Packaging industry, which accounted for a share of 28.8% of the polypropylene demand in India in 2017, is set to drive the country’s polypropylene plant capacity over the next four years, according to GlobalData, a leading data, and analytics company.
The company’s report: ‘Polypropylene Industry Outlook in India to 2022 – Market Size, Company Share, Price Trends, Capacity Forecasts of All Active and Planned Plants’ reveals that some of the upcoming new-build and expansion projects, ‘HPCL Rajasthan Refinery Pachpadra Polypropylene Plant’, ‘Nayara Energy Vadinar Polypropylene Plant’, ‘Indian Oil Corporation Paradip Polypropylene Plant’, ‘HPCL-Mittal Energy Bhatinda Polypropylene Plant 2’, with a capacity of 1.150 mtpa, 1.050 mtpa, 0.700 mtpa, and 0.500 mtpa, respectively are expected to commence their production by 2022.
The largest polypropylene plants in India in 2017 were ‘Reliance Industries Jamnagar Polypropylene Plant 1’, ‘Reliance Industries Jamnagar Polypropylene Plant 2’, ‘Indian Oil Corporation Panipat Polypropylene Plant’, ‘HPCL-Mittal Energy Bhatinda Polypropylene Plant 1’ and ‘Reliance Industries Hazira Polypropylene Plant’.
Dayanand Kharade, Oil & Gas Analyst at GlobalData, explains: “Increasing polypropylene demand mainly from packaging, due to urbanization and growing income levels are contributing to large capacity additions in India.”
The major companies in the country are ‘Reliance Industries Ltd’, ‘Indian Oil Corp Ltd’, ‘Oil and Natural Gas Corp Ltd’, ‘Hindustan Petroleum Corp Ltd’ and ‘Haldia Petrochemicals Ltd’. In 2017, together these companies accounted for 86.6% of the polypropylene capacity in India.
The main sectors that consume polypropylene in India are Packaging, Electrical, Equipment and Facilities, Household Appliances, Automotive, and Construction. In 2017, these sectors accounted for almost 83.0% of the polypropylene demand in India.
The average price of polypropylene is expected to grow at a CAGR of 3.2% from US$1228.6/tonne in 2017 to US$1440.0/tonne in 2022.
In 2008, India was a net importer, whereas during the period from 2009 to 2015, India was a net exporter of polypropylene. According to GlobalData forecasts, imports as a percentage of demand is expected to decrease from 12.2% in 2017 to 11.0% in 2022.