04/16/2012 | Autor / Editor: MARCEL DROETTBOOM / Dominik Stephan
The prospects for growth of the Indian market for synthetics are positive. Until 2015, production of polymers is expected to double. Following a moderate development as a result of the worldwide financial crisis, important consumer sectors are growing again, which should result in increasing demand. The demand for rubber has also started to grow again, to a large extend driven by the requirements of the tire industry. Michelin, for example, is investing US$ 735 million in a new tire production plant near Chennai with a final capacity of two million pieces per year. The first tires are expected to leave the assembly line in November 2012.
India is one of the ten largest consumers of plastics and rubber and the demand is expected to grow significantly in the coming years. While the growth potential of the important consumer branches is high, the per capita consumption is still quite low at six kilogram per person, compared to the worldwide average of 27 kilogram per person, leaving room for a significant growth.
The inland demand is expected to increase by 13 per cent per year until 2015, and the production of polymers is expected to almost double in the same period to approximately 13 million tonnes per year. As the production capacity will not be sufficient to meet the expected demand, it needs to be expanded by 7.3 million tonnes, according to the Indian Central Institute of Plastics Engineering and Technology (CIPET).
While the Indian pharmaceutical industry has already conquered rank three of the world top producers, the chemical industry is still on rank twelve. One of the major companies in the area, Reliance Industries estimates that the total production during the years 2008/2009 reached some US$ 40 billion. To push the development of the chemical industry, the Indian government established a national programme, which, among other objectives, aims to remove one of the most severe obstacles for the Indian chemical industry, the insufficient infrastructure and interconnection between the existing production sites.
At the heart of the ambitious plan to bring the third largest producer of chemicals on eye level with China is the creation of six petrochemical production sites with a total area of 250 square kilometres. According to the GTAI, the Indian Government plans to invest some US$ 280 billion to establish the six integrated clusters with refineries and crackers at the centre – to deliver the base chemicals. Based on these activities, the Indian Chemical Council hopes that the total sales volume of the Indian chemical and petrochemical industry will increase from currently US$ 65 billion to more than US$ 2000 billion in 2020.
This article is protected by copyright. You want to use it for your own purpose? Infos can be found under www.mycontentfactory.de (ID: 32944730) | Fotos: Picture: PROCESS India