Scope ofIndia Petrochemical Industry

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The scope ofIndia Petrochemical Industry is potentially huge. With the trend in the global market shiftingIndia can become one of the leaders in this industry on a global basis.

India Petrochemicals industry is an important member of theIndian economy because it fulfills the need of major industries like textiles, telecoms, power, cables, plastics etc.

The competitors in the market are attracted to theIndia petrochemical industry for its benefits. The per capita consumption of synthetic fibers, synthetic rubber, plastics, polymers inIndia is lower than the per capita consumption worldwide. But interestingly, the growth of the petrochemical industry inIndia in recent times was around 15% whereas the growth in the petrochemical industry globally was only 4%. In the future, there is a huge scope for theIndia petrochemical industry in the global market for petrochemicals and petrochemical-based products. This would make way for the entry of new companies in theIndian market.

This industry is divided into 3 basic petrochemicals such as olefins (ethane, propane, and aromatic compounds such as benzene, toluene, intermediate petrochemicals, end products (polymers), synthetic fibers, and synthetic rubber. As the general trend in the global arena of the petrochemical market has shifted to the Middle East and Asia from the West,India stands a good chance in providing a lucrative market to the world.

In the present scenario, the scope ofIndia petrochemical industry is very good as the government regulations are aligned with the industry and is playing an important part. The regulations have opened the market which is full of scope for the rapid growth of the industry and in turn, the growth of the economy. The supply and demand situations and the pricing views in the industry are also among the factors for growth. With fierce competition in this sector, there is every chance that superb quality products will be produced in order to stay ahead of competitors.

The encouragement for investment has been another growth factor for theIndia petrochemical industry. The capacity of different products is in the production, segmentation, and consumption trend of each of the products and so the economies of scale play a very important role in the profit making mechanism of this industry, thereby determining the scope of each of the competitors in the industry.

The majorIndian companies in this sector are:

  • Reliance Industries Limited
  • Gas Authority ofIndia Limited
  • Indian Petrochemicals Corporation Limited
  • Grasim Industries Limited
  • Indo Rama Synthetics Limited

Last Updated on 13 December 2011