Kothari Petrochemicals Ltd (KPL) announced its intention to purchase land in Andhra Pradesh for ₹74 crore as part of its expansion strategy. In its financial results for the quarter ending September 2024, the company reported a profit after tax (PAT) of ₹16.33 crore, down from ₹18.54 crore in the same quarter last year, primarily due to changes in the raw material mix.
However, revenue from operations increased to ₹180.59 crore, compared to ₹161.55 crore in the same period of the previous fiscal year. For the first half of the fiscal year ending September 30, 2024, KPL’s PAT rose slightly to ₹35.69 crore from ₹34.20 crore a year earlier.
In 2023-2024, KPL maintained its position as the sole producer of polyisobutylene (PIB) in India, meeting around 91% of the country’s demand for conventional PIB, which saw a 15% rise in domestic consumption. The company operates a facility in Manali, Chennai, with an annual production capacity of approximately 48,000 tonnes.
In FY24, Kothari Petrochemicals produced 40,782 tonnes of PIB, up from 32,640 tonnes in FY23. The company sources its raw materials from CPCL and other suppliers, including Reliance Industries Ltd, to manufacture PIB in various grades for the lube oils, plastics, paints, and rubber industries.
PIB, a liquid polymer derived from isobutylene, has numerous applications, including use in lubricants, transmission fluids, adhesives, sealants, and cosmetics. It is particularly valued in the automotive sector as an additive for fuels and lubricants due to high demand. KPL, founded in 1989 initially to produce caustic soda, transitioned from its original focus on nitro chloro benzene (NCB) and now primarily concentrates on PIB production following its merger with Primetra Technologies Private Ltd in 2006.
