GAIL Polyethylene Business Registered a Loss of INR 85.1 Million
- Journalist: Jaideep
According to a 3rd Quarter result of GAIL (India) Limited for FY2020, loss of 85.1 Million was recorded in the Polyethylene business. The Polyethylene division of GAIL primarily include products such as HDPE, LLDPE and mLLDPE, finding various applications in automotive in textile industry. The reported loss is mainly a consequence of consistent slump in margins of Natural Gas, LPG as well as Hydrocarbons. Furthermore, inventory built up of mLLDPE at the beginning of third quarter of FY 2020 made GAIL to slow down its profit margins by selling the commodity at a reduced price. This decline in profit is yet another reason for the slump in prices of Petrochemical derivatives by 22 per cent and liquid hydrocarbons by 17 per cent in comparison to the previous quarter. In order to boost its revenue from petrochemical division, the company is planning to revive its existing LPG plant by converting it into 500KTA Polypropylene complex.