We are trying to expand our product base, says CPCL MD

H. Shankar | Photo credit: R. Ragu

Rejoicing in its recent Navratna status and increased financial ceiling, Chennai Petroleum Corporation Limited (CPCL) has begun efforts to expand its product base. “We are the only refinery in the country that produces fuels, lubricants and wax. We are exploring the possibility of improving the quality of the wax and bringing more variants of lubricants,” said H. Shankar, Managing Director, CPCL.

Speaking to The Hindu, Mr. Shankar said that the financial health of the company is very strong and because of Navratna’s greater freedom, it can quickly make proposals to the board.

Absorption capital

“It is a good time to start the process of moving towards new projects. We are able to absorb capital ourselves and have the power to borrow. After COVID-19, every one of our employees has focused on what we can do for the company. This is reflected in physical and financial performance.”

Waxes and lubricants would be the two products likely to be taken first to explore the possibility of adding value.

“Currently, we make wax for candles and packaging. We can tweak the product and bring better quality wax or variants that can be used in other industries. In the case of lubricants, we can add value like white oil that can be used in the cosmetics industry,” he said.

On the status of expansion of the refinery, which has a capacity of 10.5 million tonnes per annum, at Manali near Chennai, he said Engineers India is already working on a feasibility study for the same. “It’s one of the main projects we have in mind.”

“Secondary units, storage tanks, pipelines and other units need to be studied in a comprehensive way. Over the next six months or so, we will dive deep into what projects we will initiate and how to balance capacity expansion and value addition,” he said.

At the Cauvery Basin Refinery in Nagapattinam, Mr. Shankar said they are working on the configuration and figuring out how it can be constituted into a different model so that the company can get more return on investment.

Published – 15 Jul 2026 0:05 AM IST