Chemicals &
Petrochemicals
Outline
1
Global Outlook
2
India Scenario
3
Advantage Gujarat
4
Opportunities Galore
5
PCPIR
Global Outlook
• Chemical Industry touches nearly every good-producing sector,
making contribution through direct, indirect and induced impacts
Quick Facts
• Directly, the chemical industry added US$1.1 trillion to world GDP
and employed 15 million people
• Global Petrochemicals market size was estimated at US$ 662 billion
in 2020
• For every US$1 generated by the chemical industry, a further
4.20 is generated elsewhere in the global economy
US$
US$ 5.7 Trillion
5th Largest
Total
Contribution to
World GDP
Global
Manufacturing
Sector
~7%
120 million
Contribution to
World GDP
Direct &
Indirect Jobs
Supported
• The industry invested an estimated US$ 51 billion in Research and
Development (R&D), supporting 1.7 million jobs in 2017
• The top three countries leading the Global Chemical Markets are
China, USA & Japan
• The Asia-Pacific chemical industry, generates 45% of the industry’s
total annual economic value, and 69% of all jobs supported
• India is the 8th largest importer and 14th largest exporter of
chemicals in the world
Source International Council of Chemical Associations; Market Watch
India Scenario
• Total Turnover of Industry in 2017-18 was:
 US$ 94.6 Billion for the Chemical Industry
 US$ 137 Billion for the Coke & Petroleum Industry
• Chemical & petrochemical products contributed over 13.3% to
India’s Total Exports and was valued at US$ 43.6 Billion in 2018-19
3.53
India's Chemical Industry (US$ Billion)
Basic Chemicals
9.54
25.14
11.64
Quick Facts
6th Rank
80,000+
In the world with
a share of 3.4%
in Global Output
Products
produced in India
7th Highest
2 million
FDI Attracting
Sector with US$
17.4 Billion
People employed
nationwide in the
sector
Fertilizers & Nitrogen Compounds
Plastics & Synthetic Rubber
6.38
17.25
6.27
14.75
Pesticides & Agrochemical
Products
Paints, Coatings, Ink, Etc.
Comestics
• Demand of Chemical products is expected to grow at 9% per annum
between 2018-2023
Source: : Annual Report 2018-19 Department of Chemicals and Petrochemicals-GoI, ASI 2017-18, Invest India, DPIIT, IBEF
Advantage Gujarat
• Gujarat is leading the way with a turnover of
 US$ 31.5 Billion, in the Chemical Industry
 US$ 50.8 Billion, in the Coke & Petroleum Industry
40
Coke & Refined
Petroleum Products
Chemical & Chemical
Products
33.35
40
37.05
30
16.35
20
Quick Facts
20
5.77
5.46
4.96
13.94
6.48
10
5.55
5.48
World’s Largest
2,500+
Petroleum
Refining Hub at
Jamnagar
industrial
manufacturing
units
India’s 1st
Petroleum,
Chemicals &
Petrochemicals
Investment
Region
India’s 1st
0
0
Gujarat
Tamil Nadu
% Share Total Output
Maharashtra
Uttar Pradesh
West Bengal
Gujarat
Kerala
% Share Total Output
Maharashtra Karnataka
Haryana
• Gujarat holds a share of 41% out of India’s Total Chemical &
Petrochemical Exports which accounts for 5% of India’s Total &
27% of Gujarat’s Total Export respectively
• The state has 4 refining complexes with a combined capacity of
102 MMTPA which accounts for 41% of India’s total capacity
Source: ASI 2017-18, DGFT, PPAC, Department of Chemicals & Petrochemicals Annual Report 2019-20
Chemical Port in
Dahej
Export Hub of India
Gujarat Ranks 1st in Export in India for the Export of Chemical & Petrochemical products across:
Inorganic Chemicals
692 ; 34%
1,320 ; 66%
Man-made Filament
1,457
, 64%
835 ,
36%
Organic Chemicals
7,013 ;
11,268 ; 38%
62%
Man-made Fibres
406 , 21%
1,499 ,
79%
Plastics
4,411 ;
55%
Rubber
745 ; 23%
2,461 ;
77%
3,604 ;
45%
Misc. Chemicals
2,130 ;
46%
2,496 ;
54%
All Values in
