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Petrochemicals Industry in India

  • ID: 63191
  • Report
  • March 2004
  • Region: India
  • 11 pages
  • PSi Inc
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Petrochemical production in India began with the commissioning of Union
Carbide’s naptha cracker in 1961. Among the first producers of polymers in India were Imperial Chemical Industries (ICI) and Chemicals & Plastics Ltd., which were in the business of manufacturing Low Density Polyethylene (LDPE), and Polyvinyl Chloride (PVC) respectively. Next was the Shell, Hoechst and Mafatlal joint venture christened National Organic Chemical Industries Ltd. (NOCIL).

However, much of the federal government’s efforts came to naught, as negotiations with major international players broke down over management control. With capital deficiency in the domestic private sector, the federal government took the first step to establish India on the petrochemicals map. Indian Petrochemical Corporation Ltd. (IPCL) was incorporated in 1969 and the first olefins plant was commissioned in 1978. In the 1980s, the industry grew rapidly, with the Indian Petrochemical Corporation Limited (IPCL) setting up many plants in the states of Maharashtra and Gujarat. The largest player in the field Reliance Industries Limited (RIL) led the industry’s expansion in 1990s with its global size plants at Jamnagar and Hazira in Gujarat.
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