Ambani: Big plans

Mumbai, Dec. 2: Indian Petrochemicals Corporation (IPCL) will spend close to Rs 350 crore to expand its petrochemical capacity.

IPCL is planning to raise ethylene capacity in the Baroda cracker by 12,000 tonnes. It will also increase the poly-butadiene rubber capacity by 6,000 tonnes annually, apart from installing a fourth spinning machine in its acrylic fibre unit at Baroda. While this will raise the capacity by 6,000 tonnes, the gas cracker capacity at Gandhar is also slated to rise.

The fresh expansion plans come after IPCL completed various projects to enhance capital productivity.

Addressing shareholders at IPCL’s annual general meeting in Vadodara today, chairman Mukesh Ambani said the new projects will be completed within the next year.

According to Ambani, the year 2005-06 marked four years of operations for IPCL under the management of Reliance. During these four years, initiatives have been introduced to increase capacity utilisation, improve integration, reduce operating costs and improve financial management.

“These measures have enhanced overall productivity and efficiency. They also resulted in continuous improvement in financial and operating performance on a year-on-year basis.

“In 2005-06, the turnover of the company crossed the $2-billion mark for the first time. The net profit of IPCL crossed the Rs 1,000-crore mark for the first time since inception. This translates into a growth of 305 per cent in just over four and a half years,” he told shareholders.

During the year six polyester companies have been amalgamated with IPCL.