During the 36th annual general meeting of Mangalore Refinery and Petrochemicals Ltd (MRPL), held virtually on Thursday, the company’s Managing Director, M. Shyamprasad Kamath, clarified that there are no current plans for a merger between MRPL and Hindustan Petroleum Corporation Ltd (HPCL). Responding to shareholder inquiries, Kamath noted that the company, as a subsidiary of ONGC, adheres to directives from its parent company.
He specifically referenced a recent statement by Union Minister of State for Petroleum and Natural Gas, Suresh Gopi, who had previously addressed this topic in the Rajya Sabha. Gopi confirmed that there is no merger proposal under consideration at this time. The Minister had mentioned that any merger decisions would be based on various factors, including business needs, feasibility, and economic implications.
Kamath also provided an update on MRPL’s operations, highlighting that the integration of the company’s subsidiary, OMPL, has been successfully completed. In response to shareholder questions about future investments, he detailed the company’s strategic approach, which emphasizes both risk management and wealth generation.
Currently, MRPL exports approximately 34 percent of its products, but the company aims to decrease this figure by establishing a more robust retail presence. The goal is to achieve sales of 1 million tonnes through retail channels within the next three to five years.
Regarding geopolitical concerns, Kamath addressed the impact of regional tensions in West Asia on MRPL’s operations. He explained that the company is working to lessen its reliance on West Asian crude oil supplies. Whereas the company previously sourced about 50 percent of its crude oil from this region, this dependency has been reduced to around 35 percent over the past three years.
By diversifying its crude oil sources, MRPL is better positioned to handle potential disruptions. Kamath also discussed the company’s environmental goals, revealing an objective to cut its carbon footprint by 20-25 percent by 2028-29, with a target to achieve net zero emissions by 2038.
In terms of technological advancements, he addressed the implementation of artificial intelligence (AI) within MRPL. The company has established an AI policy focused on two main areas: enhancing process operations and improving the reliability of both rotating and static equipment.
Mangalore Refinery and Petrochemicals Ltd (MRPL) is a prominent Indian refining and petrochemical company, part of ONGC. Located in Mangalore, MRPL specializes in refining crude oil into high-quality products and petrochemicals. It aims to enhance its market presence, diversify crude oil sources, and adopt sustainable practices, including reducing its carbon footprint and integrating advanced technologies.
