India's polymer output is expected to mount from the current 5 mln tpa to 7 mln tpa between 2008 to 2011 thanks to the combined investment of Rs.1,38,743 crore from 10 petrochem companies in three years. The 40% massive capacity expansion is also set to give the industry a better footing in the global market for plastic products - where China is a dominant player, and fuel the domestic consumption of plastics and employment creation. As per the current figures, 20% of the feedstock for the plastic processing units is fulfilled by imports and thus, this whopping rise in polymer output will help the downstream manufacturers to rely less on the imports. However, the cyclical nature of the polymer industry implies that the rise in supply will lead to increased consumption.
The polymer capacity addition will be a result of major expansion plans of companies like Reliance Industries, Haldia Petrochemicals, Essar Gujarat Petrochemicals, Chemplast Sanmar, Bharat Petroleum and smaller additions by others like Mitsui Prime Advanced Composites.
Reliance Industries plans to fund a 900,000 tpa polypropylene unit in Jamnagar by 2009-10 worth Rs.25,000 crore. Besides, it is likely to add ethylene and other petrochemical output capacity of 2000,000 tons for an investment of about Rs.13,500 crore and smaller additions in Kerala and Rajasthan. Haldia Petrochemicals will invest Rs.770 crore for its 400,000 tons expansion project in West Bengal and Chemplast Sanmar is investing Rs.540 crore to build a 150,000 tons PVC unit at Cuddalore, Tamil Nadu, which is expected to be ready next fiscal. Essar Gujarat Petrochemicals will invest Rs.21,470 crore for a whole range of petrochemicals expected to go underway by 2011-12. BCPL's Rs 5,460 crore plant in Assam is also expected to be commissioned around the same time.
17-Jul-08 
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