The Hindu Business Line : Cetex Petrochemicals plans project overseas

CETEX Petrochemicals Ltd is considering a plan to set up a project "either in West Asia or in South-East Asia" to produce MEK, a petrochemical. But the plan is in its preliminary stages, said Mr S. Ilanahai, Managing Director.Cetex Petrochemicals, which was acquired from the RPG group by a group of professionals in April 2004, produces mainly two products, Methyl Ethyl Ketone (MEK) and Secondary Butyl Alcohol (SBA). MEK is used in a variety of applications — making printing ink, magnetic tapes, transparent paper, adhesives and artificial leather, among others. SBA is used in the manufacture of bulk drugs, perfumes and essences, dyes and paints.

Last year, Cetex Petrochemicals' turnover was Rs 60 crore on which it made a profit of Rs 2.5 crore. According to Mr Ilanahai, the turnover is expected to touch Rs 80 crore this year and Rs 120 crore in the next.

The company's Chairman, Mr S. Pattu, told Business Line that with the demand being so good, the company spent Rs 10 crore on raising its capacity from 7,000 tonnes (of both chemicals put together) to 8,500 tonnes a year. In addition, Cetex imports about 6,000 tonnes of MEK to meet the domestic demand.

However, the company would prefer its own source of MEK abroad. Hence, the plan is to set up a project abroad. The project could cost around $ 20 million (Rs 100 crore).

Cetex's Web site says that the company is looking for technology transfer agreements or joint venture proposals from speciality chemicals manufacturers who might want to set up operations in India.

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