.
Haldia Petrochemicals Limited
West Bengal | India | Email | Home
Eastern India's Only Petrochemicals Project
Haldia Petrochemicals Limited (HPL) is now ready to commission its Naphtha Cracker Unit as part of its scheduled commissioning of all process plants prior to commercial production. The mega US $ 1.5 billion integrated greenfield petrochemicals complex is one of the largest joint venture projects in the country today. It is also Eastern India's only petrochemicals project.
With HPL's commissioning, Eastern India can now look forward to a new economic and industrial resurgence around plastics processing. The Company's production of over 600,000 tonnes per annum of polymers with the world's most advanced technology sourced from leaders such as Montell and Mitsui will provide the raw materials for this industry. Till date, one of the main reasons for the poor development of plastics processing as well as a correspondingly low per capita plastics consumption in the region has been the lack of raw materials.
HPL's Business Development Group and Application Research and Development Centre are working in tandem to expand capacity in Eastern India's plastic processing industry, while providing quality technical services in product applications and trials. The Company's marketing efforts are focussed on promoting the business opportunities in plastics, both at a regional as well as a national level, especially since the demand for plastics is registering an industry growth rate of 15% every year. 
Today plastics are a vital part of our daily lives and the list of different uses and products keeps growing in so many different ways. Indeed, there is room to grow because India's per capita consumption of plastic products is just 2.8 kg. per annum compared to a world average figure of 18 kg. In four years, the domestic demand will be doubling from 1.8 million TPA to over 3 million TPA in 2001...a growth rate of 75%. Indeed, Eastern India's growth rate in plastics consumption is 1.5 times the national growth rate.
New Business Opportunities in Polymer Conversion
The plastic downstream industries based on HPL raw materials that have potential for success in both the domestic and the export markets are many. The novelty and unique qualities of newer products in comparison with conventional products in the market would be key deciding factors for setting up new industries. Among the products with significant market potential in the Eastern Region are :
LLDPE : Liquid Packaging (Multi - Layer and Mono Layer Film), Cling Film, Lamination Film, Shrink Film, Garbage Bags, Cable Coating, Synthetic Paper, Injection Moulded Products, Pipes for Drip Irrigation, Agricultural film.
HDPE : Crates and Bins, Moulded Luggage, Bottle Caps, Toys, Ropes, Nets, Barrels, Jerry Cans, Tarpaulins, Houseware, Containers, Pipes for Water/Gas, Pallets, Liners, Bottles.
PP : BOPP Film, TQ Film, Carpet Backing, Fibre and Filament, Non-Wovens, Furniture, Ropes, woven sack, Geotextiles, Automobile Components, Thermoware, Houseware, Medical and Healthcare products, Crates, Pallets, Stretch and Blow Moulded Containers.
HPL Support Services For Downstream Investors Business Development Cell
To assist both existing converters as well as new entrepreneurs in setting up plastic industries with market potential in the Eastern Region, HPL has a special Business Development Cell which motivates enquiries from potential downstream investors through interpersonal contact programmes, participation at industry fairs and also though presentations at workshops and seminars.
The assistance available from HPL's Business Development Cell for setting up new industries includes :
  • Information on market, machinery, product technology etc. for potential investors.
  • Identification of selected products with market relevance for India and the Eastern Region.
  • Preparation of Market Studies and Feasibility Reports on the selected products.
  • Identification of types and sources (Domestic and International) of plastic processing machinery.
  • Assessment of Term Loans/Working Capital requirements with Financial Institutions and Banks.
Application Research And Development Centre
Haldia Petrochemicals Limited also has an Application Research and Development Centre at Salt Lake, near Calcutta for research and for application development. The research wing looks into the development of polyolefin grades that suit both traditional as well as new applications. The technical services team provides customised problem solving assistance, material selection and process optimisation.
Assistance available from ARDC :
  • Information on all polymers produced by HPL
  • Information on processability of materials including demonstration
  • Technical service to customers
  • New application development
  • Quality analysis and compliance to standards
  • Development of new products through studies on blends and compounds
  • Advice on process technologies/techniques
Haldia Petrochemicals Limited has assisted in setting up around 95 projects for plastics processing, in Eastern India. This has resulted in 80,000 MTA capacity addition and covers products as diverse as housewares, blow moulded containers, rotomoulded products, pens, masterbatch and cable compounds.
A significant achievement has been the decision of Nilkamal Plastics to set up a new plastics processing unit in West Bengal. Such a decision points to the positive, investment-friendly attitude of the Government of West Bengal. Nilkamal's successful venture in West Bengal, relying on HPL for raw materials, will be a great advertisement to draw other downstream investors to Eastern India.
