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MCC PTA India Corp. Pvt LTD.

Purified Terephthalic Acid (PTA), the raw material for various polyester products, is one of the core businesses of MCC. MCC, backed-up with the most advanced technology in the world, has PTA plants in Japan, Korea and Indonesia. Over the years, as a major player, it has consolidated its status as a leader in the global PTA market. Since India had been one of the most attractive and potential markets for the polyester products in 1990s, MCC initially tried to establish its foothold in the Indian PTA market through export from its bases in the other countries.

Following the growth of the PTA market in India and to cater to the needs of the customers directly, MCC intended to establish a PTA plant in India and Haldia, West Bengal was selected as the best location for such plant, in view of several advantages like :
Excellent Port facilities, as the gate way to India
Abundance of land
Availability of skilled human resources

MCC subsequently, in association with the government of West Bengal through West Bengal Industrial Development Corporation Ltd. (WBIDC) made its entry in India. MCC then, commenced construction of the plant in the second half of 1997 with the most advanced and finest technology in the world. At the same time, a company named "MCC PTA India Corp. Private Limited" (MCPI) was incorporated with its registered and corporate office at Kolkata, to implement and to carry out the construction, production and marketing activities of this Project. This has been the first major Japanese Foreign Direct Investment (FDI) project not only in the State of West Bengal but also in India.

The construction was completed on scheduled by the end of 1999. After the trial run for three months, MCPI successfully started commercial operation from April 2000.
Company Name: MCC PTA India Corp. Private Limited
Business: Manufacturing and selling " PTA" (Purified Terephthalic Acid)
Capacity: 470,000 tons per annum (after de-bottlenecking)
Plant Location: Haldia , Purba Midnapore, West Bengal.
Expected turnover: Rs. 11.0 Billion.
The PTA Market:
Today MCPI enjoys around 30% share in the Indian Market and the customers are spread all over the country. An expected growth of 5% - 8% per annum will definitely boost MCPI's performance in the years to come. Presently India produces 0.9 million ton Polyester Yarn, 0.6 million ton Polyester fibre, 0.2 million ton Polyester film and 0.3 million ton PET bottle resin.

MCPI enjoys the most competitive Px (Paraxylene - raw material to produce PTA) price as an arm of MCC Group's total sourcing of Px, the largest net buyer in the World.
Outline of Haldia Project:
MCPI has initiated a landmark journey towards the industrial resurgence of West Bengal. MCPI is an ISO 9001:2000 company having production capacity of 470,000 tons per annum. The plant is built on an area of about 212 acres at the northern end of Haldia industrial area, on the bank of Hooghly River. Additional land about 111 acres had been acquired to maintain the green belt as well as for future expansion.

The Company is self-contained in its power supply (25 MW) and other utilities except water, which is received through a dedicated pipeline from Basudevpur Water Works of Haldia Development Authority (HDA). A 13-km long dedicated pipeline has been drawn between Haldia Port and MCPI Plant to receive Paraxylene by ship, which is the major feed stock to produce PTA. The "zero date" of the project started in September 1997. The actual construction work at Haldia started in early 1998 as lot of site preparation activities were necessary including construction of long access road, land filling, piling and soil densification work.

The project was completed on schedule within the approved cost by December 1999 and is on stream since April 2000. The Company had already built two townships at Haldia for the officers and the staff for their comfortable stay with all amenities and recreation facilities. MCPI project has employed around 750 people in various categories.
FINANCIAL PERFORMANCE :
Despite constricted market condition since early 2002, the PTA market recorded significant recovery both in terms of demand and prices and in line with such upturn, business of MCPI also started showing positive indications.

Some of the highlights under the captioned subject are as under.
 
Date of Commercial Operation April 1, 2000
Total Amount of Investment Rs. 14.75 Billion
Paid-up Capital Rs. 6.13 Billion
Shareholders
Mitsubishi Chemical Corporation 66%
West Bengal Industrial Development Corporation Ltd. (WBIDC) 5%
Mitsubishi Corporation 9%
Nissho Iwai Corporation 8%
Tomen Corporation 5%
Marubeni Corporation 5%
Sumikin Bussan Corporation 2%
Debt Equity Ratio 1.40 : 1
Net Sales 2000 (Apr-Dec) Rs. 6.88 Billion
2001 (Jan - Dec) Rs. 9.98 Billion
2002 (Jan - Dec) Rs. 11.83 Billion
Export Ratio 20%
 
 
 
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