PETROCHEMICAL INDUSTRY IN INDIA: VISION 2025 & BEYOND INDIACHEM - - PowerPoint PPT Presentation
PETROCHEMICAL INDUSTRY IN INDIA: VISION 2025 & BEYOND INDIACHEM 2018 Janardhanan Ramanujalu, VP & Regional Head, S. Asia & ANZ, SABIC October 5, 2018 PRESENTATION OUTLINE About SABIC Indian Chemical Industry Feedstock
INDIACHEM 2018
Janardhanan Ramanujalu, VP & Regional Head, S. Asia & ANZ, SABIC October 5, 2018
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SABIC AT-A-GLANCE
*Forbes 2018 **Billion
Company established
Employees around the world
Countries of
Largest global chemical company*
Largest public company in the world*
Core businesses
World-class plants worldwide
Global patent filings
New products each year
Total assets
Net income
Annual revenue
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SABIC IN INDIA- 25 YEARS JOURNEY
SABIC WORLDWIDE BROUGHT TO INDIA SABIC WORLDWIDE BROUGHT TO INDIA SABIC WORLDWIDE BROUGHT TO INDIA SABIC WORLDWIDE BROUGHT TO INDIA SABIC INDIA PVTLTD,GURGAON SABIC INDIA PVTLTD,GURGAON SABIC INDIA PVTLTD,GURGAON SABIC INDIA PVTLTD,GURGAON
Chemicals Business: Chemicals Business: Chemicals Business: Chemicals Business: Polymers Business: Polymers Business: Polymers Business: Polymers Business: Agri Agri Agri Agri-
Nutrients Nutrients Nutrients Business: Business: Business: Business: Olefins, Aromatics & Chlor Alkali, Glycols and Oxygenates, OXO alcohols, Linear Alpha Olefins (LAO) PP, LDPE, HDPE, LLDPE, PVC, PS, PET and range of Engineering Thermoplastics AMMONIA, UREA & DAP
JUBAIL GELEEN
SABIC FOR INDIA SABIC FOR INDIA SABIC FOR INDIA SABIC FOR INDIA MANUFACTURING/VADODARA MANUFACTURING/VADODARA MANUFACTURING/VADODARA MANUFACTURING/VADODARA
Total Area : 29 Acre Compounding Plant Compounding Plant Compounding Plant Compounding Plant Plant Start up : Q4 1993 Product Capability: Advanced engineering compounded thermoplastics Sheet Plant Sheet Plant Sheet Plant Sheet Plant Plant Start up : Q4 2009 Product Capability: Roofing, Skylight, Cladding, Sound Barrier
VADODARA MANUFACTURING SITE
SABIC FOR THE WORLD SABIC FOR THE WORLD SABIC FOR THE WORLD SABIC FOR THE WORLD SABIC TECHNOLOGY CENTER SABIC TECHNOLOGY CENTER SABIC TECHNOLOGY CENTER SABIC TECHNOLOGY CENTER BENGALURU BENGALURU BENGALURU BENGALURU
Land Area: 46 Acre Investment: > USD 100 Million Inaugurated in October 2013 More than 360 research scientists &engineers 4 STAR GRIHA rating by ADaRSH LEED India– Gold certified/100% Export Oriented Unit for captive SABIC Research BENGALURU RESEARCH CENTER
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CHEMICALS : TOUCHING OUR LIVES
BIOTECHNOLOGY BIOTECHNOLOGY BIOTECHNOLOGY BIOTECHNOLOGY AGRO CHEMICALS AGRO CHEMICALS AGRO CHEMICALS AGRO CHEMICALS PHARMACEUTICAL CHEMICALS PHARMACEUTICAL CHEMICALS PHARMACEUTICAL CHEMICALS PHARMACEUTICAL CHEMICALS FINE CHEMICALS FINE CHEMICALS FINE CHEMICALS FINE CHEMICALS PERFORMANCE CHEMICALS PERFORMANCE CHEMICALS PERFORMANCE CHEMICALS PERFORMANCE CHEMICALS SPECIALTY CHEMICALS SPECIALTY CHEMICALS SPECIALTY CHEMICALS SPECIALTY CHEMICALS BULK INTERMEDIATES BULK INTERMEDIATES BULK INTERMEDIATES BULK INTERMEDIATES BASIC CHEMICALS BASIC CHEMICALS BASIC CHEMICALS BASIC CHEMICALS TEXTILES TEXTILES TEXTILES TEXTILES CONSUMER CONSUMER CONSUMER CONSUMER APPLIANCES/ELECTRONICS APPLIANCES/ELECTRONICS APPLIANCES/ELECTRONICS