US$ Million
Exports from
Gujarat
RoI
The top 10 Export Destinations are: USA, China, Brazil, UAE, Germany, Indonesia, UK, Netherlands,
South Africa & Belgium
Source: DGCIS
Gujarat’s Petrochemicals value chain strength
Production
•
Components
•
26% of India’s
Onshore Crude
Oil production
15% of Onshore
Natural Gas
production
Major Companies
Port
Infrastructure
~150 MMTPA
crude oil import
capacity
3 LNG
regasification
terminals with 24
MMTPA
combined
capacity
Processing
Units
102 MMTPA
refining capacity
across 4
complexes
Petrochemical
Complexes
Home to major
petrochemical
complexes
Major Companies
>1 MMTPA
cracking capacity
Source: ASI 2017-18, DGFT, PPAC, Department of Chemicals & Petrochemicals Annual Report 2019-20
Manufacturing
Clusters
Clusters of
derivatives, plastics
and polymers
manufacturing,
spread across the
State
Major Companies
Supporting Infrastructure of Gujarat
Refining Complexes
Ports
1. RIL, Jamnagar - 68.2 MMTPA
10. Dahej (Dedicated for Chemicals)
2. Nayara, Vadinar – 20 MMTPA
11. Mundra
3. Indian Oil, Koyali – 13.7 MMTPA
6
8
11
LNG Terminals
1
14
4. Petronet, Dahej- 17.5 MMTPA
5. Shell, Hazira – 5.2 MMTPA
6. GSPC, Mundra – 1.5 MMTPA
15
7. Upcoming Floating Storage and
Regasification Unit (FSRU; floating LNG
terminal), Bhavnagar
9
Manufacturing Clusters
2
12. PCPIR (Petroleum,
Chemicals & Petrochemicals
Investment Region)
3
7
12
4
Oil Terminal / Jetty
8. Sikka Oil Jetty (operated by Reliance Industries)
9. Vadinar Oil Terminal (operated by Kandla Port)
10
5
13
13. Chemicals and
Petrochemicals: Vadodara,
Ankleshwar, Bharuch, Dahej,
Surat, Hazira
14. Chemicals & Plastics:
Ahmedabad
15. Chemicals: Mithapur
Common Environmental Infrastructure of Gujarat
Sr.
No.
Description
Existing
Under
Expansion
New Under
Implementation
Total
1
Common Effluent Treatment Plant (CETP)
33
8
22
55
2
Common Treatment Storage Disposal Facility
(TSDF)
8
-
7
15
3
Common Hazardous Wastes Incinerator
(CHWIF)
6
-
3
9
4
Treated Effluent Conveyance Pipelines
7
-
3
10
 The existing 33 CETP in the state have a total hydraulic capacity of 716 MLD and serve approximately 6, 733
individual units. With the new plants and expansion, there will be a capacity addition of 440 MLD.
 The existing 8 TSDF in the state have a total hydraulic capacity of 79,32,000 MT and serve approximately
5,483 individual units. There 7 under implementation TSDF have a combined capacity of 1,16,50,012 MT.
 The existing 6 CHWIF in the state have a total capacity of 392 MT/Day and serve approximately 3,698
individual units. There 3 under implementation CHWIF have a combined capacity of 152 MT/Day.
Source: GPCB Annual Report 2018-19
Growth Drivers
Manufacturing sector contributing over
35% to State GDP. Strong manufacturing
sector leads to continued high demand for
chemicals, petrochemicals & intermediates
A global shift of Manufacturing companies
from China has opened up huge
manufacturing and export opportunity for
India
• Booming automotive sector in Gujarat
gives rise to demand for Automotive
Chemicals
• Growing Plastics industry of the state
generates demand for petrochemical
derivatives.
• Gujarat is a major producer of crops such
as wheat, rice, groundnut, bajra, castor,
cotton and mango which ensures
continued demand for fertilizers and
agro-chemicals
Per capita consumption of chemicals in
India is 1/10th of the world’s average
• Presence of manufacturing units
across
the
chemicals
and
petrochemicals value chain helps
optimize supply chains and logistics
costs
• Availability
of
Skilled
science
professionals,
World-class
engineering
and
strong
R&D
capabilities.
