Favorable macroeconomic conditions to drive Indian polymer industry

27-Apr-16

The main factor contributing to the growth of Indian polymer industry is favorable macroeconomic conditions like population growth and financial conditions like increasing FDI investments. Moreover, rural market is growth frontier for the polymers manufacturers in India providing a huge market to be tapped. Polymers industry in India is poised to experience double digit growth during the forecast period owing to the humongous growth in the application sectors such as packaging, building & construction, consumer products and more. Packaging industry is the largest consumer of polymers in India. This industry is estimated to grow at a rate of 15% p.a. over the next few years to reach a size of US$48 bln by FY16. The growth of the plastics industry has a multiplier effect on numerous important sectors such as packaging, building & construction, automotive, consumer products and others. In terms of number of products and its application in the market, polyethylene had dominated the Indian market followed by polyvinyl chloride and polypropylene. The report also focuses on key regions within India in terms of changing trends in using polymers in various applications. Western region holds major share with a significant growth rate. Polymers market in India is expanding vigorously as many companies are taking initiatives for the developments that include business expansion, product launches, partnerships and many more. The largest business expansion was undertaken by Reliance industries Limited. It is the largest petrochemical player in India has all its cracking units in West and this facilitates the growth of downstream plastic processing industry in Western region. Petrochemical and refining are the two core business segments of Reliance industries.