About
Mangalore Refinery And Petrochemicals Ltd
Mangalore Refinery and Petrochemicals Limited (MRPL), is a Schedule A' Miniratna, Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum & Natural Gas (MoP&NG), Government of India (GoI). The Company is engaged in the business of refining of crude oil. It is a subsidiary of Oil and Natural Gas Corporation Limited (ONGC), which holds 71.63% equity shares. The Company's 15 million metric tonne (MMT) refinery is located North of Mangaluru City, in Dakshina Kannada Dist. of Karnataka.
MRPL, with its parent company ONGC, owns and operates ONGC Mangalore Petrochemicals Limited (OMPL), a petrochemical unit capable of producing 1 Million Tonnes of Para Xylene. OMPL, situated in the adjacent Mangalore Special Economic Zone (MSEZ), is integrated with the refinery operations. Para Xylene from OMPL is sold in the export market.
Shell MRPL Aviation Fuels and Services Limited (SMA), a 50:50 joint venture between MRPL and Shell Gas B.V. (Shell), a step down subsidiary of Royal Dutch Shell Plc, Netherlands markets aviation turbine fuel (ATF) to airlines, both domestic as well as International carriers. SMA currently procures ATF from MRPL Refinery Complex, and supplies at Bengaluru, Goa, Mangalore, Hyderabad, Chennai, Calicut and Madurai. SMA also services International Carriers through alternative supply arrangement at Mumbai, Delhi and Kolkata.
MRPL was incorporated in 7th March of the year 1988 and commenced a business in 2nd August as a joint venture oil refinery promoted by Hindustan Petroleum Corporation and Indian Rayon & Industries Limited (IRIL) & Associates (AV Birla Group). The Company made a mega Public Issue consisting 4,31,60,000 16% Secured Redeemable Partly Convertible Debentures (PCDs) of Rs.135/- each aggregating to Rs.582.66 crores in the year 1993 and also 2,80,00,000/- 17.5% Secured Redeemable Non Convertible Debentures of Rs.200/- each (with detachable Equity Warrants) aggregating to Rs.560 crores. During the same year MRPL tied up for the process technologies with internationally reputed technology suppliers. It commissioned a 45 MW cogeneration power plant in September of the year 1995. MRPL commissioned its three million tonnes refinery towards the end of 1995-96 and it has been operating at more than 100 per cent capacity. In the year 1998, The Company had entered into an agreement with the National Securities Depository Limited (NSDL) to facilitate investors to hold the Shares in the electronic form. MRPL signed a crude-sourcing deal with the Chevron-Texaco combine in the year 1999.
During the year 2000, the company and Reliance Petroleum had entered into First World markets with Petro-products like motor spirit at prices, which are not only competitive but have also contributed to the bottom lines of these companies. MRPL had enhanced its refining capacity to 12 million tonnes through a cost-effective process of debottlenecking some units. ICRA had downgraded the non-convertible debenture program in the year 2001 and also the partially convertible debenture programme of the company. The refining capacity was expanded to 9 MMT p.a from 3 MMT p.a in April of the year 2001 and commercial production started during the year.
In 2003, ONGC and MRPL had signed a Memorandum of Understanding for the supply of crude oil. As at 28th March of the year 2003, ONGC acquired the total shareholding of 37.39% held by A.V. Birla Group and further infused equity capital of Rs.600 crores consequently made MRPL a majority held subsidiary of ONGC. The Company had contributed Rs 20 crore to New Mangalore Port Trust towards construction of new jetty at the port for exclusive use of the company. Further it is participating as an equity shareholder in the 364 km long cross country multi product Mangalore-Hassan-Bangalore pipeline which will help the company in accessing wider consumption areas for its products. The Hassan-Bangalore Pipeline project of 367 KM long was operational and the first parcel of HSD was transported through this pipeline and was delivered at Bangalore on 1st August of the year 2003. The Centre for High Technology (CHT) selected the MRPL for the Jawaharlal Nehru centenary awards under energy performance of refineries for the year 2003-04. Shell made tie-up with MRPL for Petro products in the year 2004. During the year 2004-05, based on the MOU with ONGC the company purchased 3.7 MMT Mumbai High Crude on pricing formula applicable to other PSU Refineries. MRPL had signed a pact with Saudi, Iran firms for crude supply in the year 2005, also in the same year; the company had forged alliance with Ashok Leyland for retail outlets.
The Company forged alliance with Abu Dhabi firm in the year 2006 and MRPL had inked an agreement with Mauritius Company. In the identical year ICRA Ltd had assigned an Issuer Rating of IR AAA to the company. During the year 2006-07, the company took implementation of a large Refinery Upgradation and Expansion project at a cost of Rs.7943 crore. For Aromatics Project worth of Rs.4852 crore, ONGC and MRPL had incorporated a Joint Venture company under the name of ONGC Mangalore Petrochemicals Ltd (OMPL). In July of the year 2007, The Company had entered into a contract with State Trading Corporation (STC), Mauritius to supply petroleum products and also in the same year, in September, MRPL had signed a 4-year product supply agreement (extendable by another two years) with Shell India Marketing. As at January 2008, MRPL along with Shell Aviation made a landmark agreement for the purpose of entering an exclusive joint venture to market and supply aviation fuel. MRPL sold its first spot cargo to Iran in April 2008.
