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HPL Acquiring L&T`s 51% Stake In HPLCL |
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One of the leading petrochemicals companies in the eastern region of India, the Haldia Petrochemicals Ltd (HPL), has recently stated that it is planning to acquire a 51% stake of L&T in their joint venture company HPL Cogeneration Company Ltd (HPLCL), soon. The officials of the company have informed that HPL will spend an amount of about Rs 180 crore for the acquisition and with this, the HPLCL will become a wholly owned HPL subsidiary company. The sources from the company informed that the HPLCL was established in the month of June, 1998 and it usually supplies steam and power exclusively to the Haldia Petrochemicals.
Informing that HPL was having the options of acquiring L&T`s holding stakes in the company, in the year of 2020, the MD of HPL, Mr. Swapan Bhowmik said, "HPLCL will boost our bottomline through the operational synergy between both companies". He informed that the HPLCL, is having a paid up equity of Rs 122 crore and a generation capacity of 116 MW at the moment, and it is also using naphtha as feedstock. Mr. Bhowmik said that the HPL is now planning to make some fresh investments in HPLCL, with a view to reduce the operating costs and he added, "Now, the unit is underutilized as we are consuming 70 MW. Once the 30% capacity expansion is complete, our utilization will be much more".
While talking about the possibility of the company to improve its position in the fiscal 2008-09, Mr. Bhowmik said that it is probably going to be difficult for HPL. He said, "There will be tremendous pressure on the bottom-line due to increase in naphtha prices and imposition of import duty". He added that apart from the negative impact through the imposition of the import duty is going to be Rs 200 crore, there will also be a further hit of Rs 100 crore due to the plant shutdown from mid-October to December for expanding its capacity.
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| HPL Acquiring L&T`s 51% Stake In HPLCL |
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