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HPCL-MRPL merger plan yet to reach board level

October 07/2019

MOSCOW (MRC) -- HPCL's proposed plan to acquire the Mangalore Refinery and Petrochemical Led (MRPL) for synergy is yet to reach board level discussions, reported EconomicTimes with reference to the company's CMD M K Surana.

"We are working on that. Earlier we have said that makes a synergy for HPCL and we are working with the ONGC for this. It is work in progress. It has not reached the board stage and once finalized, it will go to the three boards - HPCL, MRPL and ONGC," Hindustan Petroleum Corporation Ltd Chairman and Managing Director Surana told IANS on the sidelines of India Economic Summit here.

In August, ONGC Chairman and Managing Director Shashank Sekhar had said the proposed merger of its two subsidiaries - HPCL and MRPL - would happen next year.

ONGC had acquired HPCL by buying out the entire government stake of 51.11 per cent by paying Rs 36,915 crore. HPCL holds 16.93 per cent and ONGC has 71.63 per cent.

The proposed consolidation exercise has seen HPCL reluctant to give parent status to ONGC soon after the government exited HPCL by selling its stake. HPCL, for quite some time, did not recognize ONGC as its promoter.

As MRC wrote before, in March 2018, HMEL received clearance from Indias ministry of environments for the polymer addition project at its Guru Gobind Singh refinery and Petrochemical complex. The proposed units at the petrochemical complex include a 1.2m tonnes/year naphtha cracker, two linear low density polyethylene/high density polyethylene (LLDPE/HDPE) swing plants of 400,000 tonnes/year capacity each. The complex, in Bhatinda region of Punjab province, will also house a 450,000 tonnes/year HDPE unit, a 500,000 tonnes/year polypropylene (PP) plant and a 55,000 tonnes/year butane-1 line.

In December 2018, it became know that HPCL-Mittal Energy Limited, or HMEL, will start its new 500,000 mt/year PP plant in Bhatinda in 2021.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has about 25% marketing share in India among PSUs and a strong marketing infrastructure. The Government of India owns 51.11% shares in HPCL and others are distributed amongst financial institutes, public and other investors.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, LLDPE, PP block copolymer, homopolymer PP, propylene, HDPE, ethylene, HPCL, MRPL, ONGC, India, Russia.
Category:General News
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