This presentation all data taken from official sites and material. So anyone can use it as research material.

1. Petrochemical Hub of India:
GUJARAT
8/19/10 @All the Data is taken from official websites 1

2. 8/19/10 @All the Data is taken from official websites 2
Petrochemical
“The chemicals that are
formed directly or
indirectly from petroleum
based hydrocarbons and
natural gases”

3. 8/19/10 @All the Data is taken from official websites 3
Petrochemical Industry Structure

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Petrochemical Industry Value Chain

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World Petrochemical Industry
Flow and Consumption pattern
India
Chaina
Middle
East
Europe
North
America
Legend
Raw Material Source
Processing hub and end-use market
End use market
Flow of Raw Material to Processing as well as end markets
Flow of Processed goods

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INDIAN Petrochemical Industry
Geographic Location

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Indian Petrochemical
Industry Structure
 Reliance Industry contribute 70% of Petrochemical sector
 In India only 40 companies work in this sectors

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Indian Petrochemical Growth
Cycle
13% Growth rate
- Which is more than twice the GDP of India
approx 7%

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Fact and Figures of Indian Petrochemical
Sector

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End user products of the Petrochemical
industry of India
 Plastics and Resins
 Pharmaceuticals
 Automotive Chemicals including Antifreeze Agents
 Detergents, Solvents, Plasticizers, and Paint Varnishes
 Agricultural Chemicals such as Fertilizers, Pesticides, and Herbicides
 Synthetic Elastomers

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Key Chemical & Petrochemical Regions of
India
1)Gujarat
2)Maharashtra
3) West Bengal
4) Other States
- Assam
- Tamilnadu
- Arunachal Pradesh
Source: Gujarat Industrial Development Corporation., GoG

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Gujarat as a Petrochemical Hub of
India
Petrochemical Industry in Gujarat produces 13,048 (‘000 Tones) of
petrochemical products and also contributes around 62% to the
total production of the country.
Why?
Gujarat contributes 15% of the total national chemical exports.
The Petrochemical industry offers a wide spectrum of
opportunities for the investors both from India and abroad.
Source: Gujarat Industrial Development Corporation., GoG
43 MoUs & Announcements were signed in Vibrant Gujarat 2009
for projects to be established in the chemical & petrochemical
sector with a proposed investment INR 42473 crore

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Globalization
Increase use
of IT
Cost
Reduction
Focus on core business
Consolidation
R&DHigh Domestic
Demand potential
Low level
of R&D
Cost
advantage
Fragmented
Industry
Low export
Focus
Gujarat
Petrochemical/
Chemical
industry
Source: E & Y Analysis
Why Gujarat?
Graphical Representation

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What are the factors supporting
Petrochemical Industry of Gujarat?
 Low cost of manufacturing
 Scale and operational efficiency
 Global reach, either through export activity or in-country production
 Technological advantage; potential for licensing process technology
 Proven R&D effectiveness; intellectual property portfolio that may
offer licensing and/or other revenue generation capacity
 Government support through liberalize industrial policies, SEZ
benefits, national and international investor meet through Vibrant
Gujarat Concept
Source: Gujarat Industrial Development Corporation., GoG
Factors

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Government of Gujarat policy support to
the Chemical/ Petrochemical industries
Licensing Policy
In chemical sector, 100% FDI is permissible. Manufacture of most
chemical product inter-alia covering organic/inorganic, dyestuffs &
Pesticides.
The entrepreneurs need to submit only IEM with the Department
of Industrial Policy & Promotion Provided no location angle is
applicable.
Only following items are covered in the compulsory licensing list
because of their hazardous nature:
- Hydrocyanic acid and its derivatives
- Phosgene and its derivatives
- Isocynates and di-isocynates of Hydrocarbons

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Customs Duty
The peak rate of Customs Duty on most Chemicals is 7.5%
On basic Raw material like acid grade fluorspar sulphur, rock
phosphate, natural borates is 5%
On most building blocks and feedstock the duty is 5% (ethylene,
propylene, crude, naptha, benzene, toluene, xylene,
ethylbenzene)
Continue…

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Excise Duty
On almost all chemicals the Excise Duty is 16%.
Continue…

