Haldia Petrochemicals’ ₹6,000 crore phenol-acetone project to reduce India’s import dependence

Haldia Petrochemicals (HPL) is investing around ₹6,000 crore in a new phenol and acetone manufacturing facility through its 100% subsidiary AdPerma, which will significantly reduce India's import dependence on these key molecules used in industrial applications.

India’s phenol demand is estimated at 650,000–700,000 tonnes, against domestic production of only about 330,000 tonnes. Deepak Phenolics accounts for around 300,000 tonnes and Hindustan Organic Chemicals (HOCL) around 30,000 tonnes, with the balance largely met through imports.

“AdPerma will use HPL’s captive benzene and propylene to produce cumene, which will then be converted into phenol and acetone. The project will have the capacity to produce around 345,000 tonnes of phenol and 215,000 tonnes of acetone annually. For every tonne of phenol, around 0.6 tonnes of acetone is produced as a co-product,” explained Sanjiv Vasudeva, Chief Executive Officer of AdPerma.

HPL steps up its downstream chemicals push

The AdPerma project is currently in the pre-commissioning phase, with commercial production targeted by the end of 2026. The company expects to reach full capacity within about one quarter of commissioning.

The acetone market is similarly import-dependent, with India importing around 150,000–180,000 tonnes a year. The AdPerma project’s 215,000-tonne capacity is therefore expected to significantly contribute to import substitution.

Phenol is used in plywood, laminates, refractory applications and foundry resins, while acetone finds applications mainly as a solvent and in pharmaceuticals. Together, the Indian phenol and acetone market is estimated at around ₹15,000–20,000 crore, or about $2 billion, said Sanjiv Vasudeva.

India currently sources most of its imports from Southeast Asia, particularly Thailand, with additional supplies coming from Singapore, the Middle East and China. Around 50–60% of imports are estimated to come from Southeast Asia, 20–30% from the Middle East and about 20% from Northeast Asia.

HPL currently produces around one million tonnes of polymers and nearly 500,000–600,000 tonnes of chemicals at its Haldia complex. Its product slate includes polypropylene and polyethylene, besides benzene, MTBE, motor spirit, butadiene and propylene.

The project is also intended as the first step in HPL’s broader downstream strategy. Phenol can be further processed into bisphenol-A (BPA), epoxies, polycarbonate and other speciality chemicals. The company is evaluating several downstream opportunities and expects to take decisions on specific products and capacities after the phenol-acetone plant achieves scale.

“The whole intention with AdPerma is to maximise the return on the molecules that we currently produce at Haldia,” said Sanjiv Vasudeva, pointing to the economics of progressively moving downstream from basic petrochemicals into higher-value products.

AdPerma is located within HPL’s 1,120-acre Haldia complex, giving the company land to add further manufacturing units. The proposed chemical park being contemplated by the West Bengal government in Haldia could also support the development of a larger downstream chemicals ecosystem.

HPL’s integrated structure provides another advantage, with benzene and propylene available from its own operations. “The advantage we have over some of the other manufacturers is that we are backward integrated,” the company said, adding that captive feedstock provides both supply reliability and cost advantages.

In the longer term, HPL plans to expand into speciality chemicals, where India remains substantially import-dependent. The company estimates that 30–40% of India’s speciality and chemical requirements are still met through imports, particularly from China, Southeast Asia and the Middle East.