Haldia Petrochemicals (HPL) will invest Rs 3,000 crore (USD 360 million) to set up new chemical plants in West Bengal. This includes the first on-purpose propylene plant and a phenol unit which will come up at its existing manufacturing facility at Haldia.

West Bengal, India: A new propylene plant and phenol unit will be deliberately established at the current manufacturing site in Haldia. Anticipated completion for both projects is set for the first quarter of 2026. The phenol plant is projected to yield 300 kilo tonnes per annum of phenol along with 185 KTPA of acetone.

Upon the inauguration of these facilities, the chemical business portfolio is poised to surge by an extra Rs 5,000 crore (USD 600 million). This potential investment could mark the chemical sector's most significant in West Bengal over the past two decades. Additionally, it has spurred the growth of ancillary units and is foreseen to create job opportunities in the downstream chemical industry. In the preceding financial year, the company garnered a revenue of Rs 999 crore (USD 120 million) from specialty chemicals.

According to the company’s whole-time director, A combination of debt and equity will fund the projects, with HPL engaging in discussions with banks and financial institutions to secure loans. The company plans to internally generate the equity component through internal accruals. Given the project's magnitude and the envisaged investment, it stands as HPL's most significant brownfield expansion since Project Supermax in 2010, which augmented the company's polymer-making capacity by 30 percent.

According to TechSci Research, Phenol, also known as carbolic acid, is a versatile compound with applications spanning industries such as pharmaceuticals, plastics, textiles, and agriculture. Its chemical structure, a hydroxyl group bonded to a benzene ring, lends itself to diverse applications, making phenol a cornerstone in the synthesis of various chemicals. In India, the demand for phenol has been steadily rising, mirroring the country's economic expansion. Phenol plays a pivotal role in the production of key chemicals like acetone, bisphenol A, and caprolactam, all of which have wide-ranging applications in the manufacturing sector.

As India continues its trajectory of industrialization, the demand for phenol is set to soar. Industries such as automotive, construction, and electronics rely heavily on phenol-derived products, and their growth directly influences phenol consumption. The proposed phenol plant with a production capacity of 300 kilo tonnes per annum is a clear indicator of the expanding chemical industry in India. This growth is not confined to phenol alone but extends to the entire downstream chemical sector.

The ripple effect of such projects includes the creation of ancillary units and, consequently, employment opportunities. The downstream chemical industry is expected to witness a surge in employment, contributing to local and regional economic development. Research and development efforts are likely to explore new applications for phenol, further diversifying its use. This could include innovations in areas such as bioplastics, pharmaceuticals, and specialty chemicals.