India's polymer manufacturers to up capacity

Indias polymer manufacturers are set to expand their capacity by a whopping 40% in the next three years, leading to large-scale job creation and increased local consumption of plastics. About 10 petrochemical companies are investing Rs138,743 crore (US$32.4 billion) in projects that would be commissioned between 2008 and 2011. India’s petrochemical production will be raised from the current five million tons per year (tpy) to about seven million tpy. While this may help downstream plastics producers to depend less on imports for some time, the nature of this industry is such that higher supply results in higher consumption – a virtuous cycle, according to industry experts. While Bharat Petroleum Corporation Ltd. (BPCL) is adding a 50,000-ton propylene capacity in Kerala for Rs64 crore (US$14.9 million), Mitsui Prime Advanced Composites is adding a 15,000-ton petrochemical capacity for Rs90 crore (US$21 million) at Neemrana in Rajasthan. Companies like Essar Gujarat Petrochemicals in Jamnagar, Oil and Natural Gas Corporation (ONGC) in Dahej, Indian Oil Corporation at Paradip in Orissa, BPCL in Assam and ONGC in Mangalore are also building additional capacities. (July 17, 2008)