Kothari Petrochemicals to Acquire Land in Andhra Pradesh for ₹74 Crore to Support Expansion Plans.

Kothari Petrochemicals Ltd (KPL), India’s leading producer of polyisobutylene (PIB), has announced plans to purchase land in Andhra Pradesh for ₹74 crore to support future expansion initiatives. The company’s Board approved the acquisition on Monday, marking a strategic step towards long-term growth.

In its financial report for Q2 FY24, KPL posted a profit after tax (PAT) of ₹16.33 crore, down from ₹18.54 crore in the same period last year, attributed to changes in the raw material mix. However, revenue from operations rose to ₹180.59 crore, an increase from ₹161.55 crore in Q2 FY23, according to a stock exchange filing. For the first half of FY24, PAT grew slightly to ₹35.69 crore compared to ₹34.20 crore in the previous year.

KPL, a ₹603 crore company, holds a significant market position as India’s sole manufacturer of PIB, meeting around 91% of the country’s demand for conventional PIB. In FY24, KPL saw a 15% rise in domestic PIB consumption, with its Manali, Chennai facility producing 40,782 tonnes, up from 32,640 tonnes in FY23.

PIB, a versatile polymer derived from isobutylene, has widespread applications across industries including automotive, lubricants, adhesives, and cosmetics. KPL sources raw materials from CPCL and Reliance Industries Ltd (RIL) to produce various grades of PIB used in lube oils, plastics, paints, and rubber.

Founded in 1989 as a manufacturer of caustic soda for backward integration with Kothari Sugars and Chemicals Ltd, KPL shifted focus entirely to PIB after its 2006 merger with Primetra Technologies Private Ltd (PTPL). Today, the company’s commitment to expanding production aligns with the growing demand for PIB products, according to a recent ICRA report.

HBL