Manali Petrochemicals Limited has announced entering into a Memorandum of Agreement (MoA) with Chennai Petroleum Corporation Limited (CPCL) for the utilization of loading facilities at its Plant-I located in Manali, Chennai. The agreement enables CPCL to handle its products through Manali Petrochemicals' existing infrastructure.

Agreement Details

The partnership arrangement involves the following key aspects:

Corporate Disclosure

Manali Petrochemicals Limited made this disclosure to both BSE Limited and National Stock Exchange of India Limited. The company clarified that while such intimation is not mandatory under SEBI Listing Regulations, 2015, the disclosure was made in the interest of good corporate governance and transparency.

Strategic Infrastructure Utilization

This agreement represents a strategic move by Manali Petrochemicals to optimize the utilization of its existing infrastructure. The Plant-I facility in Manali, Chennai, will now serve dual purposes - supporting the company's own operations while providing services to CPCL for product handling.

The partnership demonstrates the company's ability to leverage its infrastructure assets to generate additional revenue streams while maintaining operational efficiency. This arrangement also strengthens the relationship between two significant players in the petrochemical sector within the Chennai region.

Manali Petrochemicals Limited (MPL) has successfully concluded the sale of its step-down subsidiary, Notedome Limited, to C.O.I.M. S.p.A. - Chimica Organica Industriale Milanese (COIM) for approximately ₹247 crore (£21.17 million). This strategic divestiture, which was finalized on November 17, 2025, marks a significant corporate restructuring for the Chennai-based petrochemical manufacturer.

Transaction Details

Strategic Implications

The sale of Notedome Limited is part of Manali Petrochemicals' strategic portfolio restructuring initiative. This move is aimed at:

1. Sharpening focus on core businesses related to polyols product portfolio and derivatives within the Indian market.
2. Optimizing capital allocation, talent, and R&D efforts towards high-growth market segment products.
3. Creating flexibility for potential global mergers and acquisitions in more aligned sectors.

Despite the divestiture, MPL will continue to market its cast elastomers in India under a new trademark, maintaining its presence in this product category.

Impact on Corporate Structure

As a result of this transaction, Notedome Limited has ceased to be a wholly-owned step-down subsidiary of Manali Petrochemicals Limited, effective November 17, 2025. This change in the corporate structure allows MPL to streamline its operations and focus on its strategic priorities.

Management Perspective

Ashwin Muthiah, Chairman of MPL and Founder Chairman of AM International, Singapore, commented on the divestiture: "This move allows MPL to strategically focus our capital, talent, and R&D efforts on the current, high-growth market segment products with robust and scalable demand – in Automotive, Cold Chain, Construction, Footwear as well as Propylene Glycol derivatives."

Buyer's Stance

For C.O.I.M., this acquisition strengthens its international presence in the polyurethane systems sector and expands its product and service capabilities in key European markets. Giuseppe Librandi, CEO of C.O.I.M. S.p.A., stated that Notedome's expertise and strong reputation in cast elastomers complement C.O.I.M.'s portfolio and culture of innovation.

This strategic move by Manali Petrochemicals demonstrates the company's commitment to optimizing its business portfolio and focusing on high-growth areas within the petrochemical industry. As the transaction concludes, market observers will be keen to see how this restructuring impacts MPL's future growth trajectory and financial performance.