Efforts are on to expand our products base, says CPCL MD

Satisfied with its recent Navratna status and increased financial cap, Chennai Petroleum Corporation Limited (CPCL) has begun efforts to expand its product base. “We are the only refinery in the country that produces fuel, lubricants and wax. We are looking at the possibility of improving the quality of wax and introducing more varieties of lubricants,” CPCL Managing Director H. Shankar said.

Speaking to The Hindu, Mr Shankar said the financial health of the company was very strong and he could quickly take an offer to the board, driven by Navratna’s increased freedom.

Absorbing capital expenditures

“It is a good time to start the process of moving towards new projects. We have the capacity to cover investment expenses on our own and the borrowing power. After COVID-19, each of our employees is focused on what we can do for the company. This is reflected in both physical and financial performance.”

The two products likely to be considered first to examine the possibility of added value are waxes and oils.

“We are currently producing beeswax for candles and packaging. We can improve the product and bring in better quality beeswax or varieties that can be used in other industries. In the case of oils, we can add value such as white oil that can be used in the cosmetic industry,” he said.

On the case of expansion of the refinery with an annual capacity of 10.5 million tonnes in Manali near Chennai, he said Engineers India has already done the feasibility study for the same. “One of the most important projects in our minds”

“Secondary units, storage tanks, pipelines and other units need to be thoroughly examined. Over the next six months, we will conduct an in-depth review of which projects we will undertake and how we will balance capacity expansion and value addition,” he said.

Mr. Shankar said they are working on the configuration at the Cauvery Basin Refinery in Nagapattinam and seeing how it can be transformed into a different model so that the company can earn more returns on investments.