6 minute read
Petrochemicals: A Step Towards a Greener Tomorrow
Ajay Shah
President - Polymer Chain, Reliance Industries Ltd., Navi Mumbai “The three market segments that will witness steep growth in coming times are the Indian retail sector, backed by robust growth in e-commerce; the other being pipes, tubes and hoses, driven by the government infrastructure projects; and polymer usage in agriculture, and is expected to see a 4% growth,” opines Ajay Shah, in dialogue with POLYMERS Communiqué.
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India on the Cusp of a Consumption Explosion
Will Require 30 Million Tonnes of Polymer by 2030
Q. How does the Indian polymer industry compare with its global counterpart?
India is one of the largest polymer producers in the world. It is the fifth largest producer of polypropylene (PP) and ranks among the top 10 high-end polymer producers globally. The two largest drip lateral manufacturers have their production bases in India.
India ranks third in polymer consumption globally, after China and the US. However, there is a big difference in per capita consumption.
India has strong potential for growth as it has a low per capita consumption of about 14 kg polymer per annum - one-tenth of that of the US and less than a third of that of China. With rapid urbanisation across the country and the Indian government’s stressing on ‘Make in India’ to turn the country into a manufacturing hub, segments like retail, automobile, construction and infrastructure will strongly boost polymer demand and bridge the demand-supply mismatch.
India’s current polymer consumption is around 20 million tonnes, having more than doubled from around 8 million tonnes in 2010. With the nation on the cusp of a consumption explosion, we will require 30 million tonnes of polymer output by 2030. To meet this requirement, Indian producers need to either ramp up their brownfield capacity or set up new greenfield units.
As per industry data, 1 million tonne of capacity addition requires USD 5 billion of fresh investment. India must invest around USD 75 billion in the next 10 years to build the required capacity equivalent to meet the burgeoning consumption.
Along with India, the entire Indian sub-continent is expected to witness a strong growth in polymers. India is expected to lead the growth in the Indian sub-continent, offering a plethora of investment
The COVID-19 pandemic and the subsequent disruptions have put the polymer industry at the centre of VUCA world challenges. Commodity prices have been surging in tandem with international crude prices. Amid these uncertainties, it’s a challenging task to navigate business to success. We are adopting all risk containment measures to tide over these challenges.
opportunities. The sub-continent has a larger population than China but has 20% less polymer demand. Over the next five years, the region is expected to see one of the fastest growth rates in polymer demand in the world and will outstrip China and other emerging economies.
Q. Commodity to speciality... how do you see developments of players for the niche market segments?
The Government of India is implementing policies to drive economic reforms, creating a conducive environment for healthy growth of the economy. The ‘Make in India’ initiative is expected to provide a fillip to the manufacturing sector. With the polymer industry’s thrust on development of research-based innovative products which provide greater strength, durability, aesthetics, light-weighting and barrier properties, the usage of polymer applications will increase substantially in the construction, electronics, automobile and aerospace industries.
The expanding automotive and electrical industries, combined with infrastructure development, are expected to further drive the growth of speciality polymers market in India.
The Indian retail sector is booming,
backed by robust growth in e-commerce. This phenomenon has generated a robust demand for packaging materials. Currently, India imports materials worth USD 265 million, which is 5% of the total imports of finished goods. With focus on manufacturing products with additional functional features, simultaneously keeping the cost competitive, the Indian industry is poised to grab the opportunity of import substitution.
The other segment that is expected to see robust growth is pipes, tubes and hoses. These products have seen imports worth USD 193 million - 3% of the total imports. Growth in this segment will be driven by the government infrastructure projects like roads, railways, airports and ports. R&D-based polymer products in these categories offer more durability, ease of transportation, as well as ease of installation, and hence they are the most sought-after among alternatives.
Polymer usage in agriculture in India is very low compared to developed economies, despite India being the second largest producer of fruits and vegetables. This segment is expected to see a 4% growth. There is a huge potential for plasticulture in India as its share in the global market is only 1%. Polymer applications helping water conservation, wastage reduction and yield improvement are expected to drive the growth in this segment.
Q. Engineering applications for polymers have attracted a lot of investment and research. How do you visualise the evolution of this sector?
Polymers are transforming various industries in terms of efficiency improvement, while also reducing operating costs and carbon footprint.
Reinforced plastics have become an effective alternative to metal components. Reinforced plastics are lightweight, stronger, adaptable and durable. A robust increase in demand is expected for this wonder material across applications. Reinforced plastics applications are most sought-after in automobile, aerospace, medical and construction sectors.
Polyester is currently showing the highest growth rate, driven by its applications and substitution of polyamide in certain electrical and electronic segments.
Polypropylene and reinforced polypropylene demands are growing rapidly due to research-based product development in high-volume applications for the automobile industry. This product category is expected to register 10 - 15% per annum growth rate; demand traction for highperforming polymers like polyphenylene sulfide (PPS) and liquid crystal polymer (LCP) to see rapid growth.
Q. How do you see the dynamics of the evolution of material science in the coming 5 - 10 years? The change that could have the biggest impact...
The R&D teams at leading polymer companies, including Reliance Industries Ltd., are working to make innovative products that can improve the quality of life, provide performance enhancement, cut costs, enhance durability, improve aesthetics, reduce carbon footprint and improve performance.
For so many years, advanced composites have been growing at a very good rate, especially in the aviation and aerospace sectors. Of late, modern composites are being used in almost all industries, including transport, packaging, renewable energy and construction.
We expect that carbon fibre reinforced
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