On 23 June 2008, ONGC and MRPL announced withdrawal from Kakinada Refinery & Petrochemicals Limited (KRPL) and Kakinada Special Economic Zone (KSEZ) Projects. The Management of Oil and Natural Gas Corporation Ltd (ONGC) and its subsidiary Mangalore Refinery & Petrochem Ltd (MRPL) has been considering ways and means to establish a Greenfield refinery in the SEZ at Kakinada. There have been various issues affecting the steering of Projects of Kakinada Refinery & Petrochemicals Ltd (KRPL) and Kakinada Special Economic Zone (KSEZ). Considering these various factors, the Management of ONGC and MRPL feel that it will be appropriate not to continue as equity partners in these two projects. Accordingly in the meeting of Board of Directors of KRPL and KSEZ held on 23 June 2008, the Management of ONGC and MRPL has informed that they have decided to withdraw from the two Projects with immediate effect. ONGC's proposed equity participation, through its subsidiary MRPL, was 46% in KRPL and 26% in KSEZ.
The Board of Directors of ONGC at its meeting held on 23 July 2009 approved the Investment proposal of MRPL for installation of a Polypropylene unit integrated with the MRPL Phase-3 complex facilities, which is under implementation, with an estimated Capex of Rs 1803.78 crore. The Project envisages value addition through conversion of Polymer grade propylene produced from the Petrochemical Fluidised Catalytic Cracking Unit (PFCCU) being implemented under the Phase-3 Refinery Project to Polypropylene. The nameplate capacity of the Polypropylene plant is 440,000 TPA. The completion of Basic Design Engineering package and execution of the project is targeted in 30 months. The Polypropylene produced from MRPL complex would help in bridging the gap between supply and demand in the southern region of India.
The MRPL Board in its meeting held on 16 February 2010 decided to increase the name-plate capacity/installed capacity of its refinery (Phase- I and Phase- II units) from the existing 9.69 MMTPA to 11.82 MMTPA considering the successful utilization of Design Margins available in the units over a period of 4 years. The cost of the expansion project is estimated at Rs 12412 crore. The mega Project will be funded through a 2:1 debt equity ratio. The equity portion will be financed using the MRPL internal accruals and the debt would be raised from the market.
With the commissioning of Crude and Vacuum Distillation Unit-III (CDU / VDU-III) on 29 March 2012, production went on stream from the Phase-III Refinery Expansion-cum-Upgradation Project of MRPL. Thus, the name plate capacity of MRPL Refinery went up to 15 MMTPA from 11.82 MMTPA.
On 6 June 2012, MRPL announced that it has been granted special tax incentives/concession package by the Karnataka state government for a period of 15 years comprising of entry tax, CST exemption and VAT deferment equal to 100% and 60% of eligible gross VAT for first 3 years and balance 12 years respectively. The entry tax on capital goods bought during construction is also exempted during project execution stage.
On 8 July 2013, MRPL announced that it has been upgraded from Schedule 'B' status to Schedule 'A' status by Department of Public Enterprises (DPE), Government of India (GOI) with effect from 4 July 2013. This implies greater autonomy to the management, growth in organizational hierarchy besides placing MRPL in a better position in the international competitive market.
On 2 September 2013, MRPL announced that it has successfully commissioned Single Point Mooring (SPM) system off Tannirbavi coast. This facility will enable the company to receive crude in Suez Max/VLCC vessels which in turn will give freight economics and allow access to West African and Latin American crudes. This facility will also decongest existing berth facility at NMPT port for enhanced capacity operation of the refinery and reduce the incidence of demurrage. This facility is also intended for crude receipt by the Indian Strategic Petroleum Reserve Limited underground cavern for storage of crude at Mangalore. Commissioning of the SPM is expected to improve the bottom line of the company
MRPL's Delayed Coker Unit (DCU) of 3 MMTPA, which is part of the Refinery Up-gradation cum Expansion Project, went on stream on 3 April 2014. With this the Fuel Oil production will come down drastically with corresponding increase in high value products.
On 27 August 2014, MRPL announced that the Petro Fluidized Catalytie Cracking (PFCC) Unit has been successfully commissioned on 27 August 2014 in Phase-III project of the Company and products are being routed to respective destinations. This will increase LPG, light distillates and production of Propylene which is a feed for Polypropylene Unit.
On 8 December 2014, MRPL announced that the company has obtained a bulk supply order of petcoke form M/S Ramco Cements Ltd. to supply 6000 metric tonnes of petcoke by barge from NMPT, Mangalore. This is the first major bulk supply of petcoke by barge.
