South Asian Petrochem

Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating[5/5]Total Votes [ 2 ]  
Rate this page:

This site provides detailed information on South Asian Petrochem. It also focuses on the company and the latest market scenario.

South Asian Petrochem (SAPL) was established in 1996. SAPL is in the process of setting up a PET resins plant at Haldia in West Bengal,India. The proposed plant of South Asian Petrochem will have an installed capacity of 140,000 tons per annum (TPA). This project of South Asian Petrochem is being set up in technical collaboration with Zimmer AG of Germany.

Moreover, this project of South Asian Petrochem has also subscribed to the equity capital and FCDs to the extent of DM 6 m. The said company is a 100% export oriented unit (EOU), conforming to the latest government ofIndia law on Export Oriented Unit. The South Asian Petrochem can sell up to a maximum of 50% of its petrochemical products by adhering to the domestic tariff regime as applicable for the ordinary or domestic producers of petrochemical products.

As per industry reports, the bottle grade PET resin segment has grown at a very fast rate. As per Petrochemical Industry or PCI reports, world demand for the bottle grade resin has grown at 17.5% in the last ten years. As per IDBI's estimates, demand for bottle grade PET resins was 4.6 mtpa in FY98 and have risen from there substantially over the years. This is primarily due to the rise in the domestic market demand and crunch in Europe. The main consumers for the bottle grade PET resins are theIndian made foreign liquor segment. TheIndian made foreign liquor segment accounts for about a whooping 26% of bottle grade resin consumption. This sector is followed by the segment of edible oil and soft drink. There has been a steep rise on the export front also. The huge demand-supply gap in Europe has propelled the astronomical growth of this sector inIndia along with its South East Asian member countries. The crunch in demand was met by imports from South East Asian countries includingIndia, which is one of the largest exporters. Asian producers of bottle grade PET resins offers comparatively lower raw material prices. Moreover, the advantage of the cheap labor is another leveraging factor for theIndian and South East Asian producers. The per capita consumption of PET resins is 0.02 kg inIndia, much below the international standards but the numbers are rising steadily.

South Asian Petrochem or SAPL is being promoted by the Dhunseri Group. The group also manufactures synthetic blended yarn. S. L. Dhanuka and C. K Dhanuka promoted the Dhunseri Group.

Last Updated on 13 December 2011