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 a report.
The report by GlobalData, a leading data, and analytics company, 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 and 2, Indian Oil Corporation Panipat Polypropylene Plant, HPCL-Mittal Energy Bhatinda Polypropylene Plant 1 and Reliance Industries Hazira Polypropylene Plant.
Dayanand Kharade, oi and gas analyst at GlobalData, explains: “Increasing polypropylene demand mainly from packaging, due to urbanisation and growing income levels are contributing to large capacity additions in India.”
IThe major companies in the country are Reliance Industries, Indian Oil Corp, Oil and Natural Gas Corp, Hindustan Petroleum Corp and Haldia Petrochemicals. 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 $1228.6/tonne in 2017 to $1440.0/tonne in 2022, the report said. - TradeArabia News Service