APPLIANCES/ELECTRONICS AUTOMOBILE INDUSTRY AUTOMOBILE INDUSTRY AUTOMOBILE INDUSTRY AUTOMOBILE INDUSTRY ELECTRONICS ELECTRONICS ELECTRONICS ELECTRONICS AGROCHEMICALS AGROCHEMICALS AGROCHEMICALS AGROCHEMICALS PHARMACEUTICALS PHARMACEUTICALS PHARMACEUTICALS PHARMACEUTICALS MASS TRANSPORTATION MASS TRANSPORTATION MASS TRANSPORTATION MASS TRANSPORTATION CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION FRAGRANCES FRAGRANCES FRAGRANCES FRAGRANCES FLAVOURS FLAVOURS FLAVOURS FLAVOURS AGRI AGRI AGRI AGRI-
NUTRIENTS NUTRIENTS NUTRIENTS
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GLOBAL CHEMICALS FORECAST
3.8 3.8 3.8 3.8 4.6 4.6 4.6 4.6 5.6 5.6 5.6 5.6 6.7 6.7 6.7 6.7
FY 15 FY20 FY25 FY30
GLOBAL GLOBAL GLOBAL GLOBAL CHEMICAL INDUSTRY (USD CHEMICAL INDUSTRY (USD CHEMICAL INDUSTRY (USD CHEMICAL INDUSTRY (USD TRILLION TRILLION TRILLION TRILLION) ) ) )
Global Chemicals Market is expected to grow at CAGR ~4% from USD 4Tn Now to USD 6.7 Tn in 2030 Indian Chemical Industry expected to grow to US$300 billion(2025)at CAGR ~ 9%
[VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE]
FY10 FY15 FY 20 FY 25
INDIAN CHEMICAL INDUSTRY (USD BILLION) INDIAN CHEMICAL INDUSTRY (USD BILLION) INDIAN CHEMICAL INDUSTRY (USD BILLION) INDIAN CHEMICAL INDUSTRY (USD BILLION)
Sources: IHS Markit, CEFIC, GOI website
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C2: ETHYLENE SUPPLY & DEMAND (MMT),INDIA
Ethylene deficit to grow though current capacity addition may bring some respite for the next 2-3 years but urbanization will drive the demand in the long term.
Indicator: India’s urbanization will add another 315 million people to our cities; which is current population of US thus boosting demand by 2040
5.5 8.3 13.7 6.4 8.6
2017 2023 2030
Domestic Demand Capacity to produce
Source: IHS: Ethylene Chemical Economics Handbook, 31 May 2017
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Classification: General Business Use
C2 : GROWTH RATE OF ETHYLENE BY MAJOR END USE , INDIA
5.5 MMTA 15 MMTA 2016-2030 Ethylene
Ethylene demand growing with 11% CAGR and will crosses to 13 million metric tons by 2030. PE accounted for 66% of total ethylene demand, followed by EO (15%) and EDC (6.2%).
Source: IHS: Ethylene Chemical Economics Handbook, 31 May 2017
Ethylene and its intermediates industry will be value- creating segment for Indian market; where SABIC can play an important role
1.67 3.34 4.91 1.01 2.39 3.85 0.20 0.71 1.44 0.81 1.63 2.39 0.34 1.08 2.08
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2017 2025 2030 million metric ton Alpha-olefins Ethylene dichloride EO LDPE LLDPE HDPE
13.9% 7.4% 9.5%
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C2 : ETHYLENE DEMAND (2018),INDIA
Ethane 39% Propan e 9% Butane 1% Naphth a 49% Others 2%
Ethylene Prod. by Feedstock Capacity: 5.0 MMT
NE Asia, 26% SE Asia, 7% N.America, 22% S.America, 3% Europe & CIS, 17% Africa, 1% M.East, 20% INS, 4%
Global Ethylene Capacity Total ~165 MMT
Source: IHS: Ethylene Chemical Economics Handbook, 31 May 2017
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Classification: General Business Use
C3 : PROPYLENE SUPPLY & DEMAND (MMT), INDIA
Propylene deficit to grow as the current capacity is likely to gets absorbed in the long term. PP accounted for more than 95% of the total propylene demand.