The Board of Directors of MRPL at its meeting held on 9 February 2015 approved acquiring of major stake in ONGC Mangalore Petrochemicals Limited (OMPL). MRPL was holding 3% of the paid up equity of OMPL, which has been increased to 46% by purchasing fully paid up equity shares from individual shareholders.
On 28 February 2015, MRPL announced that ONGC Mangalore Petrochemicals Limited (OMPL) has become a subsidiary of the company. Following allotment of shares to MRPL by OMPL, MRPL is holding 51.002% stake in OMPL.
MRPL successfully started commercial production of Polypropylene from its Polypropylene (PP) Plant as part of its Phase III Refinery expansion and upgradation project on 18 June 2015. The plant has capacity to produce 4,40,000 TPA polypropylene. The Feed Stock for the Polypropylene plant, polymer grade propylene, is being produced from upstream Petrochemical Fluidised Catalytic Cracking Unit (PFCCU). With this, MRPL's Phase-III of refining expansion is fully completed.
The Board of Directors of MRPL at its meeting held on 8 July 2015 approved a Scheme of Amalgamation between the company, ONGC Mangalore Petrochemicals Limited (OMPL) and their respective shareholders and creditors for the amalgamation of OMPL into and with the company in terms of Section 391-394 of Companies Act, 1956 and other relevant provisions of the Companies Act, 1956 and Companies Act, 2013 (Scheme). OMPL is a subsidiary of MRPL, wherein MRPL holds 51% and Oil and Natural Gas Corporation Limited holds 49% of the issued, subscribed and paid-up share capital. OMPL is primarily engaged in developing and operating a green field petrochemical project consisting of an aromatic complex situated in Mangalore Special Economic Zone for production of Para-xylene and Benzene.
On 7 October 2015, MRPL signed a Memorandum of Understanding (MOU) with New Mangalore Port Trust (NMPT) to study the feasibility of setting up an LNG Re-gasification terminal at Mangalore.
In February 2018, MRPL inaugurated company owned company operated (COCO) retail outlet at Panambur, Mangalore. In March 2018, it commissioned its first dealer owned dealer operated (DODO) retail outlet at Mandya in Karnataka.
In 2019-20, MRPL started producing BS VI MS & HSD from September, 2019.
During the FY 2020-21, MRPL acquired the stake of ONGC in ONGC Mangalore Petrochemicals Limited (OMPL) and consequently, as on March 31, 2021, MRPL held 99.99% stake in OMPL.
The amalgamation of erstwhile Wholly Owned Subsidiary Company, ONGC Mangalore Petrochemicals Limited (OMPL) with Holding Company i.e., Mangalore Refinery and Petrochemicals Limited (MRPL) was made effective from 01 May, 2022.
During year 2021-22, the Company commissioned FCC Gasoline Treating Unit (FGTU) of 800 KTPA Feed capacity as part of its BS-VI Project, on 11 July, 2021. It commissioned Desalination Plant based on Reverse Osmosis Technology using Seawater with design capacity of 30 MLD process grade water, on 17 Dec'21. It commissioned Sulfur Recovery Unit (SRU-7) with design capacity of 185 TPD Sulfur production as part of its BS-VI Project, on March 28, 2022. 4 New HSD tanks, Beta Land with the capacity of 30200 KL each of gross storage capacity along with the New HSD coastal line to Jetty were commissioned during FY2021-22. Five new Crudes were processed including Tupi Crude (API-30.2) from Brazil, Amna Crude (API-37.2) from Libya, Egina Crude (API-27.6) from Nigeria, Basrah Medium Crude (API- 28.57) from Iraq and Baobab Crude (API22.6, High TAN) from Ivory Coast for the first time during the FY 2021-22.
During 2022-23, the Company commissioned 31 Retail Outlets during FY 2022-23 increasing the count to a total of 63 operational retail outlets as on 31.03.2023. The Company's Joint Venture Shell MRPL Aviation Fuel and Services Limited acquired business for sale of Aviation Turbine Fuel (ATF) at Indian airports in 2023. A 30 MLD Desalination Plant was commissioned at Sea Coast of Arabic Ocean. Visbreaker unit was operated as Feed Preparation Unit for Delayed Coking Unit (DCU). Aromatic complex was operated on reformate mode during the year. Revamp of Regenerator section of CCR-1 was commissioned in Jun' 23.
Mangalore Refinery And Petrochemicals Ltd
Chairman Speech
Dear Shareholders,
It is my privilege to present, on behalf of the Board of the Directors
of MRPL, the 35th Annual Report for the year 2022-23 to our valued shareholders
and also present few highlights for the year's performance.
Financial Performance
• Your Company achieved a turnover of RS. 1,24,686 Crore during
the financial year 202223 as against RS. 86,067 Crore during the financial year 2021-22.
• Your Company earned profit of RS. 2,637 Crore (profit after tax)
during the financial year 202223 against profit of RS. 2,954 Crore during the Financial
Year 2021-22.
• The Gross Refining Margin (GRM) for financial year 2022-23 was
9.88 $/bbl as against 8.60 $/bbl during the financial year 2021-22.
