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Urea manufacturer Southern Petrochemical Industries Corporation (SPIC) is looking at a phase of consolidation with sustained operation, according to its Chairman Ashwin Muthiah.
In an interaction with journalists from BusinessLine and The Hindu , he said the six-lakh-tonne-a-year unit in Tuticorin is operating to capacity. The policy relating to use of naphtha as a feedstock is in place till natural gas is made available. So, the unit can operate unhindered, he said.
In 2012-13, the company went through a ₹3,300-crore Corporate Debt Restructuring and Muthiah had reported to shareholders in 2014 that it had met its commitment under the CDR.
Muthiah said with the urea unit working to capacity, SPIC can look to a “steady state profit” in the coming financial year.
The company meets its working capital requirement through credit from naphtha suppliers overseas. Also, timely disbursement of urea subsidy will help liquidity, he said.
Muthiah was also optimistic that natural gas feedstock will be available with the progress in the Ennore LNG terminal project by IOC. SPIC will be able to move away from naphtha and start using natural gas as a feedstock for making urea.
With the urea plant in operation, funds will not be an issue for the transition in feedstock or for further expansion, he said.
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