India’s butadiene market is set to experience a significant growth trajectory through 2028, contributing about 18% of the global butadiene capacity additions from six new build and expansion projects, says GlobalData, a leading data and analytics company.

GlobalData’s latest report, “Butadiene Industry Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants to 2028” reveals that India is likely to witness butadiene capacity additions of 1.18 million tonnes per annum (mtpa) between 2024 and 2028. The capacity addition is expected to be from one announced and five planned projects.

Nivedita Roy, Oil and Gas Analyst at GlobalData, comments: “Butadiene is primarily used in the manufacture of synthetic rubber, which in turn finds applications in various sectors, including tyres and automotive components. The flourishing automotive industry in India, coupled with the increasing demand for high-performance tyres, is expected to boost the butadiene market in the country.”

In India, a major capacity addition is from an announced project, Reliance Industries Jamnagar Butadiene Plant, with a capacity of 0.70 mtpa. Reliance Industries Ltd has a 100% stake in the plant and is also the operator of the project. Located in the state of Gujarat, it is expected to commence production in 2026.

With a capacity of 0.20 mtpa, HPCL Rajasthan Refinery Pachpadra Butadiene Plant follows next and is expected to come online next year. HPCL Rajasthan Refinery Ltd is the operator of the plant located in Rajasthan. Nayara Energy Vadinar Butadiene Plant is another significant project in Gujrat with a capacity of 0.18 mtpa. It is expected to start operations in 2026.