ANDHRA PETROCHEMICALS LTD.

Established on April 18, 1984, Andhra Petrochemicals Ltd (APL) was co-founded by Harish Chandra Prasad of The Andhra Sugars Ltd. (ASL) and The Andhra Pradesh Industrial Development Corporation (API DC). APL specializes in manufacturing Oxo-Alcohols, including 2 Ethyl Hexanol, Normal Butanol, and Iso Butanol. It operates as an associate of The Andhra Sugars Ltd. in Venkatarayapuram, Tanuku. Initially set up with a capacity of 30,000 metric tonnes per annum (MTPA) in Visakhapatnam, Andhra Pradesh, India, the company later underwent an Optimization & Modernization Scheme, raising its capacity to 73,000 MTPA. The plant incorporates cutting-edge technology from M/s JM Davy, London, U.K., with a total capital investment of approximately Rs. 497 crore. Commercial production commenced in February 1994, with a subsequent modernization of technology in May 2010. The project, with a capacity of 30,000 tonnes per annum and a cost of Rs 150 crore, was initiated for oxo-alcohol manufacturing under license from Davy McKee, London, and became operational in October 1993, albeit with a cost overrun of Rs 45 crore. To fund this overrun, a rights issue was issued in January 1993. The fiscal year 1994-95 marked the company's first full year of operations. The main applications of 2-ethyl hexanol, belonging to the oxo-alcohol family, include plasticizers for PVC, stabilizers, acrylates, printing ink finishing compounds, emulsion paints, tube additives, and surfactants. N-Butanal, another oxo-alcohol derivative, finds use in rubber, chemicals, printing inks, resins, urethane catalysts, adhesives, varnishes, pharmaceuticals, dyes, and pesticides. Significant plant replacement took place in 1996 to enhance performance. Loan conversion to equity shares worth Rs 13 crore occurred in March 1996. The promoter company, The Andhra Sugars Ltd., injected Rs 13 crore under a financial restructuring plan, leading to the issuance of 88,73,720 equity shares at a premium of Rs 4.65 per share in June 1996. The Oxo Alcohols plant's capacity was augmented by 6000 metric tonnes during 2000-2001. In 2007-08, a 2400 KVA Uninterrupted Power Supply System was installed and commissioned, operational from September 2006 to March 2007, resulting in an annual power cost reduction of Rs. 8 crore. The Modernization-cum-Optimization of the expanded Oxo Alcohols Plant commenced commercial production on May 1, 2010, boosting the installed capacity to 73,000 MTPA from the existing 39,000 MTPA.