CPCL plans product expansion and quality upgrades after Navratna status

Chennai Petroleum Corporation Limited (CPCL) is actively working to broaden its product portfolio following its recent elevation to Navratna status, which grants the company greater financial autonomy. H. Shankar, CPCL’s managing director, revealed plans to enhance the quality of wax and introduce new lubricant variants. "We are the only refinery in the country producing fuels, lubes, and wax. We are looking at improving the quality of wax and bringing more lube variants," Shankar told The Hindu.

Navratna Status Boosts Financial Freedom

The Navratna designation has increased CPCL's financial cap, enabling the company to fast-track project proposals. Shankar emphasized the company’s robust financial health, noting its ability to fund capital expenditure internally and secure loans if needed. "It is a nice time to start the process of moving towards new projects," he said, adding that the company’s post-COVID-19 focus on operational efficiency has improved both its physical and financial performance.

Focus on Wax and Lubricant Innovations

CPCL is prioritizing wax and lubricants for potential value addition. Currently producing wax for candles and packaging, the company is exploring higher-quality variants suitable for other industries. In the lubricant segment, CPCL is considering products like white oil, which has applications in the cosmetics industry. "We can tweak the product and bring higher quality wax or variants. In the case of lubes, we can add value like white oil," Shankar explained.

Refinery Expansion Plans Underway

CPCL is also advancing plans to expand its refinery at Manali, near Chennai, which has a capacity of 10.5 million tonnes per annum. Engineers India is conducting a feasibility study for this major project, which includes evaluating secondary units, storage tanks, and pipelines. "Over the next six months, we will do a deep dive on what projects we will take up and how to balance capacity expansion and value addition," Shankar said.

Exploring New Models for Nagapattinam Refinery

The company is also reconfiguring its Cauvery Basin Refinery at Nagapattinam to optimize returns on investment. Shankar indicated that CPCL is exploring alternative models for the refinery’s operations.

These developments underscore CPCL's strategic focus on innovation and capacity building, leveraging its enhanced autonomy to strengthen its market position.

Source: The Hindu