Indian Petrochemicals Mulls Opportunity to Expand PVC Production

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Polyvinyl chloride (PVC) production in India could increase by as much as 150,000 metric tons a year if Indian Petrochemicals Corporation Limited (IPCL) (Vadodara, India) decides to proceed with a proposed expansion. Reliance Industries Limited (Mumbai, India), which is now the majority owner of IPCL, is studying ethylene dichloride supplies that would be used as feedstock to produce the extra PVC. The expansion would take place at IPCL's existing complex in Dahej, India, currently producing 150,000 metric tons a year of PVC, and would cost approximately $200 million. If feedstock supplies are secured and approval is given, construction could begin as early as the second half of 2003.

Reliance purchased a 26 percent share of IPCL from the government of India in June of 2002 and the proposed purchase of 20 percent more from public shareholders will give a 46 percent share of the once government controlled company. IPCL's new board of directors will consist of two government nominees, four independents, and six nominees from Reliance. Both companies are involved in the production of petrochemicals, synthetic fibers, and fiber intermediates. IPCL owns four chemical production complexes, all in India: a petrochemical complex at Vadodara, a complex at Nagothane, the Dahej complex in the Gandhar region, and a catalyst production site at Thane.