The Mangalore Refineries and Petrochemicals recently decided to bring into its fold ONGC Mangalore Petrochemicals Ltd., (OMPL), its subsidiary company. The board of directors approved the integration of OMPL in its 198th meeting at New Delhi last week.
OMPL, a Greenfield petrochemical project within the Mangaluru Special Economic Zone, is located adjacent to MRPL’s own 15 MMTPA refining and petrochemical complex. OMPL comprises an aromatic complex for production of Paraxylene and Benzene. Hitherto, MRPL held 51 per cent controlling stake in OMPL, while the rest was held by ONGC. A release from MRPL here said the merger is poised to create higher shareholder value over and above the sum of two companies. It quoted MRPL Managing Director H. Kumar as saying, “Dovetailing the operations will give us an edge in backward integration and the synergy will deliver tremendous advantages. Operation of the aromatic plant being integrated with the refinery will provide higher returns for stakeholders, adding value to refinery product streams and flexibility to refinery to optimise its GRM.”
He said optimal utilisation of the plants of OMPL and MRPL would maximise combined margins of refinery and petrochemicals in tune with market dynamics. The company would also get benefitted with pooling in of various resources, including management, administrative and technical skills of both the companies.
Polypropylene unit
The company in June last week dispatched the first consignment of polypropylene pearls —Mangpol— manufactured at its recently commissioned polypropylene unit here. The unit can produce 4.4 lakh tonnes of Mangpol a year and can cater to the requirement of the entire south India (about 5 lakh tonnes).
