City based Tamilnadu Petroproducts Ltd is embarking on capacity expansion for Linear Alkyl Benzene (LAB), moderisation of heavy chemicals division (HCD) and setting up of propylene recovery unit (PRU) at an outlay of Rs 435 crore.

The company will expand its LAB capacity from 120,000 tpa to 145,000 tpa at an estimated outlay of Rs 240 crore. 

The project would be commissioned in about 24 months, post regulatory approvals.

According to Tamilnadu Petro, a sum of Rs.165 crore will be spent on modernsing its caustic soda and chlorine unit by installing bipolar membrane technology in the place of existing mono-polar  membrane technology.

On completion of the project the production capacity for caustic soda will go up to 250 ton per day from the current 150 ton.

The company will also spend about Rs.30 crore to set up PRU.

According to Ashwin Muthiah, Vice-Chairman of the company   Founding Chairman, AM International Tamilnadu Petro will be the first private sector player in the non-refining sector to set up such a unit.

Propylene, a bulk chemical intermediate, is the raw material for propylene oxide and is derived from liquified petroleum gas (LPG).

Tamilnadu Petro is in advanced talks with various domestic and international vendors for LPG for this project.

The company will fund its expansion through a mix of internal resources and other sources.