Southern Petrochemical Industries Corporation Ltd (SPIC), which manufactures and sells urea, is initiating a capital expenditure program worth ₹970 crore to enhance urea production capacity and establish a green ammonia plant. The expansion involves upgrading SPIC’s existing urea plant to increase its capacity and setting up a green ammonia plant with a capacity of 150 tons per day.
The revamp aims to stabilize the plant and improve its efficiency. “The expansion underscores our dedication to increasing production capacity, diversifying our operations, and promoting sustainable growth,” stated Ashwin Muthiah, Chairman of SPIC and Founder Chairman of AM International.
Following the upgrade, SPIC’s urea production capacity will rise from 6.24 lakh tons to 9.12 lakh tons. Muthiah added, “We have nearly eliminated our naphtha purchases due to a stable natural gas supply. Transitioning from naphtha to natural gas as our raw material has improved plant efficiency. Overall, we have successfully reorganized our company, enhancing our balance sheet, converting to gas, and maximizing capacity”. As reported by businessline, Muthiah further noted that the company anticipates sustained growth in revenue and profit, driven by the capacity expansion, complete transition to gas-based operations, and a favourable market outlook.
