ONGC PetroAdditions Shifts Focus to Local Market for Turnaround

ONGC PetroAdditions Ltd, a subsidiary of ONGC, is exiting its 'only-for-export' unit status to leverage the local petrochemical market, aiming for a financial turnaround. This strategic move aligns with gaining domestic market access and benefiting from a lower tax regime, amid financial challenges and high debt.

ONGC PetroAdditions Ltd, a subsidiary of the Oil and Natural Gas Corporation (ONGC), is making strategic shifts in its operation by exiting its 'only-for-export' unit status. The company is seeking to capitalize on the burgeoning local petrochemical market to drive a financial turnaround.

Official updates indicate that ONGC PetroAdditions received final approval to exit the Dahej Special Economic Zone (SEZ) and will operate as a Domestic Tariff Area (DTA) unit from March 8, 2025. This transition aims to boost OPaL's competitiveness within India's domestic market by eliminating customs duties on local sales, thus improving profit margins.

Faced with challenges such as high debt and unprofitable export markets, ONGC has intervened by providing significant financial support, increasing its stake in OPaL to 95.69%. The company continues to tackle market volatility through cost-efficiency, innovation, and strategic brand-building efforts.

(With inputs from agencies.)