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Educational Infrastructure, which generate
Skill manpower for this industry
1. Some of the major academic institutions offering chemical engineering course
includes:
 Nirma University Of Science & Technology, Ahmedabad
 Government Engg. College, Valsad
 L.D. College of Engg., Ahmedabad
2. There are 39 Engineering colleges in Gujarat offering course in Chemical
Engineering.
3. 49 Polytechnics offer courses in Chemical sector in Gujarat. Some of these are in
Rajkot Bharuch and Valsad
 Govt. Polytechnic, Rajkot
 K.J. Polytechnic, Bharuch
 Govt. Polytechnic, Valsad

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Petrochemical Industries:
Gujarat
Company name Location
Reliance Jamanagar, Hazira
IPCL Baroda, Gandhar
BASF Gandhar
Lanxess ABS Ltd Baroda
GE Baroda
GSFC Baroda, Jamanagar
Gharda Chemicals Panoli
ONGC Dahej
IOC Baroda
Tata Chemicals Mithapur
Indian Rayon Veraval

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Foreign companies contribute in
Petrochemical Industry of Gujarat
Sr. no Company name
1. Cheminova
2. Transpec Silox
3. Ciba
4. LANXESS
5. BASF
6. HUBER
7. Bayer
8. The Dow Chemical

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Investment Opportunity in Petrochemical
industry: Gujarat
 43 MoUs & Announcements were signed in Vibrant Gujarat 2009 for
projects to be established in the chemical & petrochemical sector
 Proposed investment –INR 42473 crore
 Scope of Employment Generation –20827
 Projects primarily related to establishing industrial parks and
production of:
- Basic & fine chemicals
- Specialty & performance chemicals
- Organic & inorganic chemicals
- Dyes and intermediates

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Chemical/ Petrochemical
Projects of Gujarat
 Methanol Production
 Propylene Oxide and Propylene Glycol
 Cumene Production
 Phenol / Acetone
 Nitrobenzene and Aniline
 Diphenylmethane diisocyanate (MDI) and Toluene diisocynate (TDI)
 Polyvinyl Chloride (PVC)
 ABS Resin
 Polycarbonate Resin
 Polyethylene Terephthalate (PET) Chips
 Styrene Butadiene Rubber (SBR)
 Bi-Axially Oriented Polypropylene (BOPP) Films
 BOPET Films
 Polyethylene (PE) Multi Layer Film Project
 Polyolefins Compounding and Masterbatches
 Polypropylene (PP) Ropes
 Fiber and Filament

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 Plastic Crates
 Bisphenol-A
 Mono-Chloro Acetic Acid (MCA)
 Bromine
 Titanium Tetrachloride / Titanium Dioxide
 Chlorosilanes
 Synthetic Zeolite -Zeolite A
 Contract Research and Manufacturing Services (CRAMS)
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Conclusion
1. India's most Industrialized State (State Government support and Vibrant
Gujarat Concept)
2. Leader in various industrial sectors, Chemicals, Petrochemicals, Drugs &
Pharmaceuticals, Dairy, Cement &Ceramics, Textiles, Engineering and
Gems & Jewellery
3. Longest Coastline of 1600 km with 18 active ports across the State
4. Highest Number of Airports: 13
5. Road network – exceeding 74000 kms
6. Only Integrated Statewide Gas Grid: 2200 km
7. Largest Grass root refinery

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References…
1. http://www.skyscrapercity.com/showthread.php?t=959182
2. http://info.shine.com/Article/Petrochemicals/Indian-Petrochemical-Industry-Overview/2179/cid912.aspx
3. http://www.infraline.com/apconference/index.asp
4. http://www.chemtech-online.com/events/chemtech/2010/01/indian-petrochemical-industry.php
5. http://business.mapsofindia.com/petrochemical/
6. http://www.vibrantgujarat.com/
7. http:/www.indextb.com
8. http:/Industries Commissionerate / iNDEXTb, Government of Gujarat, 2007
9. Ministry Of Chemicals & Fertilizers Government Of India
10. Department of Technical Education, Department of Employment & Training
11. Gujarat Industrial Development Corporation., GoG
12. Ernst & Young Analysis
13. Annual Survey of Industries (ASI)

26. 8/19/10 @All the Data is taken from official websites 26
Thank You for Participation…