### **Overview** Mangalore Refinery and Petrochemicals Limited (MRPL) is one of India’s largest and most advanced integrated refining and petrochemical complexes, located on the west coast of Karnataka. Strategically positioned within the Mangalore Special Economic Zone (MSEZ), the company has evolved from a 'fuels-only' refinery into a diversified energy and chemicals enterprise focused on sustainability, digital innovation, and value addition. MRPL is a subsidiary of Oil and Natural Gas Corporation Limited (ONGC), and leverages its coastal location for flexible crude sourcing and export capabilities. --- ### **Strategic Positioning and Growth Drivers** #### **Core Strengths** - **Operational Flexibility**: MRPL's refinery can process over 95 crude oil grades (20–45 API), including heavy and sour crudes, enhancing resilience against global supply disruptions and cost fluctuations. - **High Utilization Rates**: The refinery operates at approximately **110% of its nameplate capacity**, demonstrating superior operational efficiency and energy optimization. - **Cost Competitiveness**: Benefits from low-cost feedstock, use of natural gas as fuel, and co-location of refining and petrochemical operations, which reduce logistics and production costs. - **Strategic Location**: Proximity to international crude supply routes enables shorter shipping distances, reducing freight costs and enhancing logistical advantage. #### **Integrated Petrochemical Expansion** - MRPL has transitioned into a **refinery-petrochemical integrated model**, with petrochemicals now constituting **10% of output** and projected to rise to **12.5%** through planned debottlenecking and capital investments. - Key petrochemical assets include: - **Polypropylene (PP) Unit**: Achieved full capacity of **440 KTPA**, with **FY 2024–25 sales reaching 473,000 MT**, a **23.2% YoY increase**—the highest in company history. - **Petrochemical Fluidized Catalytic Cracker (PFCC)**: Converts low-value refinery streams into high-value propylene, LPG, and gasoline. - **Aromatic Complex (via OMPL JV)**: Produces **900 KTPA para-xylene (PX)** and **273 KTPA benzene**, primarily for export markets in Northeast Asia, Middle East, Southeast Asia, and Europe. --- ### **Innovation & Sustainability Initiatives** #### **R&D and Digital Transformation** - **MRPL Innovation Centre** leads cutting-edge research in refining, petrochemicals, sustainability, and **Active Pharmaceutical Ingredients (APIs)**. - **AI/ML Implementation**: - First refinery in India to deploy **AI/ML-based Real-Time Optimization (RTO)** with **closed-loop control** on a commercial PFCC unit. - Real-time optimization via **digital twins** across polypropylene, catalytic cracking, and power units—improving yield, reducing off-spec production, and enhancing decision-making. - Predictive and prescriptive maintenance tools deployed across critical equipment (e.g., Recycle Gas Compressor), supported by vibration sensors. #### **Pharmaceutical Diversification** - **Iso-Butyl Benzene (IBB) Program**: - Granted a **US patent** for an in-house developed process to produce IBB—a key intermediate in painkiller Brufen—using low-value refinery toluene and a novel catalyst. - Pilot cum Demo Plant (200 TPA) under development, targeted for commissioning in **Q1 FY 2025–26**. - Developing APIs from refinery streams to support India’s domestic pharmaceutical manufacturing. #### **Sustainability & Circular Economy** - **PET Depolymerization Technology**: - In collaboration with **CSIR-NCL**, MRPL developed and patented a process to recover high-purity monomers from plastic waste. - Pilot plant scheduled for commissioning by **end-2025**, supported by a **₹6.67 crore grant from OIDB**. - **Green Hydrogen Initiative**: Plans to replace grey hydrogen with **green hydrogen** in refining processes, freeing up naphtha for petrochemical feedstock. - **Biofuels Roadmap**: - **Bio-ATF (Aviation Turbine Fuel)** project underway, with commercial production expected by **2026–2027**, aligning with international SAF mandates. - Exploring second-generation biofuels and chemical recycling. #### **Environmental Performance** - Developed a patented **Photo-Catalytic Deodorizing Unit (DeoU)** that eliminates refinery off-gas odors **without chemicals**, improving environmental compliance. --- ### **Commercial and Retail Expansion** #### **Retail Network Growth** - **Aggressive Retail Strategy**: Aiming to establish **1,000 retail outlets** over the medium term, targeting **1 million tons of annual fuel sales** (MS & HSD) to create a major profit center. - As of FY 2024–25: - **167 operational HiQ retail outlets** across **Karnataka, Kerala, and Tamil Nadu**. - Commissioned **66 new outlets in FY 2024–25**, following **31 and 32 outlets in prior years**. - Entered **Tamil Nadu** with 3 outlets; expansion into **Andhra Pradesh** initiated via a dealer partnership model. - Retail sales (May 2024): **154,000 kiloliters** across 103 outlets, generating **₹76 crores over Retail Trade Price (RTP)**, with average sales per outlet above industry norms. #### **Direct and Export Sales Leadership** - Maintains a **dominant market share in direct B2B sales** of key products in Karnataka and neighboring states: - Bitumen, Diesel, Sulphur, Petcoke, Xylenes, Polypropylene, and ATF via joint venture. - **Domestic Sales Volume (FY 2022–23)**: Reached **2.3 MMT**, valued at **₹13,428 crores**, up from ₹11,033 crores the previous year. - **Polypropylene Exports**: Expanded to **nearly 16 countries**, including African markets; introduced niche grades like **Raffia GP (4.5 MI)** and **medical-grade PP (35 MI HY035R)** for masks and PPE. --- ### **Joint Ventures and Strategic Collaborations** #### **Shell MRPL Aviation Fuel and Services Limited (SMAFSL)** - A 50:50 JV with Shell, focused on **Aviation Turbine Fuel (ATF)** distribution. - **FY 2024–25 Turnover**: **₹2,549 crores**, a **22.2% increase** from ₹2,087 crores in FY 2023–24. - Expanded market share across **South Indian airports**, building trust and long-term partnerships in the aviation sector. #### **Mangalore Special Economic Zone (MSEZ)** - Spread across **1,607 acres**, with **~85% area leased** and **10 operational industrial units** (including MRPL’s aromatic complex, Syngene, ISPRL). - Attracted **over USD 2 billion in investments** and generated **exports exceeding USD 3.2 billion**. - Provides utility infrastructure (power, water, effluent treatment, pipelines) and supports ecosystem growth. #### **R&D Partnerships** - Collaborates with **CSIR-National Chemical Laboratory (CSIR-NCL)**, **IIT-Guwahati**, and **NITK Surathkal** on innovations in AI, plastic recycling, and API development. --- ### **Intellectual Property and Recognition** - **Patent Portfolio**: **29 patents filed**, with **12 granted** (as of Aug 2025), including technologies in: - AI-driven process optimization (2 filed), - IBB synthesis, - PET depolymerization, - DeoU design. - Recognized for **first-of-its-kind R&D outcomes**, including India’s first closed-loop AI-controlled PFCC unit.