Mumbai: Japanese trading houses Mitsubishi Corporation and Mitsui & Co may take stakes in the proposed Rs4,852 crore aromatic units of Mangalore Refinery and Petrochemicals Ltd (MRPL).

"We are talking to both Mitsui and Mitsubishi for participation in the project. They have said they will come back to us after talking to their management," MRPL managing director R. Rajamani said.

The two Japanese firms have also expressed an interest in buying the proposed plant''s entire paraxylene output, Rajamani said. A final decision on including further partners will be taken within six months, he added.

The aromatic complex - ONGC Mangalore Petrochemicals Ltd - will be a separate venture, and will meet demand for paraxylene, he said.

MRPL''s parent company, Oil and Natural Gas Corporation, will hold 46 per cent stake in the unit while MRPL will own a three per cent stake.

Rajamani, however, refuted earlier reports that MRPL may offer 51 per cent stake to the strategic buyer in the aromatic plant. The company has set a timeline of 4-6 months for induction of a strategic partner, he added.

He also denied MRPL is planning to sell equity stake to a strategic buyer. "Selling! There''s no question of selling. MRPL and ONGC together will have an equity of 49 per cent and others 51 per cent. We are talking to some buyers for long-term agreements on our products and a possible equity participation. We are not selling our equity," he told CNBC in an interview.

There are many traders who deal with these products, they are talking to us. He said while MRPL has been talking to Mitsubishi and Mitsui, a few others are also interested in a long-term supply agreement and a possible equity participation.

Paraxylene is the base material used in the production of polyester and plastics.

MRPL stock, meanwhile, flared up to Rs82.55 on strong buying support. The stock is now ruling around Rs80.25, up 23 per cent over yesterday''s closing price.