Growth of India Petrochemical Industry

Growth of India Petrochemical Industry

Growth of India petrochemical industry is playing a major part in the growth of the economy and the development of the manufacturing sector. The petrochemicals industry provides more value addition to the Indian economy than most of the other companies.

Petrochemicals are obtained from different chemical compounds which are by-products of crude oil refining. Most of them fall may be categorized into hydrocarbons. With the fractional distillation of the crude oil, chemicals like naphtha, kerosene, petroleum gases, ethane, methane, propane, and butane are the primary stocks used in the petrochemical industry for the production of various other chemical compounds.

Presently, the extent of penetration of the petrochemical products in day-to-day use is vast. It actually covers most of the domain of existence such as apparels, accessories, household items, furniture, electronics, construction, housing, automobiles, medical appliances, packaging, horticulture, and agriculture.

TheIndia petrochemical industry originated in the 1970s and entered the arena of the industries ofIndia. This sector was subjected to rapid growth in the period between the 1980s and 1990s. Even today, expectations from this sector are sky-high. TheIndian petrochemical industry for it part is doing very well and has been contributing significantly to the country's GDP fro several years now. TheIndia petrochemical industry primarily consists of synthetic rubber i.e. elastomer, yarn of synthetic fiber, synthetic detergent intermediates, performance plastics, plastic processing industry, and polymers.

The Bongaigaon refinery was set up as an experimental one with the capacity of a refinery and a petrochemical unit. The success of this integrated petroleum refinery-cum-petrochemicals unit led to a spree of activities in this sector. Many such units were established to boost production capabilities. With the growth of India petrochemical industry, it holds the share of around 20% of the total global producer of petrochemical related products.

In the present scenario, 5 naphtha and 3 gas cracker coordination compounds are in operation with ethane production capability of around 2.6 million tons every year, jointly. Along with this, another 4 aromatic coordination compounds are in operation with a xylene production capability of around 2.1 million tons.

Research and Markets: Indian Paints & Coatings Market: Trends & Opportunities (2012-2017)

Research and Markets: Indian Paints & Coatings Market: Trends & Opportunities (2012-2017)

Over the past years, the Indian paints and coatings industry has substantially grown and caught the attention of many international players. The country is expected to witness a higher economic growth in the future leading to a larger market size for paint and coating industry. Other emerging countries in Asia-Pacific region are also witnessing this growth as these places are backed by higher disposable income, exponentially growing population, improving infrastructure and huge investments in infrastructure.

Indian paints and coatings market is mainly driven by demand of two types of paints, decorative paints that constitute 75% of the market and industrial paint which constitute the remaining 25%. The major players in Indian paints & coatings market are Asian Paint, Kansai Nerolac, Berger Paints, Akzo Nobel and Shalimar Paints.

The Indian paints & coatings market is highly organized with about 70% of market domination by organized player. The market tends to have a monopolistic competition, lead by Asian paints. With improvements in standard of living and growth in awareness about paints and coating, the Indian consumers have become more conscious about how the house interior and exterior looks. They have shifted the focus from regular paints and distempers to enamel and premium paints. This change has driven demand for premium paints in the market. The Indian market recorded a tremendous growth of 45% in last five years.

The rural sector is still an untapped market of India. Companies show focus on coming up with paints and coatings which are consumer specific to the villagers and small towns of India.

The report titled Indian Paint & Coating Market: Trends & Opportunities (2012-2017) analyzes the growth of the paints and coatings market in India. It captures the major trends, the factors driving the growth of the market and also the Porter's Five Forces model to present the value chain and the level of competition in the market. Also, the major players operating in the industry are profiled and future direction of the industry assessed in the report.