• Your Company secured "AAA" from ICRA and CRISIL for
RS. 2,560 Crore NCDs and "AAA" from CARE and India Rating (Fitch Group) for RS.
5,000 Crore NCDs.
Physical Performance
• Highest Gross Crude Throughput of 17.116 MMT was achieved
(Previous best was 16.23 MMT during 2018-19).
• Ever Highest Capacity Utilization of PFCC (117.9%) & DCU
(98.3%) were achieved during the year against the design.
• Aromatic complex was operated on reformate during the year based
on economics.
• Energy consumption in terms of MBN of 71.21 is the lowest.
(Previous best was 73.45 during FY 21-22).
• The Company has achieved 10.47% Ethanol Blending as part of EBP
vide Gazette Notification.
• The Company has reduced 3.05% Specific Energy Consumption over
previous year.
• 31 numbers of ROs were commissioned during the year.
• New Crudes namely Kuwait Super Light crude (Kuwait), Khafji
crude (Saudi), CPC BLEND (Kazakhstan), Okwuibome (Nigeria) were processed for the first
time.
• The Company has assessed the possible effect from COVID-19
pandemic / Russia-Ukraine War and ascertained that, there is no impact on the carrying
amounts of Property, Plant and Equipment, Inventories, Receivables and Other Current
Assets.
Safety
• Your Company successfully achieved ZERO Reportable Lost Time
Injuries (RLTI) for the FY 2022-23.
• Your Company achieved 1003 & 2711days without Reportable
Lost Time Injuries (RLTI) as on 31/03/2023 in case of Refinery and Aromatics respectively.
• Your Company bagged following safety awards:
• Gold award by Federation of Indian Chambers of Commerce &
Industry for excellence in Industrial Disaster Risk Management
• First prize in Karnataka State Level Safety award 2023
• MRPL Aromatic complex bagged "Karnataka State Level Safety
Award 2023" in the Petrochemical industries category, by Department of Factories
& Boiler
• Safety Audit of Refinery Complex and Aromatics Complex were
carried out by British Safety Council and OISD respectively for the year2022-23.
• Seven employees from Fire & Safety Department were
felicitated by the hon'ble Union Minister of State - Petroleum & Natural Gas and
Labour & Employment for bravely fighting the fire at MSEZ.
Direct Marketing
• Your Company continues to maintain major share in the direct
sales segment of petroleum products market in Karnataka and adjoining states. Your Company
maintained leadership position in its marketing zone for all direct sales products such as
Bitumen, Diesel, Sulphur, Petcoke, ATF (thru' JV), Polypropylene, Xylol (Xylenes) etc. The
total domestic sales volume of all products during FY 2022-23 has been 2.3 MMT with a
sales value of RS. 13,428 Crores against turnover of 1.9 MMT with a sales value of RS.
11,033 Crores in FY 2021-22.
• Retail marketing plan: Your Company successfully commissioned 31
retail outlets in FY 2022-23 increasing the count to a total of 63 operational retail
outlets as on 31.03.2023, with anotheRs. 20 retail outlets under advanced stages of
construction. Your company is continuously focusing on its retail expansion in the states
of Karnataka & Kerala and has drawn plans for release of dealer selection
advertisement in Tamil Nadu. Plans are in place for adding 150 new retail outlets every
year for the next 5-10 years and will be entering new geographical areas of Andhra Pradesh
and Telangana in near to medium term.
• Your Company's PP Production has once again achieved the 440
KTPA Name plate capacity with annual PP Sales of 434 KTPA during FY 2022-23. MRPL has been
continuously expanding its polymer footprints in the country by targeting Northern and
Eastern locations for garnering more volumes. In order to sustain and increase MRPL's
Market share in the core areas, 5 additional DCA cum CS were appointed in FY 2022-23.
• Your Company's Joint Venture Shell MRPL Aviation Fuel and
Services Limited has steadily acquired business for sale of Aviation Turbine Fuel (ATF) at
Indian airports. The company achieved a turnover of RS. 1,633.39 Crores during FY 2022-23
against turnover of RS. 673.19 Crores in the previous FY 2021-22.
Employee Relations
• Your Company holds its employees in the highest esteem and
accordingly follows the best in-class HR practices, reviews them periodically and strives
to further improve upon that. As a result, the employee relations continue to be cordial
and harmonious. As in the past years, this year too, MRPL is happy to report that not a
single man-hour was lost on account of any industrial disturbance in the year 2022-23.
Environment, Social Responsibility and
Sustainable Development
• Your Company envisages sustainability as a major driver for
building future readiness in a dynamic market environment. Taking cognizance of the social
and environmental challenges, MRPL is pursuing projects related to decreasing carbon foot
print by energy conservation, improving the energy efficiency in its processes, use of
renewable energy, sustainable water management by recycling/ use of treated effluent and
effective waste management through reduce, reuse and recycle initiatives.
