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The global chemical and petrochemical demand is currently estimated to be around 590 MMT and is expected to reach 700 MMT by 2020. The demand growth of Indian chemical and petrochemical industry has consistently outperformed the GDP growth rates of India – growing at around 1.5 times the GDP growth rate. Major chemical and petrochemical demand in India is currently estimated to be around 30 MMT and growing at a CAGR of 9%. Despite this high growth, average domestic per capita consumption of Polymers is only about 10 Kg/capita and that of Polyester is 5 kg/capita. The world average per capita consumption of Polymers is currently stands at 35 Kg/capita.

The current level of import of chemical and petrochemicals in India is estimated to be around 10 MMT and is expected to reach a gargantuan figure of 45 MMT by 2030.

The Indian apparel and textiles industry, currently estimated at around US$ 125 billion which is expected to reach US$ 230 billion by 2030. Demand of Polyester, the most prominent fiber among all man-made fibers , Polyester fiber market demand in India is expected to grow at 6-7% on a base of about 7 MMT per annum. Polyester is fast replacing conventional cotton fiber/viscose due to its cost competitiveness, ease of availability etc.

Eastern India – Huge potential for investors in Petrochem and Textile sectors

Eastern region covering 12 states is endowed with vast natural resources in terms of minerals, coal, hydroelectricity, vast coast line with ports which are the key factors for Industrial development in Eastern states. Petrochemical producers such as Haldia Petrochemicals, MCPI, BCPL and IOCL Paradeep refinery serve as raw material suppliers for Petrochemical downstream industries. The region is blessed with rich minerals including coal, has hydropower generating units and hence is electricity surplus. Availability of employable and affordable work force from reputed institutes like IITs, IIMs, XIMB and CIPET will catalyze growth of the industries in the Eastern region.

Odisha PCPIR (Petroleum, Chemicals, Petrochemicals Investment Region) at Paradeep houses 15 MMT world class refinery of IndianOil, Fertilizer plants of Paradip Phosphates and IFFCO. It is envisaged that further development of 275 PCPIR would attract an investment of about $44 billion thereby aiding significant manufacturing industry growth in and around Paradip.

IndianOil is constructing a world class Polypropylene Plant likely to be commissioned in second half of 2018. Further projects such as Glycols, PTA and pet coke gasification etc would provide raw material for textiles, fertilizer units and other downstream industries. To augment the energy requirements of Industries in Eastern India, a 5 MMTPA LNG terminal is jointly developed by IOCL, GAIL and Adani at Dhamra.

A special purpose vehicle by the name of The Paradip Plastic Park Limited (PPPL) has been formed by IDCO, Odisha in 120 acres of land opposite to IndianOil refinery.

There exists a huge potential in Paradip Plastic Park for the development of Polypropylene based downstream industries such as PP Raffia, BOPP, Furniture based applications, PP Cast Film, PP Thermoforming, PP Non-Woven etc.

It is envisaged that apparels and textiles industry would be the new sunrise industry of the East due to the availability of raw material from IndianOil, MCPI etc. Eastern India is becoming a strategic location in terms of feedstock availability & market for finished goods due to logistics efficiency along with prospects of export avenues. Also, after GST, Industries are expected to look favorably at newer manufacturing destinations, on market merit.

It is estimated that entire Polyester & Textile value chain based on one condensation Polymerisation unit would attract investments worth INR 1200 crores in an integrated textile park. Further growth in textile downstream industries may include texturizing, weaving, spinning, dying etc. and have combined potential to engage 30,000 work force both directly and indirectly in the textile park.

Investors meet in Bhubaneswar is intended to be an ideal platform for existing industrialists as well as budding entrepreneurs to discuss and deliberate on issues pertaining to development of Textiles and Petrochemical downstream industries with all stakeholders i.e. State Govt., the infrastructure provider, financial institutions, raw material supplier etc. for evolving a road map for reaping full benefits from PCPIR, Plastic Park and Textile park in East India.

© 2018