Marel Q1 2024 Investor Presentation from May 8, 2024
Report on roi final
1. About company
Jamnagar Manufacturing Division is located near Jamnagar, Gujarat. It comprises of a petroleum refinery and
associated petrochemical plants. The refinery is equipped to refine various types of crude oil (sour crude, sweet
crude or a mixture of both) and manufactures various grades of fuel from motor gasoline to Aviation Turbine Fuel
(ATF). The petrochemicals plants produce plastics and fiber intermediates.
Created in a record time of less than three years, the Jamnagar Manufacturing Division would always remain a
special experience for Reliance. The project is of titanic proportion and has taken, for its completion, millions of
engineering man-hours spread over many international engineering offices; thousands of tonnes in equipment and
material, procured from leading suppliers across the globe; highly advanced construction equipment of unbelievable
sizes; construction workforce of over 75,000 working round the clock for months; a great number of innovative
techniques in project execution; and project management expertise of Reliance acquired over the past several years.
With a Complexity Index of 11.3 (as defined by the Nelson Complexity Index) RIL's refinery at Jamnagar is able to
process heavy and sour crude oils to produce high value products. This allows the Company to benefit from the lower
input cost compared to light crude oils.
The Jamnagar Manufacturing Division has 33 - million tons per annum refinery that is fully integrated with
downstream petrochemicals units which manufacture naphtha-based aromatics as well as propylene-based
polymers.
Situated on the northwest coast of India, the integrated refinery-cum petrochemicals complex is located at
Motikhavdi, Lalpur Taluka, Jamnagar District, in the state of Gujarat. It is in proximity to the Gulf of Kutch, a sheltered
bay close to the Middle-East crude oil sources. The location of RIL's refinery on the west coast of India supported by
world-class logistics and port facilities provides the Company with freight advantages. Most of the crude imported is
transported on Very Large Crude Carriers ("VLCC").
The refinery has operated at near 100% utilization with minimal downtime, consistently outperforming the average
utilization rates of refineries in the Asia Pacific region, the European Union and North America, as reported by PEL
Market Services, Biannual Refining Report, July 2005. With a Complexity Index of 11.3 (as defined by the Nelson
Complexity Index), the refinery has achieved Gross Refining Margins ("GRMs") that are consistently higher than the
benchmark Singapore complex margins. In addition to the operating efficiencies achieved by this refinery, it is also
differentiated from other global refineries in terms of its ability to take advantage of the light/heavy crude price
differential.
The existing refinery complex at Jamnagar has more than 50 process units, which together process the basic
feedstock, crude oil, to obtain various finished products deploying the following major refining processes:
• Crude oil distillation (Atmospheric as well as vacuum distillation)
• Catalytic cracking (Fluidised Catalytic Cracker)
• Catalytic reforming (Platforming)
• Delayed Coking
2. Special features of the refinery complex :
Reliance refinery configuration is characterized by its superior product slate as compared to that of the other
refineries. Two important features in this regard are:
• High proportion of high-value products such as propylene and LPG (adding to over 10% on crude processed
as compared to 2-3% for most other refineries)
• Nil production of low-value "black oils" - fuel oil (compared to 12-20% on crude processed for most other
refineries) under normal circumstances.
Process technologies:
All process units of the Jamnagar Manufacturing Division are based on state of the art technologies. Some of the
major technologies are:
• Hydrodesulphurisation : UOP
• Catalytic Reforming Unit : UOP
• Fluid Catalytic Cracking Unit : UOP
• Delayed Coker Unit : Foster Wheeler Inc.
• Sulphur Recovery : Black & Veatch Pritchard
• Hydrogen Generation : Linde A G
• Merox Treating : UOP
• SHP / TAME* : UOP
* (Selective Hydrogenation Process / Tertiary Amyl Methyl Ether)
All process units in the Jamnagar Manufacturing Division, the largest grass-roots refinery complex in the world, are of
world-scale sizes. In fact, some of the process units are the largest operating units in the world. A few examples are:
• Delayed Coking unit
• Fluidised Catalytic Cracking unit
• TAME (Tertiary Amyl Methyl Ether) unit
The new SEZ refinery
RIL's new refinery in the Special Economic Zone at Jamnagar, is the world's sixth largest and has a Nelson
Complexity Index of 14.0, making it the largest and most complex refinery globally. The refinery has a capacity of
processing 580,000 barrels of crude oil per stream day (BPSD. In addition to size and complexity, the SEZ refinery
has several advantages:
• Ability to process challenged crude varieties
• Able to produce Euro V grades of gasoline and diesel
• Highly competitive operating cost due to advantages of scale, technology and operational synergies
3. • Capability to produce alkylates - a premium gasoline blend component. It will have the flexibility to maximize
production of alkylate by converting butane to isobutene
All key processing units, including the Fluidised Catalytic Cracking Unit (FCCU), Vacuum Gas Oil (VGO), Hydrogen
Manufacturing Unit (HMU), Diesel Hydro De-Sulphurisation (DHDS), Propylene Recovery Unit (PRU), Coker unit and
the Polypropylene complex are operating close to their respective design capacities. All the support units and utilities
are fully operational and presently the refinery is operating at its design capacity.
The refinery has successfully processed more than 20 types of crude oils, including difficult crude oils within a few
months of its start-up, thus reflecting superior quality of assets and capabilities. Exports have commenced to 26
countries, including to the US and Europe.
Polypropylene Plant :
The Polypropylene plant at Jamnagar has a huge capacity of 1030 KTA of Polypropylene producing a wide range of
grades that cater to an equally diverse range of sectors which include Raffia, Films (BOPP/IPP), Injection Moulding,
Extrusion, Fibre etc.
The new PP line in the SEZ facility resulted in additional capacity of 900 KTA.