PP capacity in India expected to reach 5,155 kilotonnes by 2017, with overall domestic PP production forecast to grow at CAGR of about 6.1%, report finds; rate of growth of demand expected to reach 10.3%/annum over next five years

Elyse Blye

DALLAS , March 17, 2014 (press release) – Research and Markets (http://www.researchandmarkets.com/research/vpb4hj/india) has announced the addition of the "India Polypropylene Report - Demand, Supply, Import/Export and Production Capacity - Current trends and Forecasts" report to their offering.

Polypropylene demand in India grew from 1535 KTA in 2006 to 3072 KTA in 2012, at a CAGR of 12.3%. Production capacity more than doubled during this period to reach 4190 KTPA in 2012 from 1945 KTPA in 2006. Domestic production of PP kept pace with demand, increasing from 1844 KT in 2006 to 3692 KT in 2012 (CAGR of 12.3%). Production exceeds demand in the Indian PP market and India exported over 800 KT of PP in 2011 and 2012. India imports about 250 KT of PP every year in spite of production exceeding demand as imported PP is cheaper than domestic PP in some cases. In 2012-13, RIL continued to dominate the Indian market with a share of 64%.

Four companies- RIL, HPL, HPCL (HMEL) and IOCL - are the major producers of Polypropylene in India. ONGC (OPaL), MRPL and BCPL (Brahmaputra Cracker and Polymer Ltd) are expected to join this elite club when their petrochemical (PP) plants are completed. Capacity additions by major players will increase production substantially over the next 5 years. Capacity is expected to reach 5155 KTPA by 2017. Overall domestic PP production is forecast to grow at a CAGR of about 6.1%.

We expect robust demand growth over the next five years and rate of growth of demand will be 10.3% per annum. As production fails to keep pace with demand, we expect exports to peak at around 900 KT in 2013 and 2014 before declining steeply during the period 2015 17. By 2018, India could become a net importer of PP in the absence of any new large capacity additions.

Key Topics Covered

Introduction
Polypropylene supply in India
Indian Polypropylene Market and Demand
Indian Polypropylene Production Capacity
Polypropylene Prices in India
Polypropylene Trade in India

Companies Mentioned

- GAIL

- IOCL

- Haldia petrochemicals

- RIL

- HPCL

- BPCL

For more information visit http://www.researchandmarkets.com/research/vpb4hj/india

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