Assam Petrochemicals Eyes Methanol, Formalin Expansion And Exports: Chairman

Guwahati: Assam Petrochemicals Limited is meeting new generation needs and has long drawn out its footmark by leveraging liberal manufacturing technologies and absorbing supportable responses. As the industry transitions towards greener alternatives, APL remains at the forefront, producing first-class methanol that can be mixed with conventional fuels to decrease releases.  

In this exclusive Business North East (BNE) interview, Bikul Ch. Deka, Chairman of Assam Petrochemical Limited (APL), discusses the company’s growth strategy, market outlook, sustainability initiatives and future growth plans.

Here are the excerpts from the interview:

BNE: How does Assam Petrochemicals position itself in the rapidly evolving petrochemical industry, particularly with the rise of green alternatives?

Bikul Ch. Deka: Assam Petrochemicals Limited has been on a journey for more than 50 years in petrochemical manufacturing and marketing. To stay competitive, APL has commissioned new methanol and formalin plants equipped with state-of-the-art manufacturing technologies.

Regarding green initiatives, the methanol produced by APL can be blended with diesel and petrol to power automobiles and marine vessels. Indian Oil Corporation Limited successfully conducted a pilot project to run vehicles on methanol-blended fuel. Similarly, Numaligarh Refinery Limited has operated a vessel on blended fuel in the Brahmaputra River. Blending methanol with petrol and diesel helps reduce greenhouse gas emissions, creating a cleaner environment.

BNE: What are the company’s key markets, and how do you see the demand for petrochemical products changing in the next five years?

Bikul Ch. Deka: APL produces the highest quality methanol available in the country. The unique selling proposition (USP) of our product is its exceptional purity and zero contamination during transit. India currently consumes approximately 25,000 metric tonnes of methanol per month, with 96 per cent of this demand met through imports. Given the current scenario, there is immense potential for domestic production, aligning with the "Make in India" initiative and the vision for an Atmanirbhar and Viksit Bharat.

In terms of marketing, APL supplies methanol to the eastern and northern regions of India. For formalin, we are the market leader in the entire eastern region. Additionally, we have been expanding our exports to Bangladesh. In the financial year 2024–2025, up until January 2025, we exported approximately 3,000 metric tonnes of methanol to Bangladesh. Our goal is to maximise methanol exports to Bangladesh, reaching up to 5,000 metric tonnes per month, provided geopolitical conditions remain favourable.

BNE: How does APL plan to compete with larger players in the Indian petrochemical sector?

Bikul Ch. Deka: APL’s portfolio consists of two key products—methanol and formalin. We are the sole company in India engaged in both the production and distribution of methanol. Additionally, we are the only methanol producer in North and East India. APL has imprinted out a niche market with a healthy supply chain.

Our competitive edge is further supported by a reliable supply of raw materials from Oil India Limited. Additionally, our strategic location near Bangladesh and other Asian countries presents significant export potential. Our nearness to these markets delivers us with a logistical benefit over opponents.

BNE: Are there any upcoming expansion projects or capacity enhancement plans in the pipeline?

Bikul Ch. Deka: The Company is in discussions with both domestic and foreign investors for the establishment of downstream product facilities. We also have plans to expand our existing portfolio. Our recently commissioned 500-tonne-per-day methanol plant is a key milestone, and we expect our formalin plant to be operational by April 2025.

BNE: What are the company’s strategies for diversifying its product portfolio?

Bikul Ch. Deka: We are actively exploring downstream value-added products. Preliminary discussions are ongoing, and we will make an official statement once the plans are confirmed.

BNE: How is APL planning to attract investment for its future growth?

Bikul Ch. Deka: APL is the only domestic methanol producer with a legacy spanning over 50 years. We have meaningfully expanded our production capacity, making us an attractive investment destination. Investors in value-added products are welcome to set up industries in the region, where they will benefit from assured stock supply, minimal lead times, and cost-effective distribution.

BNE: Given the global push toward sustainability, how is Assam Petrochemicals integrating eco-friendly practices into its operations?

Bikul Ch. Deka: In alignment with the government’s net-zero vision, for 2070, all of APL’s new plants are built using state-of-the-art technologies. They comply with all environmental norms and are designed to achieve zero waste discharge.

BNE: Are there any plans to transition towards bio-based or green chemicals?

Bikul Ch. Deka: We have not finalised any plans yet. However, the company is preparing a 15-year strategic roadmap, which we will disclose once it is finalised.

BNE: What steps are being taken to minimise the environmental impact of APL’s operations?

Bikul Ch. Deka: APL has implemented cutting-edge technologies to ensure zero liquid discharge in its production facilities. The company does not emit pollutants into the air. Additionally, methanol is a clean and green fuel that can be blended with diesel and petrol, leading to lower greenhouse gas emissions. We are also actively working on strategies to reduce our carbon footprint further.

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BNE: How has Assam Petrochemicals performed financially over the past few years?

Bikul Ch. Deka: APL performed well until the financial year 2021–2022, when natural gas prices were relatively low. However, since April 1, 2022, we have been facing challenges due to the rising cost of natural gas. We remain optimistic that better days will return soon.

BNE: What kind of government support and policies have helped APL grow?

Bikul Ch. Deka: APL is a Government of Assam enterprise and has remained a pillar of the state’s industrial landscape for the past 50 years. Under the leadership of Chief Minister Himanta Biswa Sarma, the Assam government has been highly supportive of our company.

BNE: Are there any plans to list the company on the stock exchange?

Bikul Ch. Deka: APL’s shares were first listed on the Mumbai Stock Exchange in 1975. It remained so until 2017, when we opted for delisting. We plan to relist our shares at an appropriate time with the approval of our promoters and the Government of Assam.

BNE: How does APL contribute to job creation in Assam and the Northeast?

Bikul Ch. Deka: APL is deeply committed to its socio-economic responsibilities. We prioritise hiring individuals from Assam and the Northeast, with most of our recruits coming from local technical and management institutions. Additionally, the company indirectly or directly supports over 1,000 local workers. Beyond business, we are dedicated to the socio-economic upliftment of the region.

BNE: Are there any collaborations with educational institutions for skill development in the petrochemical sector?

Bikul Ch. Deka: No.

BNE: What efforts are being made to upskill existing employees to match evolving industry needs?

Bikul Ch. Deka: The company places a strong emphasis on upskilling its workforce. We implement effective on-the-job training programs and facilitate knowledge-sharing between experienced and new employees. Additionally, we provide opportunities for employees to attend national and international events and seminars to gain industry exposure.