Source: IHS: Propylene Chemical Economics Handbook, 31 May 2017
5.19 8.13 10.00 5.00 6.87 2017 2023 2030 Domestic Demand Capacity to Produce
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Classification: General Business Use
C3: PROPYLENE DEMAND (2017),INDIA
Polyprolyle Polyprolyle Polyprolyle Polyprolyle ne, 96% ne, 96% ne, 96% ne, 96% PO, 1.00% Others, 0.20% Cumene, 0.30% Isopropan
Oligomers, 0.30% 2 EH, 1.00% Butanols, 0.35%
Propylene demand by end use Demand: 5.2 MMT Propylene by Process
Source: IHS: Propylene Chemical Economics Handbook, 31 May 2017
Global Propylene Capacity Total 124 MMT
>95% percent propylene was consumed for polypropylene production.
Steam Steam Steam Steam Cracker Cracker Cracker Cracker 34% 34% 34% 34% Refinery Refinery Refinery Refinery Grade Grade Grade Grade 48% 48% 48% 48% On On On On purpose purpose purpose purpose 18% 18% 18% 18%
19% 3% 18% 1% 9% 39% 7% N.America
Europe & CIS Africa M.East INS NE Asia SE Asia
4%
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Souce: CPMA
(MMT)
2017 2017 2017 2017 2030 2030 2030 2030 2040 2040 2040 2040
Capacity Capacity Capacity Capacity Demand Demand Demand Demand Surplus/Deficit Surplus/Deficit Surplus/Deficit Surplus/Deficit Demand Demand Demand Demand Surplus/Deficit Surplus/Deficit Surplus/Deficit Surplus/Deficit
Capacity Capacity Capacity Capacity Demand Demand Demand Demand Surplus/Deficit Surplus/Deficit Surplus/Deficit Surplus/Deficit
Capacity Capacity Capacity Capacity Ethylene (Derived Demand) 6.26 5.25 1.10 12.96 (6.71) 24.88 (18.62) Propylene (Derived Demand) 5.24 4.46 0.77 9.11 (3.88) 14.30 (9.06) Styrene
(0.69) 1.23 (1.23) 1.73 (1.73) Butadiene 0.56 0.28 0.29 0.75 (0.18) 1.42 (0.85) Benzene 1.99 0.45 1.53 1.68 0.30 2.57 (0.58) Methanol 0.27 1.97 (1.69) 3.64 (3.37) 5.54 (5.27)
DEMAND-SUPPLY GAP PROJECTIONS FOR PRODUCTS
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FEEDSTOCK : STRATEGIC OPTIONS FOR INDIA
NAPHTHA NAPHTHA NAPHTHA NAPHTHA ETHANE ETHANE ETHANE ETHANE COAL COAL COAL COAL INTERMEDIATES IMPORTS INTERMEDIATES IMPORTS INTERMEDIATES IMPORTS INTERMEDIATES IMPORTS
>60% of feedstock for chemicals in India
fuel value
HPFCC, naphtha availability will be challenge
speciality chemicals industry is a possibility
attractive opportunity as there is low cost feedstock.
investments in gasification terminals, shipping, pipelines etc.
challenge as compared to naphtha.
diversity.
attractive option to monetize low cost coal.
harnessing the potential to monetize low quality coal.
technologies to produce high purity ethylene & propylene.
footprints, low quality coal dampens the profits.
viable option for specialty chemicals due to its high value addition in the end stage
viable option and is recommended for India. The country has naturally adopted this route as it is a practical and viable
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PCPIR: AN ENABLING CONCEPT
GUJARAT GUJARAT GUJARAT GUJARAT ODISHA ODISHA ODISHA ODISHA ANDHRA ANDHRA ANDHRA ANDHRA PRADESH PRADESH PRADESH PRADESH TAMILNADU TAMILNADU TAMILNADU TAMILNADU
Vishakhapatnam Vishakhapatnam Vishakhapatnam Vishakhapatnam 640 sq km Paradeep Paradeep Paradeep Paradeep 284 sq km Dahej Dahej Dahej Dahej 453 sq km Naghapattinam Naghapattinam Naghapattinam Naghapattinam Cuddalore & Cuddalore & Cuddalore & Cuddalore &
efficiencies through common infrastructure and support services.
