Plans major expansion at Cetex Petrochemicals Plant
25th November 2014, Chennai: Wayne Burt Capital is a deep value fund (backed by US & European PE Funds) with assets over $ 1 Billion USD, with interests and investments in the Oil & Gas, Petrochemicals and Aerospace Manufacturing sectors.
Wayne Burt Capital, targets large asset based businesses that are under performing and acquire them at significantly lower value than their intrinsic value and through effective asset management and financial restructuring unlock the value from these assets.
Wayne Burt has strategic relationships with: –
- Aerospace companies such as GE-Aviation, Pratt & Whitney and Rolls Royce;
- Oil & Gas companies such as Halliburton, Schlumberger, Baker Hughes, Chevron, Cameron etc.; and
- Petrochemical companies such as Shell, Chevron, Mitsui Chemicals, UNIVAR & Sojitz etc.
Addressing the media, Mr. T. G. S. Mahesh, President & CEO, Wayne Burt Capital said, Wayne Burt Capital & its associates acquired Cetex Petrochemicals Ltd in 2013. Cetex is an ISO 9001:2008, ISO 14001:2004 and BS OHSAS 18001:2007 certified organization, established in 1990 at Manali, in the petrochemical zone of Chennai by the RPG group. The state of the art manufacturing facility was established with technology from Edeleanu Gmbh, Germany, and is the only company in South East Asia manufacturing Methyl Ethyl Ketone (MEK) & Secondary Butyl Alcohol (SBA), a versatile petrochemical solvent.
Post-acquisition by Wayne Burt Capital, Cetex was transformed from a single product to a multi-product manufacturing company. Cetex management team comprises of technocrats from IITs & IIMs headed by Mr. Ilanahai, Managing Director. Cetex is a professionally managed company and has the state of art R&D facility headed by Mr. R. Kannan, Director Technology, which has developed several new products such as SBA, Citronellol, Degreasor, Cinnamic Alcohol, Cetol, Phenyl Propanol, Oximone etc. SBA is an intermediate product in the MEK process having versatile applications in the pharma and specialty chemicals segment. Further, Cetex is also expanding its presence in aroma & fine chemicals segment. Its major products find versatile applications in manufacture of paints, printing inks, adhesives, coatings, aroma chemicals and speciality intermediates in pharma & lube additive industries. Cetex has already signed up strategic partnership arrangements with Chevron Oronite, Singapore & USA and Mitsui chemicals Japan, & Sojith Japan for the marketing and off-taking of 50% of the total production for the export market.
Bolstered by market demand, Cetex has embarked on expanding its manufacturing facilities for SBA and MEK. Being the only plant in South East Asia, Cetex has increased the capacity of MEK from 4000 to 10,000 tons per annum and SBA from 6000 to 10,000 tons per annum. Mr. Gowthaman, Director – Projects said that the 100% MEK/SBA capacity expansion project was implemented in record 18 months’ time with technical &project implementation support from Pro-U engineering, USA regardless of delays due to weather & several other external factors. Cetex’s project team is now working on enhancing the MEK capacity further by another 5000 TPA.
In synergy with existing product portfolio, Cetex has also acquired state of the art 50,000 tons capacity MIBK(35,000 TPA)/MIBC (15,000 TPA) plant from Shell Chemicals, LLP, Houston along with technology, design and know how. The existing Shell plant in Houston has been dismantled and brought to India under technical assistance from Pro-U Engineering, USA . With the successful implementation of 100% capacity expansion of MEK/SBA project, the project team is confident of commissioning the Shell MIBK/MIBC project in by August 2016.
Cetex has strategic relationships with fortune 500 MNCs such as Chevron Oronite, Singapore& USA, Mitsui Chemicals Japan, Shell, Europe, UNIVAR Europe & Sojitz Japan etc. for its product distribution across the globe.
Mr. R. Krishnan, Director Finance said that the MEK /SBA project is funded by State Bank of India, Chennai and the MIBK/MIBC project is funded by Axis Bank, Mumbai and further added that post the implementation of these project, the company is poised to touch revenues of around INR 1,250 Crores per annum.