Manali Petrochemicals Ltd (MPL), is facing challenges due to rising input costs and decreased demand caused by an excess supply of imported petrochemical products. Ashwin Muthiah, Chairman of MPL, stated that imports have returned to pre-pandemic levels, leading to a significant drop in product prices compared to the past two years. This situation, combined with reduced demand for their products and increased foreign supplies, has created a substantial gap between supply and demand.
Muthiah also mentioned that MPL’s overall sales and profitability in FY23 were lower than in the previous two years, which were strong for the company. He attributed this decline to the continuous impact of escalating global commodity prices, driven by ongoing geopolitical complexities.
As reported by businessline, MPL specialises in the manufacturing of propylene glycol, polyether polyol, and related substances, which serve as raw materials in various industries such as automotive, appliances, construction, energy, defense, and soft furniture. In the previous fiscal year, MPL reported a standalone net profit of ₹51 crore, a significant decrease from ₹377 crore in FY22. Revenue from operations also dropped to ₹1,033 crore from ₹1,444 crore during the same period.
Muthiah mentioned that the global oversupply of petrochemicals is expected to reach a record 218 million tons in 2023. With uncertainties in the Chinese economy, Indian markets have become attractive targets for exporters, further driving up imports and causing a decline in product prices over the past two years.
