Chennai Petroleum Corporation Limited (CPCL), formerly known as Madras Refineries Limited (MRL), is a subsidiary of Indian Oil Corporation Limited which is under the ownership of Ministry of Petroleum and Natural Gas of the Government of India. The company was formed as a joint venture in 1965 between the Government of India (GOI), AMOCO, and National Iranian Oil Company (NIOC). Later, the Government of India transferred its equity to IndianOil, and CPCL became a subsidiary of IndianOil in 2001.
The present shareholders are IOCL, NIOC, and others holding 51.89%, 15.40%, and 32.71% shares respectively. Today, CPCL is one of the largest refining corporations in South India, with an installed refining capacity of 10.5 MMTPA built brick by brick with grit and determination. CPCL stands tall among the public-sector refining companies in India, with one of the most complex refineries of its kind in the country, producing an array of value-added petroleum products.
As of the latest data, CPCL has a market capitalization of ₹11,483 Crore, which is down 18.6% over the past year. For the full year ending March 2025, net profit declined 92.20% to ₹214.09 Crore compared to ₹2,745.07 Crore in the previous year ended March 2024. Sales declined 10.59% to ₹59,356.02 Crore in the year ended March 2025, against ₹66,385.73 Crore during the previous year.
The company has experienced significant challenges in recent periods. Average gross refining margin (GRM) for the period from April-December 2024 was $3.40 per barrel, which is significantly lower compared with the GRM of $8.98 per barrel in April-December 2023. Net profit declined 94.31% to ₹20.78 Crore in the quarter ended December 2024, as against ₹365.28 Crore during the previous quarter ended December 2023. Sales declined 25.61% to ₹12,925.36 Crore in the quarter ended December 2024.
CPCL was conceived as a grass-root refinery in 1969 with an installed refining capacity of 2.5 MMTPA. Today, CPCL is one of the largest refining corporations in South India, with an installed refining capacity of 10.5 MMTPA. The present capacity of the Manali refinery is 10.5 MMTPA. The Nelson Complexity of the refinery is 9.71.
CPCL Manali refinery is one of the most complex refineries in India with Fuel, Lube, Wax, and Petrochemical feedstocks production facilities. The 5.8 MGD Sea Water Desalination Plant set up to augment the water requirements of the refinery was the first of its kind in the industry.
CPCL had a second refinery, located at Nagapattinam, which was commissioned in 1993. This Cauvery Basin Refinery (CBR) was a small well-head refinery processing crudes from nearby ONGC fields, Ravva crude, and KG-D6 crude. CBR was decommissioned from April 1, 2019, due to limitations in meeting product specifications with the existing configuration.
The main products of the Company are LPG, Motor Spirit, Superior Kerosene, Aviation Turbine Fuel, High Speed Diesel, Naphtha, Fuel Oil, Lube Base Stocks, and Bitumen. These products are marketed by parent company IOCL. It also produces Speciality products like Paraffin Wax, Mineral Turpentine Oil (MTO), Hexane, Petrochemical feedstocks, Linear Alkyl Benzene Feedstock (LABFS), Petroleum Coke, and Sulphur, and they are marketed by the company itself.
CPCL has a Wax Plant of 30,000 metric tonnes (MT) per annum to produce paraffin wax for manufacturing candle wax, waterproof formulations, and match wax. This unit supports the livelihood of 30,000 beneficiaries, mainly from domestic and Micro, Small & Medium Enterprises. A Propylene Plant was commissioned in 1988 with an initial capacity of 17,000 MT per annum to supply petrochemical feedstock to neighboring downstream industries. The unit was revamped to enhance the propylene production capacity to 30,000 MT per annum in 2004.
Chennai Petroleum Corporation Ltd (CPCL) is ramping up its annual capital expenditure to ₹700–800 Crore over the next two years—nearly double its usual outlay. The increased investment will fund both regular operations and major capacity upgrades as the company pivots toward high-margin growth areas.
Out of the planned capex, CPCL will allocate ₹250–300 Crore for routine maintenance and smaller projects, while it will earmark ₹400–500 Crore for the critical upgrade of its Lube Oil Base Stock (LOBS) units 2 and 3. The company is modernizing these units to produce Group II/III premium base oils by converting naphtha and high-speed diesel.
Simultaneously, CPCL is advancing its major nine MMTPA refinery expansion project in Nagapattinam, Tamil Nadu. CPCL has already acquired over 1,200 acres of land for the project, which it is developing as a joint venture with Indian Oil Corporation (IOCL). The project's updated capital cost stands at ₹36,354 Crore, with IOCL holding a 75% stake and CPCL retaining 25%.
CPCL has also made pioneering efforts in Energy and Water Conservation by setting up a Wind Farm and Sewage Reclamation plant, where 5 MGD of sewage water from Chennai city is processed to meet the raw water requirements of the refinery. It also pioneered key initiatives in several areas such as process optimization, technology absorption, energy conservation, and environment management.
H Shankar has officially taken charge as Managing Director of Chennai Petroleum Corporation Ltd in April 2025, bringing over three decades of experience in the oil and gas sector. Chennai Petroleum Corporation Limited has appointed Ravi Kumar Rungta and Dr. C.K. Shivanna as non-executive independent directors, effective March 28, 2025, to enhance governance and oversight capabilities.
The company previously declared a ₹55 per share dividend for FY 2024. Chennai Petroleum Corporation Ltd will announce its Q4 results on April 25, 2025, and may consider a dividend for FY 2024-25.
Chennai Petroleum Corporation Limited continues to be a significant player in India's energy sector, despite facing challenging market conditions. The company's strategic focus on capacity expansion, product diversification, and operational efficiency positions it for long-term growth in the evolving petroleum refining landscape.
