Packaging industry driving polypropylene growth in India
Published by Callum O'Reilly,
The packaging industry, which accounted for a share of 28.8% of the polypropylene demand in India in 2017, is set to drive the country’s polypropylene plant capacity over the next four years, according to GlobalData.
The company’s report: ‘Polypropylene Industry Outlook in India to 2022 - Market Size, Company Share, Price Trends, Capacity Forecasts of All Active and Planned Plants’ reveals that some of the upcoming new-build and expansion projects, HPCL Rajasthan Refinery Pachpadra Polypropylene Plant, Nayara Energy Vadinar Polypropylene Plant, Indian Oil Corp. Paradip Polypropylene Plant, HPCL-Mittal Energy Bhatinda Polypropylene Plant 2, with a capacity of 1.150 million tpy, 1.050 million tpy, 0.700 million tpy, and 0.500 million tpy, respectively are expected to commence their production by 2022.
The largest polypropylene plants in India in 2017 were Reliance Industries Jamnagar Polypropylene Plant 1, Reliance Industries Jamnagar Polypropylene Plant 2, Indian Oil Corp. Panipat Polypropylene Plant, HPCL-Mittal Energy Bhatinda Polypropylene Plant 1 and Reliance Industries Hazira Polypropylene Plant.
Dayanand Kharade, Oil & Gas Analyst at GlobalData, explains: “Increasing polypropylene demand mainly from packaging, due to urbanisation and growing income levels are contributing to large capacity additions in India.”
The major companies in the country are Reliance Industries Ltd, Indian Oil Corp Ltd, Oil and Natural Gas Corp Ltd, Hindustan Petroleum Corp Ltd and Haldia Petrochemicals Ltd. In 2017, together these companies accounted for 86.6% of the polypropylene capacity in India.
The main sectors that consume polypropylene in India are packaging, electrical, equipment and facilities, household appliances, automotive, and construction. In 2017, these sectors accounted for almost 83% of the country’s polypropylene demand.
The average price of polypropylene is expected to grow at a CAGR of 3.2% from US$1228.6/t in 2017 to US$1440.0/t in 2022.
In 2008, India was a net importer, whereas during the period from 2009 to 2015, India was a net exporter of polypropylene. According to GlobalData forecasts, imports as a percentage of demand are expected to decrease from 12.2% in 2017 to 11% in 2022.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/27052019/packaging-industry-driving-polypropylene-growth-in-india/
You might also like
AFPM responds to request from State of California
The American Fuel & Petrochemical Manufacturers (AFPM) has issued a statement following California’s request to ban sales of new gasoline and diesel vehicles by 2035.