Manali Petrochemicals gains on the BSE

Manali Petrochemicals is currently trading at Rs. 28.20, up by 0.85 points or 3.09% from its previous closing of Rs. 27.50 on the BSE.

The scrip opened at Rs. 26.75 and has touched a high and low of Rs. 28.45 and Rs. 26.00 respectively. So far 178969 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 5 has touched a 52 week high of Rs. 29.80 on 07-Sep-2020 and a 52 week low of Rs. 8.00 on 25-Mar-2020.

Last one week high and low of the scrip stood at Rs. 28.85 and Rs. 20.85 respectively. The current market cap of the company is Rs. 463.54 crore.

The promoters holding in the company stood at 44.86%, while Institutions and Non-Institutions held 0.25% and 54.89% respectively.

Manali Petrochemicals (MPL) has finalised plans to triple its annual production capacity for Propylene Glycol (PG) from 22,000 MT to 70,000 MT in two phases at an investment of about Rs 150 crore. The capacity is proposed to be expanded initially to 46,000 MT to be completed in 18-21 months and then by another 24,000 MT thereafter. The entire project will be handled in-house by redesigning the current facilities to ensure cost-effectiveness and the most prudent budgetary practices.

On completion of the project, the Company, the only domestic manufacturer of the product, will meet a substantial part of the country's annual demand of about 100,000 MT of PG. Currently, a significant quantum is imported, which accounts for more than 75% of the entire country's demand for PG. The substitution of imports will save significant import bills and will also propel India towards self-sufficiency in PG production capability.

The primary focus of the project will be to supply to two sectors - pharmaceutical and food. The growth in demand expected in future in these two sectors will help MPL meet its sales target post the expansion. The revamp will also ensure environment-friendly practices.

It has been the philosophy of the AM group to be low on leverage. Keeping in line with this goal, MPL's expansion will be fully funded via internal resources without recourse to any external borrowing.

Manali Petrochemicals is a leader in the production and marketing of Propylene Oxide, Propylene Glycols and Polyols in India. The Company operates two grassroot production facilities at Manali to manufacture Propylene oxide (PO), Propylene Glycol (PG) and Polyols.