October 24, 2019

Competitive Analysis of Petrochemical Plants - India

Stratas Advisors

The Petrochemical Competitiveness Index helps petrochemical companies identify weakness and strength in areas and plan actionable strategy for future

The total ethylene capacity in India is 5.5 MMt in 2019, and is projected to be 8.72 MMt by 2025. There are three steam crackers projects announced, from HMEL, HPCL-GAIL JV and RRPCL. However, only one of them is under construction. A steam crackers from HMEL in Bhatinda, Punjab, is under construction and is announced to start by 2022. Other RRPCL projects in Ratnagiri and a joint venture of HPCL and GAIL are delayed. 

India’s ethylene demand is projected to increase at CAGR of 4.87% from 2018 to 2040.Petrochemical companies in India have been using naphtha from integrated refineries and are getting higher cash margins. However, under the current scenario of ethane-based crackers having higher margins, companies must plan strategies to remain competitive. Stratas Advisors’  petrochemical competitiveness score helps petrochemical companies to devise strategies to remain competitive. The score considers nine parameters as shown above to scale each petrochemical plant.  

Of the five most-competitive petrochemical plants in India, three are from Reliance industries. The table below shows a list of the five most-competitive Indian petrochemical plants.

 

Unit: MMtpa

State

Location

Company

Ethylene Capacity

Petrochemical Competitiveness

(MMtpa)

Score

Gujarat

Dahej

ONGC Petro-Additions Ltd. (OPAL)

1.1

4.70

Gujarat

Hazira

Reliance Industries Ltd.

1.0

5.18

Gujarat

Jamnagar

Reliance Industries Ltd.

1.5

5.27

Gujarat

Dahej

Reliance Industries Ltd.

0.7

4.91

Haryana

Panipat

Indian Oil Co. Ltd.

0.9

4.77

 

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