India Petrochemicals Report Q4 2010
Business Monitor International, September 2010, Pages: 71
The India Petrochemicals Report provides industry professionals and strategists, corporate analysts, petrochemical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on India's petrochemicals industry.
Strong growth in domestic petrochemicals demand in H110 is likely to abate, owing to a cooling in economic activity, but the Indian market is strong enough to justify the planned rapid increase in capacities, according to BMI’s latest report. In 2010 and going into 2011, there are signs are that we will see a cooling in activity due to a peaking of industrial activity, less accommodative global conditions and the winding down of the government’s economic stimulus. But industry expansion is proceeding, albeit with delays, with projects that were postponed during the global economic downturn now being revived. During Q210, domestic demand for polyester products increased 10% , owing to increased non-apparel applications like home furnishing and technical textiles. Within the polyester segment, demand for polyethylene terephthalate (PET) increased 38% thanks to increased demand for beverages and bottled water. Polymer products demand remained stable during the quarter. Within the polymer segment, demand for polypropylene (PP) increased by 6% due to strong growth in the automobile sector, cement packaging and other industrial applications.
Demand for PE and PP is forecast to grow in double digits in 2010 and 2011, with some grades, such as biaxially-oriented polypropylene (BOPP) film for packaging, non-woven PP and pipe grade polyethylene (PE) expected to grow by more than 20%. In 2010, strong demand for low density PE (LDPE) and linear low density PE (LLDPE) film will suck in imports, while the country will remain self-sufficient in high density PE (HDPE) over the short term due to plentiful capacity and relatively poor demand. However, the PP sector in general is in danger of overcapacity. India was a significant PP exporter in 2009, but moderation in growth in global demand at a time of rising capacity will dampen prospects on external markets. Yet, domestic demand has yet to catch up with growing output volumes. As a result, the pressure to differentiate will increase, as competition in the Indian market heats up. R&D and the introduction of higher grades of polymer products are therefore essential to add value.
The main engine of the economy – domestic demand – will be fuelled by rising private consumption and fixed investment levels, as well as the need to rebuild inventories. This has renewed confidence in the petrochemicals industry. BMI estimates Indian consumption of plastics will grow from 8mn tonnes in 2009 to 16mn tonnes by 2016 and 25mn tonnes by 2020, with a lower rate of growth than the 15-16% seen in recent years. Nevertheless, this should prompt growth in the industry of 9-10% per annum. Estimates for the investment needed to cater for the increase in demand for plastics in 2010-2016 has been put at US$10bn. Even when bearing in mind the delays and cancellations, India will host a rapidly expanding petrochemical industry. The Indian government forecasts domestic polymer demand reaching 11mn tonnes in 2015, up from 5.8mn tonnes in 2008. This implies that India will remain a net polymer exporter. However, BMI is doubtful India will come close to increasing the value of its production from the current US$15-18bn to US$30-35bn by 2012-2014, a level that the Tata Strategic Management Group (TSM) says is necessary to cover the rate of domestic demand growth. By 2014, BMI estimates that per capita polymer consumption will reach 14kg. While relatively modest by international levels, it will be far higher than 4.7kg in 2007, which represented 20% of the global average. Moreover, it will make India the world’s third largest plastics consumer after the US and China.
India is ninth in our Asia Petrochemicals Business Environment Ratings, with 61.8 points, putting it 16.3 points ahead of Indonesia and 1.6 points behind Australia. India’s score has recovered in recent months as a result of the continued expansion of the sector as well as a reduction in negative risks associated with the economic downturn and international financial crisis.
Executive Summary
SWOT Analysis
India Petrochemicals Industry SWOT
India Political SWOT
India Economic SWOT
India Business Environment SWOT
Global Overview
Petrochemicals Market Overview
Table: World Ethylene Production By Country, 2009 And 2014 (‘000 tonnes capacity)
Financial Results
Table: Financial Results Of Major Petrochemicals Companies, 2009
Global Oil Products Price Outlook
Table: Oil Product Price Assumptions, Q409-Q410 (US$/bbl)
Table: Oil Product Price Data And Forecasts, 2007-2014 (US$/bbl)
Emerging Asia Petrochemicals Overview
Table: Asian Ethylene Projects
India Market Overview
Government Policy
Table: India’s Petrochemicals Sector – Cracker Capacity
Table: India’s Petrochemicals Sector – Polypropylene Capacity
Table: India’s Petrochemicals Sector – Polystyrene Capacity
Table: India’s Petrochemicals Sector – Polyethylene Capacity
Table: India’s Petrochemicals Sector – Polyvinyl Chloride Capacity
Indian Fertiliser Industry
Industry Trends And Developments
Government Policy And Regulation
Projects And Expansion Plans
Planned Petrochemicals Expansion
Table: India’s Petrochemicals Sector – Polypropylene Capacity Projects
Table: India’s Petrochemicals Sector – Polyethylene Projects
Table: India’s Petrochemicals Sector – Ethylene Capacity Projects
Foreign Ventures
Egypt-India Ventures
Industry News – Related Industries
Mergers And Acquisitions
Financial Results
Business Environment
Petrochemicals Business Environment Ratings
Table: Asia Pacific Petrochemicals Business Environment Ratings
Legal Code/Corruption
Red Tape
Foreign Direct Investment
Tax Regime
Forecast Scenario
Petrochemicals Outlook
Table: India’s Petrochemicals Sector, 2007-2014 (‘000 tpa, unless otherwise stated)
Macroeconomic Outlook
Table: India – Economic Activity, 2007-2014
Company Profiles
Gas Authority Of India (GAIL)
Indian Oil Corporation (IOC)
Reliance Industries (RIL)
Country Snapshot: India Demographic Data
Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2030
Section 2: Education And Healthcare
Table: Education, 2002-2005
Table: Vital Statistics, 2005-2030
Section 3: Labour Market And Spending Power
Table: Employment Indicators, 1996-2001
Table: Consumer Expenditure, 2000-2012 (US$)
Table: Average Annual Manufacturing Wages, 2000-2012
Glossary Of Terms
Table: Glossary Of Petrochemicals Terms
BMI Methodology
How We Generate Our Industry Forecasts
Chemicals and Petrochemicals Industry
Cross Checks
Business Environment Ratings
Table: Petrochemicals Business Environment Indicators And Rationale
Weighting
Table: Weighting Of Indicators
- Gas Authority Of India (GAIL)
- Indian Oil Corporation (IOC)
- Reliance Industries (RIL)
Product Samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
All rights reserved. © Copyright 2013 Research and Markets WWW5
Terms and Conditions Privacy Policy Publishers Employment Opportunities Site Map Link to us Webmaster Affiliate Network