• Your Company has bagged the prestigious award "The EEF
(Energy and Environment Foundation) Global Water Management and Conservation Company of
the Year 2022" and won "Greentech Intl. EHS Award 2023" for best practices
in EHS.
• Your Company has continued to produce renewable energy sources
like solar power to reduce our carbon footprint. In addition, we have implemented
energy-efficient technologies and practices to reduce our energy consumption. In FY
2022-23 total solar energy generated by MRPL was 10,293 MWh and total solar energy
consumed by the company was 17,895 MWh.
• MRPL is having a robust waste management system, which includes
recycling, reusing, and responsible disposal of hazardous waste. Hazardous waste generated
in Refinery Complex is co-processed through cement industries where it is used as
alternate source of energy. Spent catalyst is recycled through SPCB authorized recyclers
and precious metals are recovered. In FY 2022-23, 66.6% of total hazardous and
non-hazardous waste were recycled and re-used. Balance waste disposed to secured
landfilling TSDF.
• Your Company has implemented many watersaving measures. MRPL
invested in water treatment and recycling technologies to reduce water footprint. In FY
2022-23, 69.8% of ETP feed flow was recycled and re-used in the Refinery. To mitigate the
risk of river water as a single source of water, Rs. 30 MLD Desalination plant was
commissioned at sea Coast of Arabic Ocean. In addition to the de-salination plant, MRPL is
utilizing Mangalore city treated sewage water to reduce fresh river water conservation. In
FY 2022-23, total Mangalore city treated sewage water utilized in the refinery was
61,09,555 M3.
• Your Company has taken several greenbelt development and
compensatory afforestation initiatives to increase its green cover. MRPL has developed 50
acres of Greenbelt in Pilikula Biodiversity Park with approximately 4,000 numbers of
different western ghat plant species. MRPL has developed green belt in 25 acres at Bengre
near Thannirbhavi sea shore and raised approximately 4,000 numbers of plants saplings in
co-ordination with Karnataka Forest Department. 2,231 numbers of saplings were planted in
the refinery area during the FY 202223.
• Your Company has actively engaged with local communities to
promote sustainability awareness and educate them on the importance of responsible
environmental practices. These initiatives are part of MRPL's ongoing efforts to promote
sustainable practices throughout operations and value chain. MRPL has been honoured with
Platinum award of "Grow Care India Sustainability Award 2022" for various
initiatives under taken towards Sustainability.
I would like to acknowledge the support and guidance of the Government
of India, especially our administrative ministry "Ministry of Petroleum and Natural
Gas".
I also place on record my admiration for our employees for their
excellent contribution and to the Board of Directors for their expertise and guidance.
On behalf of the Board, I would also like to express my gratitude to
all our stakeholders for their continued support, patronage, trust and confidence.
Jai Hind
|
Sd/- |
Date : July 28, 2023 |
Arun Kumar Singh |
Place: New Delhi |
(Chairman) |
  Â
Mangalore Refinery And Petrochemicals Ltd
Company History
Mangalore Refinery and Petrochemicals Limited (MRPL), is a Schedule A' Miniratna, Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum & Natural Gas (MoP&NG), Government of India (GoI). The Company is engaged in the business of refining of crude oil. It is a subsidiary of Oil and Natural Gas Corporation Limited (ONGC), which holds 71.63% equity shares. The Company's 15 million metric tonne (MMT) refinery is located North of Mangaluru City, in Dakshina Kannada Dist. of Karnataka.
MRPL, with its parent company ONGC, owns and operates ONGC Mangalore Petrochemicals Limited (OMPL), a petrochemical unit capable of producing 1 Million Tonnes of Para Xylene. OMPL, situated in the adjacent Mangalore Special Economic Zone (MSEZ), is integrated with the refinery operations. Para Xylene from OMPL is sold in the export market.
Shell MRPL Aviation Fuels and Services Limited (SMA), a 50:50 joint venture between MRPL and Shell Gas B.V. (Shell), a step down subsidiary of Royal Dutch Shell Plc, Netherlands markets aviation turbine fuel (ATF) to airlines, both domestic as well as International carriers. SMA currently procures ATF from MRPL Refinery Complex, and supplies at Bengaluru, Goa, Mangalore, Hyderabad, Chennai, Calicut and Madurai. SMA also services International Carriers through alternative supply arrangement at Mumbai, Delhi and Kolkata.
MRPL was incorporated in 7th March of the year 1988 and commenced a business in 2nd August as a joint venture oil refinery promoted by Hindustan Petroleum Corporation and Indian Rayon & Industries Limited (IRIL) & Associates (AV Birla Group). The Company made a mega Public Issue consisting 4,31,60,000 16% Secured Redeemable Partly Convertible Debentures (PCDs) of Rs.135/- each aggregating to Rs.582.66 crores in the year 1993 and also 2,80,00,000/- 17.5% Secured Redeemable Non Convertible Debentures of Rs.200/- each (with detachable Equity Warrants) aggregating to Rs.560 crores. During the same year MRPL tied up for the process technologies with internationally reputed technology suppliers. It commissioned a 45 MW cogeneration power plant in September of the year 1995. MRPL commissioned its three million tonnes refinery towards the end of 1995-96 and it has been operating at more than 100 per cent capacity. In the year 1998, The Company had entered into an agreement with the National Securities Depository Limited (NSDL) to facilitate investors to hold the Shares in the electronic form. MRPL signed a crude-sourcing deal with the Chevron-Texaco combine in the year 1999.
