Mumbai, Oct. 20
PANAMA Petrochem Ltd (PPL) is implementing a Rs 30-crore capital expenditure programme involving expansion of its production capacities to meet the increasing demand for speciality petroleum products.
The expansion involves raising capacities at its plants at Ankleshwar and Daman by 15,000 tpa from existing 35,000 tpa to 50,000 tpa. At Daman, the post-expansion production is expected to commence by the end of this month and at Ankleshwar by the end of October 2006. Panama Petrochem is also setting up a plant at Baddi in Himachal Pradesh.
The capacities will cater mainly to the automotive lubricant segment and part of the specialty oil segment. Production is expected to commence from January 2007.
Mr Amirali Rayani, Managing Director and Chief Executive Officer, PPL, said: "The expansion project is undertaken to meet increase in demand from pharmaceutical and cosmetics industries."
The company is one of the established players in the petroleum sector engaged in the manufacturing of specialty petroleum products such as mineral oils, liquid paraffin, transformer oils, petroleum jellies and ink oils.
Panama plans to increase its authorised share capital from Rs 5 crore to Rs 11 crore and increase the borrowing limits to Rs 100 crore, by way of loans, debentures or any other form to fund expansion programme.
The company's products are exported to the US, the UK, the UAE, Saudi Arabia, Australia, Sri Lanka, Egypt, Tanzania, Syria, Italy, Turkey and Nigeria.