HPL'S COMPETITIVE EDGE
Haldia Petrochemicals Limited is entering as a new player in the market with speciality grade products offering distinct process advantages.
LLDPE : HPL's LLDPE production will be using the advanced Spherilene Gas Phase Process under license from Spherilene SPA (Italy), a Montell subsidiary. Among the Spherilene plants in the world which are operational today, excluding Montell's Pilot Plant at Ferrara in Italy, are the Montell Plant at Lake Charles in Louisiana, USA, two Daelim Plants at Yochen, South Korea and two plants in Brazil.
HPL's LLDPE will offer speciality Film Grades with the following qualities :
  • HP C4 and HP Quattro Grades
  • Easier Processability
  • Higher Dart Impact Strength and Mechanical Performance
  • Higher heat seal strength
  • Excellent, Clarity (Especially HP Clarity Grades)
  • Bimodality, resulting in a better balance of performance and properties 
PP : HPL's Polypropylene production will be using Spheripol Gas Phase Process under license from Tecnimont SPA (Italy) which is also a Montell subsidiary. This is a two-stage hybrid process. The first stage is the liquid phase for Homopolymerisation and the second is the gas phase for Copolymerisation. Its high yield/high selectivity catalyst only needs to be used at a ratio of 1 kg catalyst to 30,000 kg PP, which eliminates the need to remove catalyst residues.
Spheripol PP produces a highly versatile product mix
  • High Quality Commodity Grades 
  • Speciality Grades such as :
  • Controlled Rheology Copolymers
  • Very High Impact Copolymers
  • High clarity Random Copolymers 
  • Extrusion Coating Grades
HDPE : HPL produce HDPE and MDPE grades using the Spherilene Swing Process and the Mitsui Chemicals Slurry Process. The product mix will include grades to suit a wide variety of applications : injection moulding, blow moulding, pipes, telecom cable insulation, raffia, high strength blown film, etc.
To familiarise customers with the new product grades, the company has undertaken market seeding activities with imported raw material from the technology licensors over the last two years. The objective : motivate established converters, diversifiers and entrepreneurs to regard HPL as a reliable supplier of international standards, committed to providing technical support and assistance to downstream investors. 
Haldia Petrochemicals Complex
A Naphtha-based Petrochemicals Complex, consisting of an Olefins Complex with a Naphtha Cracker of 420 KTA  Ethylene capacity, Butadiene Extraction Unit of 65 KTA capacity, Benzene Extraction Unit of 60 KTA capacity and a Hydrogenated Pyrolysis Gasoline Unit of 117 KTA capacity; Polymer Plants consisting of a LLDPE Swing Plant of 225 KTA capacity, HDPE of 200 KTA capacity and Polypropylene of 210 KTA capacity. The Technology suppliers are :
ABB Lumus Global Naphtha Cracker Unit
BASF- Butadiene Extraction Unit
IFP PGH Plant 
Lurgi Benzene Extraction Unit
Montell Polypropylene
Montell LLDPE/HDPE
Mitsui HDPE
The Polymer Units use latest bi-modal technologies with capabilities to produce a wide range of Polymers including several speciality grades. Utilities and Offsites Facilities have been integrated across the Complex to optimise the costs. Steam, Power and Nitrogen supplies are provided through Captive facilities.
Technology
Process technologies have been accessed from leading Licensors in the world. The Licensor for the Naphtha Cracker Unit is the leading provider of technology for Liquid Crackers. In the case of Polymers, Polypropylene Plant has the most widely used Spheripol gas phase process, using a high yield/high selectivity catalyst. The product range is versatile with a product mix from high quality commodity grades to speciality grades such as :
  • Controlled Rheology Copolymers
  • Very High Impact Copolymers
  • High Clarity Random Copolymers
  • Extrusion Coating Grades
The LLDPE Swing Plant will be using advanced Spherilene gas phase process. The product range will include speciality film grades, like "high performance" grades which combine to a large extent the characteristics of conventional LLDPE and LDPE film grades. The bi-modal process provides a better balance of performance and product properties.
The HDPE technology is a slurry process which is also capable of producing MDPE grades. The product mix will cater to the entire range of applications, from normal grades of Injection Moulding, Blow Moulding, etc., to high molecular weight - high density grades for films, blow moulding, etc.
Status
The construction of the Complex has been completed and the Utilities and Offsites Facilities are fully operational to support the commissioning of the process Units, which are in progress. The entire Facility is due to be operational by end March 2000.