During the year 2000, the company and Reliance Petroleum had entered into First World markets with Petro-products like motor spirit at prices, which are not only competitive but have also contributed to the bottom lines of these companies. MRPL had enhanced its refining capacity to 12 million tonnes through a cost-effective process of debottlenecking some units. ICRA had downgraded the non-convertible debenture program in the year 2001 and also the partially convertible debenture programme of the company. The refining capacity was expanded to 9 MMT p.a from 3 MMT p.a in April of the year 2001 and commercial production started during the year.
In 2003, ONGC and MRPL had signed a Memorandum of Understanding for the supply of crude oil. As at 28th March of the year 2003, ONGC acquired the total shareholding of 37.39% held by A.V. Birla Group and further infused equity capital of Rs.600 crores consequently made MRPL a majority held subsidiary of ONGC. The Company had contributed Rs 20 crore to New Mangalore Port Trust towards construction of new jetty at the port for exclusive use of the company. Further it is participating as an equity shareholder in the 364 km long cross country multi product Mangalore-Hassan-Bangalore pipeline which will help the company in accessing wider consumption areas for its products. The Hassan-Bangalore Pipeline project of 367 KM long was operational and the first parcel of HSD was transported through this pipeline and was delivered at Bangalore on 1st August of the year 2003. The Centre for High Technology (CHT) selected the MRPL for the Jawaharlal Nehru centenary awards under energy performance of refineries for the year 2003-04. Shell made tie-up with MRPL for Petro products in the year 2004. During the year 2004-05, based on the MOU with ONGC the company purchased 3.7 MMT Mumbai High Crude on pricing formula applicable to other PSU Refineries. MRPL had signed a pact with Saudi, Iran firms for crude supply in the year 2005, also in the same year; the company had forged alliance with Ashok Leyland for retail outlets.
The Company forged alliance with Abu Dhabi firm in the year 2006 and MRPL had inked an agreement with Mauritius Company. In the identical year ICRA Ltd had assigned an Issuer Rating of IR AAA to the company. During the year 2006-07, the company took implementation of a large Refinery Upgradation and Expansion project at a cost of Rs.7943 crore. For Aromatics Project worth of Rs.4852 crore, ONGC and MRPL had incorporated a Joint Venture company under the name of ONGC Mangalore Petrochemicals Ltd (OMPL). In July of the year 2007, The Company had entered into a contract with State Trading Corporation (STC), Mauritius to supply petroleum products and also in the same year, in September, MRPL had signed a 4-year product supply agreement (extendable by another two years) with Shell India Marketing. As at January 2008, MRPL along with Shell Aviation made a landmark agreement for the purpose of entering an exclusive joint venture to market and supply aviation fuel. MRPL sold its first spot cargo to Iran in April 2008.
On 23 June 2008, ONGC and MRPL announced withdrawal from Kakinada Refinery & Petrochemicals Limited (KRPL) and Kakinada Special Economic Zone (KSEZ) Projects. The Management of Oil and Natural Gas Corporation Ltd (ONGC) and its subsidiary Mangalore Refinery & Petrochem Ltd (MRPL) has been considering ways and means to establish a Greenfield refinery in the SEZ at Kakinada. There have been various issues affecting the steering of Projects of Kakinada Refinery & Petrochemicals Ltd (KRPL) and Kakinada Special Economic Zone (KSEZ). Considering these various factors, the Management of ONGC and MRPL feel that it will be appropriate not to continue as equity partners in these two projects. Accordingly in the meeting of Board of Directors of KRPL and KSEZ held on 23 June 2008, the Management of ONGC and MRPL has informed that they have decided to withdraw from the two Projects with immediate effect. ONGC's proposed equity participation, through its subsidiary MRPL, was 46% in KRPL and 26% in KSEZ.
The Board of Directors of ONGC at its meeting held on 23 July 2009 approved the Investment proposal of MRPL for installation of a Polypropylene unit integrated with the MRPL Phase-3 complex facilities, which is under implementation, with an estimated Capex of Rs 1803.78 crore. The Project envisages value addition through conversion of Polymer grade propylene produced from the Petrochemical Fluidised Catalytic Cracking Unit (PFCCU) being implemented under the Phase-3 Refinery Project to Polypropylene. The nameplate capacity of the Polypropylene plant is 440,000 TPA. The completion of Basic Design Engineering package and execution of the project is targeted in 30 months. The Polypropylene produced from MRPL complex would help in bridging the gap between supply and demand in the southern region of India.
