HPL operating at 95% plant capacity, witnessing better margin

Haldia Petrochemicals Ltd (HPL) is running its plant at 95 per cent of the capacity and witnessing good margin due to low naphtha price and better realisation from product sales, a company source said on Wednesday.

Though cyclone Amphan caused severe damage in some parts of West Bengal including Haldia, the port town in East Midnapore district, the petrochemicals major managed to continue its operations, he said.

"We are witnessing better margin at the moment due to low naphtha price," the company source told PTI.

Before the COVID-19 outbreak, the company had bought the main raw material, naphtha, at a price which was higher than the present prevailing rate.

"Now, we are making money due to lower raw material price and better realisation from product sales," he said without divulging the details of the price trend of the input.

HPL has already started dispatching its products to overseas markets, he said.

"We are exporting polypropylene (PP) to China," he said, adding that the polymer is used in the automobile, packaging and medical sectors.

The company also exports products to Nepal and Bangladesh, he said.

HPL is keen on selling its products in the domestic market as the realisation is better within the country as compared to that from exports, he said.

"We are selling at a level tad more than the import parity price. There are buyers at this price level because imports mean a lot of hassles, and orders have to be placed in advance," the company source said.

Around 40 per cent of the company's production is sold in West Bengal.

"As the automobile sector in India virtually comes to a standstill, we find the market in China to export PP," he said, adding that the company also produces other polymers like high-density polyethylene and low-density polyethylene.

HPL is also hopeful of the revival of the economy, he added.