Haldia Petrochemicals Ltd., often referred to as HPL, is one of the largest petrochemical companies in India. HPL which began commercial production in 1984, has its headquarters located in Kolkata, West Bengal, India. It has a large petrochemical plant based out of Haldia in Eastern India. The company as of 2018 held the position of being the fourth largest player in the domestic petrochemical market and enjoyed a dominant position in Eastern India.[1]
History
The working of this industry was start from 1977
1985 Incorporated as a public limited company
1992 Environmental Clearance of the project received
1994 MOU signed between WBIDC, Chatterjee Fund Management, Soros Fund Management & Tata Group for implementation of HPL Complex through a joint venture company[1]
1996 Land Acquisition completed
1997 Project construction started
2000 Project got commissioned and trial production started[1]
2016 Set up HPL Global Pte Ltd in Singapore as first overseas wholly owned subsidiary
Financials
HPL reported a total income of Rs.10,165 crores during the financial year ended March 31, 2017 as compared to Rs.10,115 crores during the financial year ended March 31, 2016. The company has posted net profit of Rs.2,317 crores for the financial year ended March 31, 2017 as against net profit of Rs.1,579 crores for the financial year ended March 31, 2016.[1]
Expansion & acquisitions
Lummus Technology: Lummus Technology is a licensor of proprietary technologies in the refining, petrochemicals, gas processing and coal gasification sectors, as well as a supplier of proprietary catalysts, equipment and related engineering services. It has around 130 licensed technologies and more than 3,400 patents and trademarks. Haldia Petrochemicals Ltd (HPL) and Rhone Capital, a global private equity firm, in July 2020 jointly acquired US-based Lummus Technology from McDermott International. The enterprise value of the deal was estimated to be $2.725 billion (approximately ₹20,590 crore). HPL held close to 57 per cent of the enterprise value, amounted out to approximately ₹11,736 crore, to fund the acquisition. The deal was partly funded by equity and partly by debt. State Bank of India was the lead banker in the deal.[3][4]
Nagarjuna Oil Corporation Ltd.: NOCL's refinery project in Cuddalore was supposed to go on stream in 2012, but faced numerous delays, including in the form of a cyclone in 2011. Time and cost overruns resulted in the project cost escalating to ₹15,000 crore from ₹3,500 crore. A consortium of 17 banks, that funded the project, was to have brought in an additional ₹7,000 crore debt as part of a restructuring plan. However, it did not materialize and insolvency proceedings were initiated against NOCL. The project was one of the biggest for Tamil Nadu and the state government had offered tax incentives during the global investors meet held in 2015. National Company Law Tribunal had ordered liquidation of NOCL in 2018, after resolution plans failed to materialize. Later, HPL submitted a resolution plan. The NCLT, Chennai in March 2021 approved the resolution plan submitted by Haldia Petrochemicals for NOCL.[5][6]
Coastal Oil & Gas Infrastructure: HPL in February 2022 emerged as a successful bidder for Coastal Oil & Gas Infrastructure Pvt. Ltd. (COGIL), a special purpose vehicle of Nagarjuna Oil Corporation Ltd (NOCL), which was acquired by HPL in a liquidation process in 2021. HPL was among the two resolution applicants to have submitted their resolution proposals for acquiring COGIL through the corporate insolvency resolution process. BOMS Private Limited was the other resolution applicant.[7]
