Manali Petrochemicals Ltd (MPL), India's leading integrated polyol manufacturer, has temporarily suspended operations at one of its Chennai-based plants following a sudden halt in propylene supplies from Chennai Petroleum Corporation Ltd (CPCL). In a disclosure to stock exchanges, MPL confirmed that operations at Plant-1 in Manali were suspended, following the complete cessation of propylene supply.

The disruption stems from a sovereign regulatory directive issued by the Government of India, requiring CPCL to prioritize crude oil processing for LPG production to ensure domestic fuel availability and strengthen national energy security amid significant disruptions to international supply chains caused by the Middle East conflict, including the closure of the Strait of Hormuz, through which nearly 50% of India's oil imports pass. India's domestic LPG consumption has surged over 43% in the past decade, rising from 21.6 million tonnes in FY2017 to 30.9 million tonnes in FY2026, further intensifying the need to secure LPG supplies. As a result, CPCL has ceased processing crude oil for other downstream petrochemical derivatives, including propylene—the primary and indispensable feedstock for MPL's operations, which it sources exclusively from CPCL.

The company stated that the likely impact of the ongoing force majeure event cannot be estimated at this time. Meanwhile, Plant-2 continues to operate using available feedstock inventory, and any further developments will be disclosed to stock exchanges as required.

As India's premier integrated manufacturer of Polyols and PO, MPL supplies innovative polyurethane raw materials and blended systems to diverse industries, including automotive, furniture, footwear, appliances, pharmaceuticals, paints, coatings, and food & fragrances. This force majeure is expected to impact feedstock availability for the downstream sectors that rely on its polyols supplies.