Haldia Petrochemicals Ltd (HPL) is evaluating a proposal to establish a polycarbonate manufacturing facility in Bengal, with an estimated investment exceeding $1 billion (₹8,700 crore).
The company plans to utilize available land at its existing Haldia manufacturing site for the project, marking a significant expansion into the chemical downstream sector.
Polycarbonate, a key thermoplastic known for its heat, impact, and chemical resistance, is widely used in the automotive and packaging industries. Currently, India relies entirely on imports to meet its polycarbonate demand.
Backward Integration Strategy
HPL’s strategic move aligns with its ongoing development of a ₹5,000 crore phenol and acetone plant at Haldia, expected to be operational by mid-2026. These chemicals serve as essential raw materials for polycarbonate production, enabling greater self-sufficiency and reducing reliance on imports.
“India remains a major consumer of chemicals, many of which are still imported. Polycarbonate, a key downstream product of phenol, falls into this category. As HPL is setting up a phenol production facility, we are now exploring the feasibility of a polycarbonate plant,” said Navanit Narayan, Whole-Time Director & CEO of HPL, in an interview with The Telegraph.
While Narayan did not disclose the exact investment figure, industry estimates place it at approximately $1 billion.
Technology and Funding Challenges
To execute the project, HPL must secure a technological partner, as polycarbonate manufacturing technology is closely guarded by a handful of global players. Leading producers include ADNOC-owned Covestro AG (Abu Dhabi), SABIC (Saudi Arabia), LG Chemicals (South Korea), and select firms from Japan and Taiwan.
Despite the petrochemical industry’s current downturn and HPL’s financial losses, funding for the project will depend on lenders’ confidence in its long-term viability and the import substitution potential of polycarbonate.
Boost to Bengal’s Economy
HPL is currently focused on fast-tracking its phenol and acetone plant, aiming for completion within 36 months. The project is expected to stimulate Bengal’s economy by fostering downstream industries and generating employment—similar to HPL’s pioneering impact on the state’s polymer sector 25 years ago.
The new phenol plant will be India’s largest, reducing dependence on imports and cutting logistics costs. A key beneficiary will be the plywood industry, which has a strong presence in Bengal.
Since phenol and acetone are primary components of Bisphenol A (BPA)—the main precursor for polycarbonate—the new facility positions HPL for significant value-chain integration, reinforcing its role in India’s petrochemical landscape.