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TPL plans to set up new plant for LAB

Our Bureau

CHENNAI, March 30

TAMILNADU Petroproducts Ltd. is considering putting up a new, greenfield plant for linear alkyl benzene (LAB) on the eastern coast ``either near Haldia or any other location near to a port'', according to a press release from the company.

The plant is likely to be of a capacity of 80,000 tonnes and may cost around Rs. 800 crores, TPL's Managing Director, Mr. D. Arunachalam, told Business Line.

Mr. Arunachalam said that while there were three LAB producers in the western part of India (Reliance, IPCL and Nirma) and one in the South (TPL), there was none in the eastern region.

On the other hand, there is a good market for LAB in the region. TPL feels that unless it has a presence there, it might not be able to compete against imports.

``When we set up our plant here (Chennai), there was not much of a market. But after we came, the market developed. Today we are supplying up to 60 per cent of the demand,'' Mr. Arunachalam said, adding that the eastern market could be similarly develope d.

While TPL has not completed the exercise of identifying the site, Haldia appears to be a good fit for the company. For, there is Haldia Petrochemicals which could supply the basic raw material, benzene and superior kerosene oil.

The pre-feasibility work for this has been completed and the site location ``will be shortly decided, depending upon availability of feedstock and other infrastructure facilities''.

25 pc interim: TPL has declared an interim dividend of 25 per cent for 1999-2000.

Official sources say that the performance in the current year has been better. In the nine months ended December 31, 1999, TPL had posted a profit before tax of Rs. 63.03 crores and a net profit of Rs. 46.03 crores.