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GDP based on PPP; Source : World Economic Outlook 2006 India: 4 th largest economy in world % of World GDP
GDP based on PPP; Source : World Economic Outlook 2006 India: 4 th largest economy in world Real GDP Growth
Opportunities and Growth of Indian Petrochemical Industry
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
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
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.
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
Domestic Supply Demand Balance - Polyethylene Demand as per recent indication by DOC&P, MOC&F
Domestic Supply Demand Balance - Polypropylene Demand as per recent indication by DOC&P, MOC&F
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
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
Domestic Supply Demand Balance - Fibres Based on Task Force report demand projection Figs. TMT
Domestic Supply Demand Balance – Para-xylene Source : Industry Fig’s in TMT Significant potential exists for addition of new PX capacity
Domestic Supply Demand Balance – Fibre Intermediates Based on Task Force report demand projection PTA MEG Figs. TMT
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
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
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.
Challenges in Indian Petrochemicals Industry
Key Challenges- Polymers
Focus/thrust areas on development of newer applications/ value added products:
Plasticulture: leading to modern farming resulting in improved productivity