$1 Billion! Indian Petrochemical Company Plans to Invest $1 Billion in Polycarbonate Plant in West Bengal

India's leading petrochemical producer Haldia Petrochemicals Ltd (HPL) plans to establish a plant in West Bengalpolycarbonateproduction plant, capital expenditure is1 billion dollars(Around ₹870 billion). The company plans to utilize its idle land at the existing site in Haldia, indicating a further diversification into downstream chemical businesses.

Polycarbonate is a thermoplastic compound that is widely used in industries such as automotive and packaging due to its durability under high temperatures, impacts, and chemicals. It has not yet been produced in India. After successfully starting commercial production, polycarbonate will serve as an import substitute. Driven by the continuous growth of the automotive and packaging industries, the demand for this thermoplastic in India has been on the rise.

at presentIndia fully meets its polycarbonate demand through imports.According to the company's management, polycarbonate production is a logical extension and forward integration of HPL phenol production, for which the company has obtained a license from Lummus Technology.

The basic raw materials for polycarbonate, phenol, and acetone are expected to be internally supplied by HPL by mid-2026. Haldia Petrochemicals Ltd, owned by New York industrialist Purnendu Chatterjee, is currently establishing a phenol plant in Haldia as part of its major transition into the downstream chemical industry.

The company's management further stated, "India is heavily dependent on the import of polycarbonate, which is a downstream product of phenol. We are setting up a phenol manufacturing plant, so diversifying into polycarbonate production is a natural process."

The project requires a capital expenditure of 1 billion US dollars (approximately 870 billion rupees). Haldia Petrochemicals, under the Chatterjee Group, is looking for an investment partner to partially fund the new polycarbonate production facility. In addition, the company is seeking a technology partner for the project.

To execute the project, HPL must find a technical partner, as polycarbonate manufacturing technology is strictly protected by a few global players. Leading producers includeADNOC's Covestro AG (Abu Dhabi), SABIC (Saudi Arabia), LG Chemicals (South Korea), as well as several companies from Japan and Taiwan.

Haldia Petrochemicals is facing losses due to the ongoing downturn in the petrochemical industry. Therefore, funding for any new project will depend on the lenders' assessment of the project's feasibility and the expected return on investment for this import-substituting polycarbonate project.

In November 2024, Haldia Petrochemicals (HPL) announced the signing of a license amendment with Lummus Technology.to expand its phenol production capacity at the upcoming phenol and acetone plant in Haldia, West Bengal.The agreement, signed by Navanit Narayan, full-time director and CEO of Haldia Petrochemicals, and Romain Lemoine, Chief Commercial Officer of Polymers and Petrochemicals at Lummus Technology, marks the increase in HPL's phenol production capacity from 300,000 tons per annum (TPA) to345,000 tonsa crucial step.

This capacity expansion is in line with HPL's ambitious growth strategy and highlights the company's commitment to supporting the Indian chemical industry. As part of a massive greenfield investment of over 500 billion rupees in Haldia, HPL is not only focusing on phenol production but also on cumene and acetone, to meet the growing domestic demand and promote the growth of the downstream chemical industry.

The facility will also be equipped with India's first dedicated propylene unit utilizing Olefins Conversion Technology (OCT), which will be provided by Lummus Technology. HPL aims to complete the project by mid-2027. This expansion is a significant milestone for the company, solidifying its position as a key contributor to India's industrial growth and enhancing its role in the production of essential chemical intermediates.

Narayan commented: "Our collaboration with Lummus Technology has enabled us to enhance our production capacity, meeting the growing demand for phenol and acetone in India. The upgrade to an annual capacity of 345,000 tons highlights our commitment to providing high-quality products to support the country's chemical and related industries."

The signing ceremony also highlighted the crucial role of Lummus Technology in supporting HPL's strategic initiatives. Romain Lemoine, Chief Business Officer for Polymers and Petrochemicals at Lummus Technology, said: "This partnership reflects our shared commitment to innovation and progress in the petrochemical industry. We are proud to support HPL in expanding its operations to meet market demand."