• Demand from the urban consumer:
43% of Gujarat’s population resides in
urban areas, fueling demand for
consumer chemicals, plastics, paints,
cosmetics etc.
• Six Smart Cities being developed in
Gujarat will lead to increased demand
for Construction Chemicals and Paints
Investment Opportunities
Manufacturing of
Specialty, Textile,
Construction &
Automotive
Chemicals
Development of
Chemicals Logistics
Park at PCPIR Dahej:
Encompassing
Container Freight
Station (CFS)
Manufacturing of
feedstock for
polymer industry:
Ethylene and
Propylene
Development of
Tank Farms at
Dahej PCPIR for
storage of
Petroleum Oil &
Liquids
Manufacturing of
Aniline, Acrylic Acid,
Methyl Diphenyl Diisocyanate (MDI)
Phenol and Acetone
Technology
Partnership with
GACL for their
upcoming plants
Manufacturing of
Poly Vinyl Chloride
and Styrene to
reduce import
dependence
Partners in our progress
Indian Companies
Source: GIDC
Indian PSUs
Multinational Companies
Petroleum,
Chemicals &
Petrochemicals
Investment Region
(PCPIR)
PCPIR Snapshot
India’s 1st Petroleum, Chemical and Petrochemical Investment Region (PCPIR)
PCPIR Advantages
Total area
453 sq.km
Investment made till date
US$ 13.5 bn
Concentration of Petroleum, Chemical &
Petrochemical estates around PCPIR
Port & Waterfront; Chemical Port and
Storage Facility at Dahej
Adequate water available from Narmada River
Rich natural resources and feedstock
Infrastructure Development
US$ 2.4 bn
Entire PCPIR area is falling within 50 kms
of Dedicated Freight Corridor (DFC)
alignment proposed on the Delhi Mumbai
Industrial Corridor
Source: PCPIR Sector Profile
Employment
184,00
LNG regasification terminal at Dahej
Near NH-8 and Delhi Mumbai Trunk Rail Line;
SH linking the region with NH-8
Robust supporting infrastructure - road, rail,
port, power, gas, water
Effluent disposal pipelines, solid waste
disposal sites
1.1 MMTPA multi-feed cracker
PCPIR Development Plan
Source: PCPIR Sector Profile
Major Industries in PCPIR
BASF
OPaL
LNG Petronet
ABG Shipyard
Source: PCPIR Sector Profile
Projects Commissioned
Projects Under Implementation
New PCPIR Policy 2020-2035
Policy proposed for giving boost to the sector by attracting investments to which strengthen the entire ecosystem
Major Incentives that have been proposed in the New Policy are as follows:
• Incentives for Processing and Manufacturing Units:
• 100% of the CGST accrued to the GOI will be reimbursed to the units for a period of 15 years.
• Interest subsidy on term loan taken for investments in land and equipment in excess of 3% per annum
subject to a maximum of reimbursement of 9% per annum for a period of 10 years from the date of
commercial operation.
Total incentives offered shall be capped at 100% of the investments made in land and equipment or for the
period as mentioned above whichever is earlier.
• All Industrial Units in PCPIR whose investment is more than Rs 7,000 Crore in plant & machinery &
buildings shall be exempted from corporate income tax for the first 5 years. 75% income shall be exempted
for the next 5 years. For the third 5-year period, 100% of ploughed back profit shall be exempted from
corporate income tax
• Environmental clearance will be provided for the entire region and hence individual units will not require it
• A digital interface will be created for obtaining all Government stakeholders involved
Source: PCPIR Sector Profile
Connect for more Information
Industries Commissionerate
Block No. 1, 2nd Floor, Udyog Bhavan,
Gandhinagar, Gujarat, India - 382 010
http://ic.gujarat.gov.in/
Phone: 079-23252683
E-mail: comind@gujarat.gov.in
Industrial Extension Bureau (iNDEXTb)
Block No. 18, 2nd floor, Udyog Bhavan,
Gandhinagar, Gujarat, India – 382 010
www.indextb.com
Phone: 079-2325 6009
E-mail: md.indextb@gmail.com