Note: PCPIR- Petroleum, Chemicals & Petrochemicals Investment Regions
257 sq km
Dahej Dahej Dahej Dahej PCPIR PCPIR PCPIR PCPIR Anchor Tenant: ONGC Petro additions Limited Investment (made/committed): Rs. 85,928 crore Employment Generation: 1.32 lakh persons AP AP AP AP PCPIR PCPIR PCPIR PCPIR Draft Master Plan, EIA completed Investment (made/committed) Rs. 43,744 crore Employment Generation potential: 1.11 lakh person Tamilnadu Tamilnadu Tamilnadu Tamilnadu PCPIR PCPIR PCPIR PCPIR Investment (made/committed) Rs. 2100 crore Employment Generation: 13950 persons Paradeep Paradeep Paradeep Paradeep PCPIR PCPIR PCPIR PCPIR Anchor Tenant: Indian Oil Corporation Limited Investment (made/committed): Rs. 45000 crore Employment Generation: 38000 persons
1 sq. km = 247.1 acres
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Enablers Enablers Enablers Enablers
Master Master Master Plan Plan Plan Plan is advocated for the success of concept.
planning for Independent operators.
Single Single Single Environment Clearance Environment Clearance Environment Clearance Environment Clearance for whole PCPIR to eliminate long processing time.
ambit of government.
desalinization units; Customs etc.
POLICY SUPPORT FOR PCPIR REALIZATION
Despite Strategic location; 100% FDI in chemicals sector PCPIR still need to reach full potential. Despite Strategic location; 100% FDI in chemicals sector PCPIR still need to reach full potential. Despite Strategic location; 100% FDI in chemicals sector PCPIR still need to reach full potential. Despite Strategic location; 100% FDI in chemicals sector PCPIR still need to reach full potential. Opportunities Opportunities Opportunities Opportunities
adequate adequate adequate adequate land land land land with excellent connectivity
mechanism for management & implementation.
Deregulated Deregulated Deregulated industry industry industry industry and promotion of 100% FDI.
manpower.
PPP mode and consortium with Indian partners.
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Successful Successful Successful Successful Partnerships Partnerships Partnerships Partnerships in India in India in India in India Feedstock Feedstock Feedstock Feedstock Infrastructure Infrastructure Infrastructure Infrastructure Utilities Utilities Utilities Utilities Policies Policies Policies Policies Partnership Partnership Partnership Partnership Market Market Market Market
Secured feedstock at Secured feedstock at Secured feedstock at Secured feedstock at competitive prices competitive prices competitive prices competitive prices Modern Modern Modern Modern infrastructure & infrastructure & infrastructure & infrastructure & efficient logistic efficient logistic efficient logistic efficient logistic network required network required network required network required across India across India across India across India Reliable utility Reliable utility Reliable utility Reliable utility supply & good supply & good supply & good supply & good infrastructure infrastructure infrastructure infrastructure available in PCPIRs available in PCPIRs available in PCPIRs available in PCPIRs Clear & simplified policies Clear & simplified policies Clear & simplified policies Clear & simplified policies and approval systems for and approval systems for and approval systems for and approval systems for major petrochemical major petrochemical major petrochemical major petrochemical investments investments investments investments Good market Good market Good market Good market access for locally access for locally access for locally access for locally produced & produced & produced & produced & imported chemical imported chemical imported chemical imported chemical products products products products ‘Win ‘Win ‘Win ‘Win-
win’ & win’ & win’ & reliable reliable reliable reliable partnerships with partnerships with partnerships with partnerships with leading Indian leading Indian leading Indian leading Indian Partners Partners Partners Partners
SUCCESSFUL PARTNERSHIPS: STRATEGIC DRIVERS & ENABLERS