MOSCOW (MRC) -- MRPL has initiated its downward integration by amalgamation with ONGC Mangalore Petrochemicals Limited (OMPL), said Moneycontrol.
"A scheme of amalgamation of OMPL with the company has been proposed for approval of various regulatory authorities. The synergy between OMPL and MRPL will provide higher returns for stakeholders, adding further value to the product streams of your refinery and flexibility to increase its GRM, optimal utilization of the plants of MRPL," MRPL chairman D K Saraff said.
OMPL had recently commissioned a state-of-the-art Aromatic Complex with 914,000 tpa capacity of Paraxylene and 283,000 tpa capacity Benzene adjacent to the refinery. The amalgamation will ensure optimal utilization of resources which will lead to improvement in overall working culture and environment.
On the industry, he said that with the progress made on the Iran nuclear deal framework, the company is expected to benefit from import of Iran crude. "There are hopes that lower crude oil prices would lead to lower under recoveries for OMCs and presents an opportunity for the company to foray into retail markets," he said.
The polypropylene unit built with an investment of around Rs 1,800 crore has commenced commercial production, Mr Saraff said. "In South India, the annual Polypropylene demand is about 500,000 tonnes and MRPL's Polypropylene Unit is the only producing unit which can meet the entire demand in this region."
Mangalore Refinery and Petrochemicals Limited (MRPL), is an oil refinery at Mangalore and is a subsidiary of ONGC, set up in 1993. The refinery is located at Katipalla, north from centre of Mangalore city. The refinery was established after displacing five villages of Bala, Kalavar, Kuthetoor, Katipalla, and Adyapadi.
MRC