The MRPL Board in its meeting held on 16 February 2010 decided to increase the name-plate capacity/installed capacity of its refinery (Phase- I and Phase- II units) from the existing 9.69 MMTPA to 11.82 MMTPA considering the successful utilization of Design Margins available in the units over a period of 4 years. The cost of the expansion project is estimated at Rs 12412 crore. The mega Project will be funded through a 2:1 debt equity ratio. The equity portion will be financed using the MRPL internal accruals and the debt would be raised from the market.
With the commissioning of Crude and Vacuum Distillation Unit-III (CDU / VDU-III) on 29 March 2012, production went on stream from the Phase-III Refinery Expansion-cum-Upgradation Project of MRPL. Thus, the name plate capacity of MRPL Refinery went up to 15 MMTPA from 11.82 MMTPA.
On 6 June 2012, MRPL announced that it has been granted special tax incentives/concession package by the Karnataka state government for a period of 15 years comprising of entry tax, CST exemption and VAT deferment equal to 100% and 60% of eligible gross VAT for first 3 years and balance 12 years respectively. The entry tax on capital goods bought during construction is also exempted during project execution stage.
On 8 July 2013, MRPL announced that it has been upgraded from Schedule 'B' status to Schedule 'A' status by Department of Public Enterprises (DPE), Government of India (GOI) with effect from 4 July 2013. This implies greater autonomy to the management, growth in organizational hierarchy besides placing MRPL in a better position in the international competitive market.
On 2 September 2013, MRPL announced that it has successfully commissioned Single Point Mooring (SPM) system off Tannirbavi coast. This facility will enable the company to receive crude in Suez Max/VLCC vessels which in turn will give freight economics and allow access to West African and Latin American crudes. This facility will also decongest existing berth facility at NMPT port for enhanced capacity operation of the refinery and reduce the incidence of demurrage. This facility is also intended for crude receipt by the Indian Strategic Petroleum Reserve Limited underground cavern for storage of crude at Mangalore. Commissioning of the SPM is expected to improve the bottom line of the company
MRPL's Delayed Coker Unit (DCU) of 3 MMTPA, which is part of the Refinery Up-gradation cum Expansion Project, went on stream on 3 April 2014. With this the Fuel Oil production will come down drastically with corresponding increase in high value products.
On 27 August 2014, MRPL announced that the Petro Fluidized Catalytie Cracking (PFCC) Unit has been successfully commissioned on 27 August 2014 in Phase-III project of the Company and products are being routed to respective destinations. This will increase LPG, light distillates and production of Propylene which is a feed for Polypropylene Unit.
On 8 December 2014, MRPL announced that the company has obtained a bulk supply order of petcoke form M/S Ramco Cements Ltd. to supply 6000 metric tonnes of petcoke by barge from NMPT, Mangalore. This is the first major bulk supply of petcoke by barge.
The Board of Directors of MRPL at its meeting held on 9 February 2015 approved acquiring of major stake in ONGC Mangalore Petrochemicals Limited (OMPL). MRPL was holding 3% of the paid up equity of OMPL, which has been increased to 46% by purchasing fully paid up equity shares from individual shareholders.
On 28 February 2015, MRPL announced that ONGC Mangalore Petrochemicals Limited (OMPL) has become a subsidiary of the company. Following allotment of shares to MRPL by OMPL, MRPL is holding 51.002% stake in OMPL.
MRPL successfully started commercial production of Polypropylene from its Polypropylene (PP) Plant as part of its Phase III Refinery expansion and upgradation project on 18 June 2015. The plant has capacity to produce 4,40,000 TPA polypropylene. The Feed Stock for the Polypropylene plant, polymer grade propylene, is being produced from upstream Petrochemical Fluidised Catalytic Cracking Unit (PFCCU). With this, MRPL's Phase-III of refining expansion is fully completed.
The Board of Directors of MRPL at its meeting held on 8 July 2015 approved a Scheme of Amalgamation between the company, ONGC Mangalore Petrochemicals Limited (OMPL) and their respective shareholders and creditors for the amalgamation of OMPL into and with the company in terms of Section 391-394 of Companies Act, 1956 and other relevant provisions of the Companies Act, 1956 and Companies Act, 2013 (Scheme). OMPL is a subsidiary of MRPL, wherein MRPL holds 51% and Oil and Natural Gas Corporation Limited holds 49% of the issued, subscribed and paid-up share capital. OMPL is primarily engaged in developing and operating a green field petrochemical project consisting of an aromatic complex situated in Mangalore Special Economic Zone for production of Para-xylene and Benzene.
On 7 October 2015, MRPL signed a Memorandum of Understanding (MOU) with New Mangalore Port Trust (NMPT) to study the feasibility of setting up an LNG Re-gasification terminal at Mangalore.
In February 2018, MRPL inaugurated company owned company operated (COCO) retail outlet at Panambur, Mangalore. In March 2018, it commissioned its first dealer owned dealer operated (DODO) retail outlet at Mandya in Karnataka.
