The Chatterjee Group (TCG), a private equity firm based in the United States, is exploring opportunities to collaborate with state-owned Indian enterprises for a major oil-to-chemicals initiative in India. According to sources familiar with the situation, TCG is currently engaged in discussions with ONGC and its subsidiary Hindustan Petroleum Corporation Limited (HPCL) regarding this substantial project, which is projected to exceed $10 billion.
The venture is set to be located in Cuddalore, a city in Tamil Nadu, southern India. The proposal involves ONGC and HPCL potentially acquiring a 49% stake in the project, while TCG, which operates in India through its affiliate Haldia Petrochemicals Ltd., would retain a 51% share. The details of these negotiations are confidential, and representatives from TCG, as well as Haldia Petrochemicals, ONGC, and HPCL, have not yet provided official comments on the matter.
This significant investment aims to enhance India’s petrochemical sector, which is crucial for producing a wide range of products including consumer goods and automotive components. The growing demand for petrochemicals in India has attracted attention from both billionaires and global industry leaders, driven by the country’s status as the world’s fastest-growing major economy.
According to government projections, the chemical and petrochemical market in India is anticipated to expand threefold to reach $1 trillion by 2040, contributing over 10% of global growth in this sector. In response to this burgeoning market, many oil refiners, including Reliance Industries Ltd., owned by billionaire Mukesh Ambani, are shifting their focus from traditional fuel production to petrochemical outputs.
This strategic move aims to capitalize on the increasing demand for specialized plastics and chemicals, particularly those used in the manufacturing of solar panels and electric vehicles. The TCG project, with a projected output capacity of 3.5 million metric tons of ethylene and propylene per year, is scheduled to be operational by 2029, as reported by Haldia Petrochemicals’ CEO Navanit Narayan.
The Chatterjee Group (TCG) is a US-based private equity firm known for its diverse investment portfolio across various sectors, including petrochemicals, real estate, and technology. With a strong presence in both domestic and international markets, TCG leverages its expertise to drive growth and innovation in its investments, partnering with leading companies to undertake large-scale projects globally.
