The Hindu Business Line : Supreme Petrochem investing in building insulator production

The 50:50 joint venture between Supreme Industries Ltd and the Rajan Raheja Group, is setting up a facility to manufacture extruded polystyrene sheets for use in insulating buildings from external heat.

Supreme Petrochem’s Chief Executive, Mr R. Rangarajan, told Business Line that the company is investing Rs 17 crore for a plant in Amdoshi village, about 120 km from Mumbai.

It will have an installed capacity of 1.5 lakh cubic foot of extruded polystyrene boards of 1.2 x 0.6 metre with a thickness of 25-150 mm.

The company plans to set up two more facilities in Chennai and Delhi to bring down the cost of logistics and help it cater to markets in the West, South and North.

Energy norms

The company foresees a growth in demand for insulators, he said. Developed countries have regulations to insulate buildings from external heat to conserve electricity.

China and few countries in West Asia are working on these regulations. In India, the Bureau of Energy Efficiency is working on norms for energy conservation in buildings.

At present, large buildings and hotels use imported materials that can reduce room temperature by about five degrees Celsius, conserving electricity significantly.

The average cost for extruded polystyrene is around Rs 10,000 per cubic metre now. The cost could come down by 30 per cent with local manufacture, he said.

Chennai plant

The company has a plant in Chennai to make expandable polystyrene, the primary raw material for foams. The company will use the space available at this plant to construct a brownfield facility at a cost of Rs 17 crore to make 1.5 lakh cu ft of extruded polystyrene per year.

The company is looking for land in Delhi to set up a greenfield facility. The investment would depend on the land cost, he said.

Supreme Petrochem makes polystyrene and related compounds for automotive, styrenic and other plastics industry. It exports around 50 per cent of the products to 93 countries.

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