In 2019-20, MRPL started producing BS VI MS & HSD from September, 2019.
During the FY 2020-21, MRPL acquired the stake of ONGC in ONGC Mangalore Petrochemicals Limited (OMPL) and consequently, as on March 31, 2021, MRPL held 99.99% stake in OMPL.
The amalgamation of erstwhile Wholly Owned Subsidiary Company, ONGC Mangalore Petrochemicals Limited (OMPL) with Holding Company i.e., Mangalore Refinery and Petrochemicals Limited (MRPL) was made effective from 01 May, 2022.
During year 2021-22, the Company commissioned FCC Gasoline Treating Unit (FGTU) of 800 KTPA Feed capacity as part of its BS-VI Project, on 11 July, 2021. It commissioned Desalination Plant based on Reverse Osmosis Technology using Seawater with design capacity of 30 MLD process grade water, on 17 Dec'21. It commissioned Sulfur Recovery Unit (SRU-7) with design capacity of 185 TPD Sulfur production as part of its BS-VI Project, on March 28, 2022. 4 New HSD tanks, Beta Land with the capacity of 30200 KL each of gross storage capacity along with the New HSD coastal line to Jetty were commissioned during FY2021-22. Five new Crudes were processed including Tupi Crude (API-30.2) from Brazil, Amna Crude (API-37.2) from Libya, Egina Crude (API-27.6) from Nigeria, Basrah Medium Crude (API- 28.57) from Iraq and Baobab Crude (API22.6, High TAN) from Ivory Coast for the first time during the FY 2021-22.
During 2022-23, the Company commissioned 31 Retail Outlets during FY 2022-23 increasing the count to a total of 63 operational retail outlets as on 31.03.2023. The Company's Joint Venture Shell MRPL Aviation Fuel and Services Limited acquired business for sale of Aviation Turbine Fuel (ATF) at Indian airports in 2023. A 30 MLD Desalination Plant was commissioned at Sea Coast of Arabic Ocean. Visbreaker unit was operated as Feed Preparation Unit for Delayed Coking Unit (DCU). Aromatic complex was operated on reformate mode during the year. Revamp of Regenerator section of CCR-1 was commissioned in Jun' 23.
Mangalore Refinery And Petrochemicals Ltd
Directors Reports
Mangalore Refinery And Petrochemicals Ltd
Company Background
| Incorporation Year | 1988 |
| Registered Office | Mudapadav Kuthethoor,P O Via Katipalla
Mangalore,Karnataka-575030 |
| Telephone | 91-824-2270400,Managing Director |
| Fax | 91-824-2273300 |
ARUN KUMAR SINGHM Venkatesh| Company Secretary | |
| Auditor | Ram Raj & Co/Sankar & Moorthy |
| Face Value | 10 |
| Market Lot | 1 |
| Listing | BSE,MSEI ,NSE, |
| Registrar | Link Intime India Pvt Ltd
C-101 247 Park,L B S Marg,Vikhroli West,Mumbai-400083 |
Mangalore Refinery And Petrochemicals Ltd
Company Management
| Director Name | Director Designation | Year |
|---|
| ARUN KUMAR SINGH | Chairman & Non Executive Dir. | 2023 |
| M Venkatesh | Managing Director & CEO | 2023 |
| Sanjay Varma | Executive Director | 2023 |
| Pomila Jaspal | Nominee | 2023 |
| S Bharathan | Non Executive Director / Nominee | 2023 |
| Rohit Mathur | Non Executive Director / Nominee | 2023 |
| Raj Kumar Sharma | Independent Non Exe. Director | 2023 |
| Nivedida Subramanian | Independent Non Exe. Director | 2023 |
| Manohar Singh Verma | Independent Non Exe. Director | 2023 |
| Pankaj Gupta | Independent Non Exe. Director | 2023 |
| RAJINDER KUMAR | Nominee (Govt) | 2023 |
Mangalore Refinery And Petrochemicals Ltd
Listing Information
| Listing Information |
|---|
| BSE_500 |
| BSE_PSU |
| CNX500 |
| BSESMALLCA |
| CNXSMALLCA |
| BSEALLCAP |
| BSEENERGY |
| SML250 |
| MSL400 |
| NFTYMSC400 |
| NFTYSC250 |
| NF500M5025 |
| NFTYTOTMKT |
Mangalore Refinery And Petrochemicals Ltd
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Petroleum Refinery Products | NA | 0 | 0 | 0 | 57378.034 |
| Crude Oil and Other Products | NA | 0 | 0 | 0 | 3350.212 |
| Sale of Scrap | NA | 0 | 0 | 0 | 15.291 |
| Facilitation Charges | NA | 0 | 0 | 0 | 5.714 |
| Price Reduction Schedule | NA | 0 | 0 | 0 | 2.287 |
| Sale of Products | NA | 0 | 0 | 0 | 0 |
| Other operating revenues | NA | 0 | 0 | 0 | 0 |
| Discount on Refin. Transfer Pr | NA | 0 | 0 | 0 | 0 |