Raj Mohan.S Ranitha. J

Evolution of Petrochemical Industries Petrochemical Products- Chemical Structure

Petrochemical Products & its Uses
Indian Petrochemical Industry Market characteristics

Current scenario and prospects
Key Issues & Challenges

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to which hydrogen atoms are attached. Page 3 . Made up of hydrocarbon molecules. which are comprised of one or more carbon atoms.INTRODUCTION • • Petrochemicals are chemicals made from petroleum (crude oil) and natural gas.

“Petrochemicals are organic and inorganic compounds and mixtures that include but are not limited to organic chemicals. surface active agents. There are over 4. synthetic fibres. detergents. organic pigments. 1/27/2013 Page 4 . organic dyes. carbon black. cyclic intermediates. elastomers. and ammonia”. plastics and resins.000 products classified as "petrochemicals".

In 1920. it would stimulate ripening. Standard Oil Company opened a plant in New Jersey. Cracking was introduced into crude oil refineries. and this process released the ethylene.  The “birth” of petrochemicals goes back more than 150 years.   In 1913. 1/27/2013 Page 5 .  Union Carbide opened a plant in 1923 which used produced chemicals and polymers. Egyptians found that when the fig plant was gashed.

adversely affected the entire petrochemical industry. During World War I.  In the 1980s Middle Eastern countries began to develop their own petrochemical plants. benzene and toluene produced by Britain lead to the drastic development in the industry.  During World War II. the industry in the United States expanded rapidly to meet the increased demand. during which oil supplies declined and prices escalated.  1970s oil crisis. 1/27/2013 Page 6 .

 Aromatics .Ethylene. • Butadiene is used in making synthetic rubber. • xylenes are used to produce plastics and synthetic fibre's. Toluene and Xylenes. Propylene and Butadiene. 1/27/2013 Page 7 . • Benzene and toluene used in making polyurethanes. • Ethylene and propylene are important sources of industrial chemicals and plastics products.Benzene. Olefins . • Benzene is a raw material for dyes and synthetic detergents.

1/27/2013 Page 8 . Synthesis gas – A mixture of carbon monoxide and hydrogen used to make ammonia and methanol. • Methanol is used as a solvent and chemical intermediate. • Ammonia is used to make the fertilizer urea.

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Perfume Glue Golf balls Wool Crayons Balloons Textile Umbrellas Fertilizer Lipstick Deodorants Food preservative Dyes House paint Candles Bandages Aspirin Antiseptics Plastic Insecticides Ink Photographs Detergent Shampoo nylon rope Toothpaste 1/27/2013 Page 10 .

Mold various show pieces Cleaning Pesticides. Cloth Medical Field Preservatives Containers. Insecticides Ink. Curtains Wax Detergent and soap Fertilizers Dyes Plasters Food Adhesives Plastic Ethylene Candles. Bags Camera Film 1/27/2013 Page 11 . Bottles.Petrochemical Products Synthetics Uses Carpets.

(RIL) Indian Petrochemicals Corporation Ltd. accounts for 70% of the petrochemical capacity in the country. (GAIL) Haldia Petrochemicals Ltd.. (IPCL) Gas Authority of India Ltd.. Only four major companies dominate the industry to a large extent: • • • •  Reliance Industries Ltd. along with IPCL. (HPL) RIL... 1/27/2013 Page 12 .  Oligopolistic in nature.

1/27/2013 Page 13 . • Per capita consumption of polymers is 4 kg in India. The petrochemical industry is characterized by    Sluggish demand. whereas the per capita consumption is around 20 kg for the whole world.6 kg for China and 3. Consumption of Petrochemical Products India has one of the lowest per capita consumptions of petrochemical products in the world. • Per capita consumption of polyester in India lies at 1. Volatile feedstock prices.4 kg only comparing to 6.3 kg for the whole world.

Supply outstrips demand Refineries are expanding their capacity Supply Leading to increase in production Improves further in future Demand generates from downstream industries Demand Depends on state and growth of the economy Demands bound to be on higher end 1/27/2013 Page 14 .

Capital Intensive and high volume industry Barriers to entry The raw material cost is the major expense Integrated plants require huge investments Competition within domestic market is limited Competition Threat of imports from Middle East and the Asia Pacific The refineries are getting integrated 1/27/2013 Page 15 .

MARKET CHARACTERISTICS  One of the fastest growing sectors of Indian economy growing at 13%. Page 16 1/27/2013 . Petrochemical industry is a cyclical industry and to avoid this. handful of players. big players have started setting up fully integrated global size plants.  RIL & IPCL have fully integrated plants and dominate the Indian market.   Highly organized industry.  Petrochemical industry is highly capital and technology intensive.

1/27/2013 Page 17 .RAW MATERIAL  Naphtha & Natural gas are the main raw material and are by-products of crude oil. Naphtha gives a better yield of product mix.  DISTRIBUTION  Sold through distributor / stockist / C&F channel.  Large volumes may be dealt by the company directly.

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Mumbai (RIL). 1/27/2013 Page 19 .. Totally dependent on international pricing. Haldia Petrochemicals.. Indian Petrochemicals Ltd. Mumbai. Gas Authority of India Ltd. Delhi (GAIL). NOCIL. MAJOR PLAYERS      RIL Industries Ltd. though it is not justifiable economically. Producers forced to match international prices even. Kolkata. Mumbai (IPCL)..PRICES    Highly volatile.

India has three naphtha and three gas based cracker complexes with a combined ethylene annual capacity of over 2.5 MMTA (Million Metric Tonnes Per Annum). 1/27/2013 Page 20 .  Besides.9 MMTA.CURRENT SCENARIO AND PROSPECTS  Currently. there are four aromatic complexes also with a combined Xylenes capacity of 2.  Polymers account for more than 60 percent of total petrochemical production.

PCPIR (Petroleum. this should provide a boost to the sector. Chemicals and Petrochemical Investment Regions) will be set up in a 2.   100% FDI is permissible in chemical industry.000 sq km area with an estimated investment of $280 bn.  Government is aiming at a low-priced high-return involvement in the petrochemical segment. via publicprivate-partnership (PPP). 1/27/2013 Page 21 .

 New crackers and derivatives projects announced are making slow progress and their coming on stream might be further delayed. 1/27/2013 Page 22 .KEY ISSUES AND CHALLENGES  Challenges for sustained growth.  India's ethylene capacity is far smaller than China.  Lack of low cost feedstock and dependence on western countries for technology.


in/ http://business.php 1/27/2013 Page 24 .com/research-it/sectorinfo/petrochem/  industry     2010/01/indian-petrochemical-industry.chemtech-online.REFERENCE  http://www.equitymaster.mapsofindia.

Thank You Page 25 .