Mr K Govindarajan
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Mr K Govindarajan Presentation Transcript

  • 1. Petrochemicals : Growth & Challenges IndiaChem 2006 Conference 9 th November 2006
  • 2. Presentation Overview
    • Economic Profile : India Snapshot
    • Opportunities and Growth of Indian Petrochemical Industry
    • Challenges in Indian Petrochemical Industry
    • IndianOil integration into petrochemicals
    • Conclusion
  • 3. Economic Profile : India Snapshot
  • 4. GDP based on PPP; Source : World Economic Outlook 2006 India: 4 th largest economy in world % of World GDP
  • 5. GDP based on PPP; Source : World Economic Outlook 2006 India: 4 th largest economy in world Real GDP Growth
  • 6. Opportunities and Growth of Indian Petrochemical Industry
  • 7. Petrochemicals - Per capita consumption Per capita consumption in India is much lower than world average – Ample potential for growth Task Force Report on Petrochemicals, April 2003
  • 8. Consumption of major Petrochemicals – last two decades CARG % Growth in consumption during last two decades has been significant and consistent Task Force Report on Petrochemicals, April 2003 CARG achieved : more than double the growth rate of GDP 15.3 16.4 Fibre Int. 13.0 14.0 Fibre 14.4 14.0 Polymer 1995-96 / 2001-02 1985-86 / 1995-96
  • 9. Growth Potential for India
    • Polymer consumption in developed countries are reaching a stagnation : growth areas in Asia.
    • Amongst fastest growing world economies.
    • Opening up of petrochemical sector for investment.
    • Large and growing domestic consumer market.
    • Investments in Infrastructure
    • Large working age population
    • Growing middle class households.
  • 10. in KTs Polymer Demand Growth Potential: Snapshot CAGR, % CAGR: 13% CAGR: 15-16% Source: Information from Dept. of Petrochemicals, MOC&F New capacity additions required to meet the growing future demand of Polymers
  • 11. Domestic Supply Demand Balance - Polyethylene Demand as per recent indication by DOC&P, MOC&F
  • 12. Domestic Supply Demand Balance - Polypropylene Demand as per recent indication by DOC&P, MOC&F
  • 13. Emerging opportunities – Fibres
    • Global restructuring of textile and clothing trade post MFA.
    • International competitiveness in Quality, Service
    • India and China are best placed in entire clothing value chain- cost competitiveness
  • 14. Domestic Demand projection Synthetic fibre CARG % Demand, KT Source: Task Force report on petrochemicals, April’03 While the Task Force has projected growth of around 6% in future, considering the opening up of the market and post MFA, it is expected that the growth in the fibre sector would be in double digits 5.6 6.4 Total 2.3 - 10.5 1.8 - 9.4 Fibre Int. 6.2 6.7 PSF 5.6 6.6 PFY 2006-07/ 2011-12 2000-01/ 2006-07
  • 15. Domestic Supply Demand Balance - Fibres Based on Task Force report demand projection Figs. TMT
  • 16. Domestic Supply Demand Balance – Para-xylene Source : Industry Fig’s in TMT Significant potential exists for addition of new PX capacity
  • 17. Domestic Supply Demand Balance – Fibre Intermediates Based on Task Force report demand projection PTA MEG Figs. TMT
  • 18.
    • Indian petrochemical industry has:
      • Large & growing domestic market
      • Low per capita consumption
      • Growing GDP growth
      • Expertise in specialized products
      • Large availability of trained manpower
      • Ability to adapt & assimilate new technology
      • Competent managerial & technical manpower
      • Emergence of petrochemical hubs
    Petrochemicals Imperatives Indian petrochemical industry has grown & poised to grow further in near future Indian Petrochemicals on the move
  • 19. Petroleum, Chemicals and Petrochemicals Investment region (PCPIRs)
    • Government is working on PCPIRs to promote investment both domestic and international markets
    • These regions will have state-of-the art infrastructure and support to boost manufacturing, augment exports and generate employments.
    • Benefits of co-citing, networking and efficiency through common facilities
  • 20. Drive for Growth
    • Indian companies are willing for collaboration with international majors to add new capacities in India to explore the growing demand of products.
    • Government of India is also advocating and promoting new investments in the country.
  • 21. Challenges in Indian Petrochemicals Industry
  • 22. Key Challenges- Polymers
    • Focus/thrust areas on development of newer applications/ value added products:
      • Plasticulture: leading to modern farming resulting in improved productivity
      • Packaging: processed foods & consumer non-durables
      • Automotives: better performance plastics for automobiles & consumer durables
  • 23. Key Challenges- Polymers…
    • Focus/thrust areas on development of newer applications/ value added products:
      • Geo-textiles/Geo-synthesis: infrastructure development – gas piping, canal lining, inter-river linkages, roads (polymer modified Bitumen) etc.
      • Innovative products for telecom & IT sectors
      • Engineering polymers: electronics, telecom, automobiles, substitution of metals etc.
      • Substituting construction materials
  • 24. Key Challenges- Synthetic fibres
    • Future growth areas:
      • New varieties of polyester fibres & yarn
      • PP filament yarn
      • Acrylic fibres
      • Technical textiles including performance fibres
  • 25. Key Challenges- environmental aspects
    • To achieve environmentally sustainable growth through:
      • Innovative methods of plastic waste management
      • Recycling
      • Development of bio- & photo-degradable polymers
    • Approach through:
      • Setting up of dedicated plastic park to promote a cluster concept for applications & recycling, which would yield benefit to:
        • Areas of technology development
        • Best practices
        • Market development
        • Recycling of wastes
  • 26. IndianOil Integration into Petrochemicals
  • 27.  
  • 28. Conclusion
  • 29. Conclusion
    • World has become a single global market – Manufacturers to be highly competitive to survive
    • Opportunities are available for growth in Petrochemicals – to cater to India and global markets
    • India needs significant investment for addition of new capacities on petrochemicals
  • 30. Thank You