The Hindu Business Line : Aspet plans to streamline operations

South Asian Petrochem Ltd, the 100 per cent EOU producing bottle and film grade PET resin, is planning to undertake a de-bottlenecking exercise in July-August next year. According to Mr C.K. Dhanuka, the Vice-Chairman of the company, the activity would cost Rs 30 crore and will be funded through debt and internal accruals.

The Kolkata-based Dhunseri Tea & Industries Ltd has promoted South Asian Petrochem, popularly called Aspet. Aspet's plant is located at Haldia.

Recently, the company increased the capacity of the Haldia plant from 1.4 lakh tonnes per annum to 1.8 lakh tonnes per annum. Talking to Business Line, Mr Dhanuka said the cost of this expansion was negligible.

Making profit

The 2005-06 financial year witnessed the second full year of commercial production of Aspet. The company clocked a turnover of Rs 983.93 crore and net profit of Rs 20.23 crore as against Rs 833.31 crore and Rs 18.32 crore, respectively, in 2004-05.

About six months back, the company had floated South Asian Petrochem USA, LLC, a subsidiary in the US, registered in the state of Georgia. According to Mr Dhanuka, the outfit would be used as a marketing venture. "We are already selling our products in the US and this company is now being used for this purpose," he added.

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