"Bharat Petroleum Corporation Ltd Greenlights Establishment of New Polypropylene Unit"

In a significant development, the Board of Directors of Bharat Petroleum Corporation Limited (BPCL) convened for a meeting on December 19, 2023, where they granted approval for the establishment of a Polypropylene (PP) Unit. This unit is slated to produce 400 Kilo-Tonnes Per Annum (KTA) of Polypropylene at the Kochi Refinery, with a gross project cost estimated at Rs. 5044 crore.

The decision to set up the PP Unit stems from the recognition of robust growth opportunities in the petrochemical segment within India, driven by expanding market demand. The availability of Propylene feedstock further enhances the feasibility of this initiative for BPCL Kochi Refinery (KR). Polypropylene, with versatile applications in downstream industries such as Packaging Films, Sheet, Boxes, Containers, Bags, Home Ware, Home Care, Personal Care, and various day-to-day articles, aligns with the strategic vision for the company's diversification.

The funds allocated for this project will be deployed in a Debt-Equity ratio of 65:35, reflecting a balanced financial approach. This decision underscores BPCL's commitment to capitalizing on growth opportunities in the petrochemical sector and fortifies its position as a key player in India's energy and chemicals landscape. The establishment of the Polypropylene Unit is expected to contribute significantly to the company's overall growth and meet the rising demand in downstream industries.

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