Kothari Petrochemicals Limited (KPL) has announced plans to invest ₹74 crore to acquire land in Andhra Pradesh, supporting the company’s strategic expansion objectives. The investment was recently approved by the company’s Board, positioning KPL for long-term growth.
KPL currently operates a production facility in Manali, Chennai, with an annual capacity of 48,000 tonnes. For the 2024 fiscal year, the company reported a production volume of 40,782 tonnes of polyisobutylene (PIB), up from 32,640 tonnes in the previous year. PIB, a polymer derived from isobutylene, is widely used as an additive in automotive lubricants, transmission fluids, and adhesives, with particularly strong demand in the automotive sector.
KPL sources its raw materials from Chennai Petroleum Corporation Ltd (CPCL) and Reliance Industries Ltd (RIL), among others. The planned land acquisition is expected to facilitate additional capacity and capabilities in response to rising demand for PIB products across multiple industries.
In a statement, KPL indicated that the Andhra Pradesh expansion aligns with its strategy to strengthen its supply chain and tap into new markets in the polymer and petrochemical sectors. The land acquisition aims to enable the company to scale operations as it seeks to meet the growing demand for PIB-based products.