09-07-2015

MRPL proceeds with merger of ONGC Mangalore Petrochemicals

MRPL’s Board has approved the integration/restructuring of ONGC Mangalore Petrochemicals Limited its subsidiary company, in its 198th Board Meeting yesterday.

OMPL a green field petrochemical project at the Mangaluru Special Economic Zone, adjacent to MRPL’s own 15MMTPA Refining and  Petrochemical Complex. comprises an aromatic complex for production of Para-xylene and Benzene.

MRPL currently holds the controlling stake of 51% in OMPL while ONGC holds the remaining 49%.

The Merger is poised to create higher shareholder value over and above the sum of two companies. A classic case of one plus one  equals three.

Says Shri H Kumar, MD, MRPL, “ Dovetailing the operations will give us an edge in backward integration and the synergy will deliver tremendous advantages:

- Operation of the aromatic plant being integrated with the refinery will provide higherreturns for stakeholders, adding value to refinery product streams and flexibility to refinery to optimize its GRM;

- Optimal utilization of the plants of OMPL and the Company, which will maximize combined margins of refinery and petrochemicals in tune with market dynamics;

- Optimal utilisation of resources due to pooling of management, administrative and technical skills of various resources of both the companies, better administration, and cost reduction, including    reduction in managerial, administrative and other common costs; and

- Better alignment, coordination and streamlining of day to day operations of both the companies, leading to improvement in overall working culture and environment and value addition to the entire  group.”

“We are really upbeat about this merger “, he added.