PETROCHEMICAL INDUSTRY BY:SONIYA CHOUDHARY ROLL NO-1113343
ABOUT PETROCHEMICAL INDUSTRY The petrochemical industry has been one of the of the fastest growing industries in the Indian economy. It provides the foundation for manufacturing industries such as pharmaceuticals, construction, agriculture, packaging industry, textiles, automotive, etc. The petrochemical industry in India is oligopolistic with four main players dominating the market, namely Reliance Industries Ltd. (RIL) along with Indian Petrochemical Ltd. (IPCL), Gas Authority of India Ltd (GAIL), and Haldia Petrochemicals Ltd. (HPL).
DEMAND AND GROWTH Petrochemicals dominates the global chemicals market with a share of almost 40 percent. The growth of the chemical industry, currently 2-3 percent above the average world GDP. The major driver for the growth of petrochemical industry in India is its (Indias)ongoing economic development. The Government has set in place policies to promote investment in the petrochemical sector. Decision to allow 100 percent foreign direct investment projects in this sector, and establishment of a series of special economic zones (SEZs) and a number of petroleum, chemicals, and petrochemical investment regions (PCPIRs). Petrochemicals are the downstream of the oil and gas industry .
Cont’d Petrochemicals are a part of our daily lives - the carpeting on which we walk, plastic soda bottles from which we drink, clothing we wear, fertilizers that grow our crops, tires we rely on for transportation, paints we use to brighten our surroundings, pharmaceuticals. Asian markets are undergoing a sea change in the form of high demand markets for petrochemicals. By 2018, 60 percent of the petrochemical growth is likely to take place in Asia, with China . Asia becoming hubs for processing of end products as well as a high demand end-use market.
Various Petrochemical industries C Cairn India LtdCastrol India LimitedChemcel Biotech LtdChemplast Sanmar Ltd D Deepak Fertilisers & Petrochemicals Corpn. LtdDuke Offshore Ltd E Essar Oil Limited G GAIL (India) Limited H Hindustan Petroleum Corporation LimitedHingir Rampur Coal Company Ltd. I Indian Oil Corporation LimitedIndian Petrochemicals Corpn. LtdIndraprastha Gas Limited O Oil and Natural Gas Corporation LimitedOil India Limited
KEY ISSUES AND CHALLENGES The Indian petrochemical industry faces a number of challenges for sustained growth, putting India at a competitive disadvantage in the competition with China. Indias ethylene capacity is far smaller than Chinas and is unlikely to rise above its Asian rivals levels in the next 5- 7 years. This will make it impossible for India to develop applications further downstream. Other major issues faced by the Indian petrochemical industry are lack of low cost feedstock and dependence on western countries for technology.
Conclusion The future of the Indian petrochemicals industry is bright with domestic demand driving the market for products. With Government support slowly falling into place, the future could see more investments from multinationals as well as domestic companies