SPIC Plans ₹970 Crore Expansion, Includes Green Ammonia Unit

Southern Petrochemical Industries Corporation Ltd (SPIC), a key player in the manufacture and sale of urea, is launching a ₹970 crore capital expenditure programme to boost urea capacity and establish a green ammonia plant. The plan includes revamping SPIC’s existing urea plant to increase capacity and constructing a 150-tonnes-per-day green ammonia unit. The revamp aims to enhance plant stability and efficiency.

“This expansion reflects our commitment to bolstering production capacity, diversifying operations, and driving sustainable growth,” said Ashwin Muthiah, Chairman of SPIC and Founder Chairman of AM International, in an interview with businessline.

The urea plant upgrade and overall capex plan will increase urea production capacity from 6.24 lakh tonnes to 9.12 lakh tonnes annually. “We have almost stopped buying naphtha as we now have a sustainable supply of natural gas. The transition from naphtha to natural gas as a raw material has improved the plant’s efficiency. We have strengthened our balance sheet, converted to gas, and ramped up capacity to the maximum,” Muthiah explained.

SPIC has fully transitioned to gas-based manufacturing and has been included in the gas pool mechanism effective May 1, 2024.

Muthiah also noted that SPIC has adequate working capital and will consider raising funds if needed. “We are now a dividend-paying company, giving dividends in a measured way to retain some money in the company for growth,” he added.

HBL