Chemical company Manali Petrochemicals Ltd (MPL) on Thursday said the company will invest Rs 100 crore to increase its capacity to produce polyols from the current 50000 TPA to 150,000 TPA.

The company said it will use an innovative technical process to produce additional Propylene Oxide (PO).

The brownfield investment will be phased through 4-5 years, the company said in a statement.

In a filing to the Bombay Stock Exchange, the company informed, “MPL to expand capacity to meet demand for polyols.”

Further, the first phase of expansion to 75,000 tonnes per annum would be complete by March 2016. Company has received the necessary approvals for this expansion, it added.

The subsequent phases, each with 25,000 tonnes capacity additions, would be commissioned every 12 months. Incremental turnover would be Rs 280-300 crore with every additional phase, MPL said.

This brownfield investment will help Manali Petro to produce cost-effective Propylene Oxide (PO) in manufacturing products like Polyurethane Foams (PU), which is extensively used in the automotive, construction, refrigeration and other industrial products.

Meanwhile, shares of the company closed at Rs 16.25 apiece, up 3.50 per cent, from previous close on BSE.