Marketing 
The marketing vision of the Company is "to develop a deep understanding of customer needs and changing trends to provide leading edge products and services that deliver value and benefit to the customers". The Company proposes to differentiate itself through focussed customer development, management and service. The Company has already set up Regional Offices in Mumbai, Chennai and Delhi, apart from Calcutta, and Branch Offices all over the country to service these regions. Market Seeding, with the Polymer Grades which the Company will be producing, has been in progress over the last few months.
An Applications Research and Development Centre has been set up in Calcutta with full-blown facilities, not only to develop newer and relevant market-oriented product applications, but also to provide technical services to the Processing Industry. The Development Centre is being manned by highly experienced professionals who have extensive knowledge of the Plastics Processing Industries in the country.
IT Facilities
The Company is putting in place a state-of-the-art globally proven Information Technology solution to integrate and support all its business processes. The IT programme is built around SAP R/3 implementation with appropriate Middlewares to integrate the Process and Business Applications. A Campus Network, based on ATM technology, with fibre optic cables, has been set up integrating all the Process and other applications.
Social Development Initiatives/Infrastructure
The Company has set up a full-fledged Rehabilitation Colony for the displaced persons and have also commenced implementation of various socially and economically relevant programmes in Haldia. The objective is to enhance the primary rehabilitation focus of compensation and homestead relocation with a new focus on income generation, coupled with social adjustment to progressive urbanisation and industrialisation in the area. The Company has also played a key role in the start of a school by Bharatiya Vidya Bhawan.
The Company is setting up a modern and aesthetically designed Township for its employees over a 200 acre plot. It will be self-contained with all amenities and facilities for meaningful social interaction and recreation for the families.
Plastics Industry in the New Millennium
With the commissioning of several Petrochemicals Complexes in the West, North and East in the last one year, the Plastics Processing Industry in the country is moving from a supply-driven mode to a demand-driven one. Even though the Plastics Industry is projected to maintain the present growth rate of 15% CARG or even higher, the availability of raw materials will out-strip the demand. The focus of the Industry should, therefore, be to develop newer consumer-oriented applications and exploitation of substitutional potential of conventional materials like, wood, glass, etc., with plastics. While doing so, the Industry has to focus on the improvement of "quality of life" through acquisition of newer processing technologies which can ensure both quality and affordability. Agriculture is one the most important aspects of our economy and there is huge potential for applications in water management, irrigation and food processing. It will play a significant role in the development of the rural economy which is an essential pre-requisite for ensuring a high GDP growth with attendant growth for all sectors including this Industry. The Petrochemical Industry, therefore, has a very important role to play in the development of newer and more versatile products and applications.
The country's export of plastics goods is about 2% of the total production of Polymers, compared to 13% of that of China. There is a vast potential in this direction and the Industry has to focus on expanding the export base.
The Industry has to be environmentally conscious and has to operate its Plants in a most environmentally friendly and responsible manner. Apart from, this, the Industry has to play a key role in the dissemination of knowledge in the use of plastics, its relevance vis-a-vis energy economics and educate the discerning public and help them to properly evaluate the information/disinformation being propagated regarding the environmental hazards of plastics.
The Indian Plastics Industry is well set on a high growth path and this can be achieved only by responsible participation of all the players in the Industry.
PLANT CAPACITIES
Plants
Capacity
Technology/Licensor
Nephtha Cracker (Ethylene) 420,000 TPA ABB Lummus, USA
PP 210,000 TPA Montell, Italy
LLDPE/HDPE (Swing) 225,000 TPA Montell, Italy
HDPE 200,000 TPA Mitsui, Japan
Butadiene 74,250 TPA BASF, Germany
Pyrolysis Gasoline Hydrogenation 117,400 TPA IFP, France
Benzene 77,050 TPA Lurgi, Germany
Nitrogen Plant 9000 NM3 Praxair (Built/Own/Operate)
Combined Cycle Co-Generation Power Plant 116 MW Joint Venture (HPL & L&T : HPL Cogeneration Ltd)
LSTK Constructors Units
Toyo Engineering Corporation, Japan Naphtha Cracker
Daelim Engineering Company, Korea PP
Daelim Engineering Company, Korea HDPE
Tecnimont, Italy LLDPE
Lurgi, Germany Pyrolysis Gasoline Hydrogenation
Lurgi, Germany Benzene Extraction
Lurgi, Germany Butadiene Extraction
Contributed by
Special Correspondent
Haldia
Haldia Petrochemicals
Top
.