Haldia Petrochemicals Ltd (HPL) is preparing to strengthen India’s domestic chemical manufacturing capacity, with its wholly owned subsidiary, Adperma
Private Ltd, targeting commercial production of phenol and acetone at its Rs. 6,000-crore manufacturing complex in Haldia, West Bengal, by the end of December 2026. The facility is expected to significantly expand domestic availability of the two important chemical intermediates while reducing reliance on imported material.
According to a company statement issued on Wednesday, the new complex will have an annual production capacity of 345,000 tonnes of phenol and 215,000 tonnes of acetone. The project represents a major addition to India’s phenol and acetone manufacturing base and is expected to support downstream industries dependent on these raw materials.
The facility is India’s only integrated phenol and acetone manufacturing complex on the East Coast, according to the company. It is integrated with HPL’s existing petrochemical operations in Haldia and will utilise propylene and benzene as its primary feedstocks. Technology for the project has been licensed by Lummus Technology, providing the technological foundation for commercial-scale production.
The integration with HPL’s existing petrochemical complex is expected to strengthen feedstock availability and generate operational synergies. Its strategic East Coast location could also improve logistics and distribution efficiency for customers across eastern India and other domestic consumption centres.
Major Boost for Domestic Phenol and Acetone Supply
The commencement of commercial production could mark an important development for India’s downstream chemical industry, particularly manufacturers dependent on imported phenol and acetone. Phenol is a critical intermediate used in the production of phenolic resins, bisphenol A and several specialty chemicals. Its downstream applications include plywood, laminates, adhesives, moulded products, plastics and coatings. Increasing domestic availability could support manufacturers seeking more reliable access to raw materials for their production operations.
Meanwhile, acetone is widely consumed as a solvent in paints, coatings, adhesives and pharmaceutical formulations. It is also an important feedstock for manufacturing methyl methacrylate (MMA) bisphenol A and other chemical derivatives
The additional capacity could provide domestic buyers with an alternative to imported supplies, potentially reducing their exposure to international price fluctuations, freight costs, currency movements and overseas supply disruptions. However, the actual level of import substitution will depend on plant utilisation, product quality, pricing competitiveness and customer acceptance.
HPL Expands Its Specialty Chemicals Portfolio
The Rs. 6,000-crore investment represents a strategic expansion of HPL’s manufacturing portfolio into higher-value chemical intermediates. By entering the phenol and acetone segments at a substantial production scale, the company is positioning itself to serve multiple downstream industries, including engineered materials, adhesives, resins and specialty chemicals.
The plant was inaugurated on October 14 by West Bengal Chief Minister Suvendu Adhikari. The event was attended by HPL chairman Purnendu Chatterjee, HPL managing director and chief executive officer Navanit Narayan, and Adperma chief executive officer Sanjiv Vasudeva.
The project’s integration with HPL’s existing petrochemical operations is expected to provide advantages in feedstock sourcing and operational coordination. The use of licensed technology also highlights the importance of established process technologies in developing large-scale chemical manufacturing facilities.
December Commissioning to Be the Next Key Milestone
With commercial production targeted for the end of December 2026, attention will now shift towards commissioning, stabilisation and the gradual ramp-up of the facility. Consistent feedstock availability, operational efficiency, production economics and downstream demand will determine how quickly the plant reaches its intended capacity.
The addition of 345,000 tonnes per year of phenol and 215,000 tonnes per year of acetone capacity could reshape domestic sourcing opportunities for Indian chemical manufacturers. If the facility achieves stable operations and competitive pricing, it could strengthen supply resilience, reduce import dependence and support the expansion of India’s downstream chemical manufacturing ecosystem.
Product and Chemical Commodity Price Impact Analysis
The Haldia complex will strengthen India’s phenol and acetone supply chains by adding 345,000 tonnes/year of phenol and 215,000 tonnes/year of acetone capacity. Downstream manufacturers of phenolic resins, plywood, laminates, adhesives, paints, coatings and pharmaceutical formulations could benefit from improved raw material availability and potentially lower procurement costs.
For the Indian phenol market, additional domestic output may create downward price pressure and reduce import dependence. Acetone prices could also face moderation as local supply improves. However, the extent of price correction will depend on commissioning timelines, utilisation rates, propylene and benzene costs, import parity and downstream demand growth.
News Courtesy : chemanalyst