and PVA, used mainly in construction sector.

Vijay Parikh, Managing Director of Resinova Chemi Ltd said, "This strategic move between two fast growing companies in synergistic sectors has exceptional potential to develop the adhesive market in India. Combined with Astral's presence in international markets, thrust will be on using technical strength and distribution network of both companies to harness the potential of this business.

IMI acquires Power Valve Specialist BOPP & Reuther

IMI announced the acquisition of B&R Holding (Bopp & Reuther) for an enterprise value of EUR 152.6M. Bopp & Reuther would now become part of IMI's Critical Engineering division. In the calendar year 2013, its revenues were EUR 90M and EBITDA was EUR 11.2M with an improved performance expected in 2014.

Bopp & Reuther, a global control valve producer, is based in Germany. It specialises in the design and manufacture of control and safety valves for the power generation industry. Its product portfolio includes both configured and semi-severe valve technologies and in recent years, it has extended its geographic reach and has a large customer base across China, India and Korea. The company is privately owned and, following the acquisition, Bernard Engel and the management team will remain with the business.

The transaction is expected to significantly enhance IMI's presence in the growing power sector, and increase exposure to emerging markets, in particular China and India. The acquisition would also extend the Critical Engineering division's existing product range to include complementary semi-severe valve products and technologies and provide access to new higher-margin aftermarket opportunities from Bopp & Reuther's existing installed base.

Adani Power buys Avantha's 600 MW Korba power plant

Couple of months after it acquired Lanco Infratech's 1200 MW power plant in Udupi, Gautam Adani-led Adani Power on Monday announced the acquisition of Korba West Power Co Ltd (KWPCL) that owns a 600 MW coal-based power plant at Korba in Chhattisgarh.

According to an official release, the company has "executed a binding term sheet for acquisition of 100 percent share of KWPCL from Avantha Power and Infrastructure".

Adani Power currently has a operational capacity of 9240 MW, comprising of 4620 MW at Mundra in Gujarat, 3300 MW at Tiroda in Maharashtra and 1320 MW at Kawai in Rajasthan. "With the acquisition of 1200 MW Udupi power plant which is due for completion shortly, and with KWPCL now, the installed base of Adani Power will increase to 11,040 MW...", the release added.

"This is the time for consolidation in the Indian power sector; and as a leading private power producer, Adani Power, has taken the lead in acquiring power assets which are strategic fit to group businesses and potentially at the lowest end of the cost curve.... The acquisition of KWPCL expands our footprint in India particularly in the coal mining belt of India and we are bullish of expanding our presence further in the country," stated Gautam Adani, chairman of Adani Group in the release.

VA Tech Wabag bags Rs 100-cr project in Philippines

VA Tech Wabag has bagged a Rs 100-crore project to set up a sewage treatment plant in the Philippines, according to a press release from the company.

The World Bank-funded project involves designing and building a 20 million litre a day sewage treatment plant at Tunasan and operating and maintaining it for one year.

This is a critical project because the treated wastewater flows into Laguna Lake, one of the biggest alternate source for drinking water in the Philippines.

This has emerged an important market for Wabag which has executed three projects in Bagbag, Tatalon and Dona Imelda and is handling two large projects at Illugin and Putatan.