Petrochemicals Industry

Billionaire Gautam Adani's group has teamed up with Thailand's Indorama Resources Ltd for a foray into the petrochemical business as the ports-to-energy conglomerate looks to expand in adjacencies. Adani Petrochemicals Ltd, a subsidiary of the group's flagship Adani Enterprises Ltd, "has completed the incorporation process of a joint venture company namely Valor Petrochemicals Ltd (VPL)... with Indorama Resources Ltd, Thailand," Adani Enterprises said in a stock exchange filing. Adani Petrochemicals and Indorama will hold 50 per cent stake each in the joint venture. "VPL is incorporated with the objective to set up a refinery, petrochemical and chemical business," it said. Adani Petrochemicals was incorporated to set up refineries, petrochemicals complexes, speciality chemicals units, hydrogen and related chemicals plants and other similar units in a phased manner. Group chairman Gautam Adani had in 2022 stated that the conglomerate is looking to invest more than USD 4 billion in

Fearing that countries like China may take advantage of low import duty to dump petrochemical products in India, a top trade body has sent an SOS to the government seeking hike in customs duty to protect the domestic industry and jobs. The Petrochemicals and Plastic Committee of the Federation of Indian Chambers of Commerce and Industry (FICCI) has written to Ministry of Chemicals and Fertilizers seeking hike in customs or import duty on polypropylene and polyethylene - vastly used in automobiles, packaging, agriculture, electronics and medical devices as well as in construction - from 7.5 per cent to 12.5 per cent. India is short on petrochemicals. Taking into account the capacity additions announced so far, the projected deficit of polypropylene and polyethylene is likely to reach 12 million tonne per annum or USD 12 billion at current price levels by 2030. While the domestic Indian producers are caught in the cyclical nature of the business, China is scaling up petrochemicals ...

RIL's exports are at a five-quarter low in value terms, and a 15-quarter low as share in O2C revenues

He said India's per capita petrochemical consumption is far below developed nations, which offers opportunities of higher investment in the sector

India's annual consumption of refined fuels and petrochemicals is expected to rise steadily by 4-5 per cent and 7-8 per cent in the 'foreseeable future'

Why state-run oil companies are spending billions on petchem capacity, amid oversupply and weak margins

IOCL to have $1 trillion turnover by 2047, supply 1/8th of India's energy needs

The Adani Group will commission the first phase of a USD 4 billion PVC project by December 2026, making its foray into the petrochemicals sector that is marked by a mismatch between domestic demand and supply, sources said. Polyvinyl chloride (PVC) - the third-most common synthetic plastic polymer made worldwide - is used to make products such as raincoats, shower curtains, window frames, pipes for indoor plumbing, medical equipment, wire & cable insulation, bottles, credit cards, and flooring. India's annual PVC demand is roughly 4 million tonne but domestic production capacity is only about 1.5 million tonne, resulting in a supply-demand mismatch. With this disparity between domestic output and consumption expected to widen with an increase in consumption, Adani Group is looking to tap into the sector. Adani Enterprises, the group's flagship firm, is setting up a petrochemical cluster in Mundra in Gujarat. Within this cluster, it aims to set up a PVC plant with a capacity of 2 ..

Equity infusion, capital revamp of petrochemicals producer on cards

Deepak Fertilisers and Petrochemicals Corporation Ltd has posted 16 per cent decline in consolidated net profit to Rs 214.79 crore for the quarter ended March 2024. Its net profit stood at Rs 254.88 crore in the year-ago period. Total income fell to Rs 2,158.56 crore in the quarter from Rs 2,810.73 crore in the year-ago period, according to a regulatory filing on Wednesday. During 2023-24, the company's net profit declined to Rs 442.51 crore from Rs 1,210.10 crore in the preceding year. Total income fell to Rs 8,798.85 crore from Rs 11,384.71 crore.

The new ethane cracking unit aims to meet the domestic demand for petrochemicals, which is projected to nearly triple to $1 trillion by 2040

Chemicals and fertilisers manufacturing company will expand domestic capacity and may look for tie-ups, says Ashwin Muthiah

Customs duty concession demand on petrochemical products such as polypropylene and polyethylene, used primarily in the plastics industry, may act as a sticking point in the early conclusion of talks for the proposed free-trade agreement (FTA) between India and Oman, according to an official. Negotiations for the pact, officially dubbed the Comprehensive Economic Partnership Agreement (CEPA), are in the last phase. Certain domestic players from both public and private sectors are opposing duty concessions on these products under the agreement. They are claiming that Oman provides huge subsidies to its industry on raw materials for the production of these petrochemical products. According to them, if India would give duty concessions on these already subsidised products, it would be a double advantage for Omani firms. The government official said that they are holding talks with domestic players on the issue. Officials of the two countries concluded the second round of talks for th

Potential risks include volatile gas prices. Also as of now, petrochemicals spreads are still falling. But the stock, which hit a record high of Rs 164.25 in intra-day trade on Friday

The 400,000 tonnes per annum polypropylene unit will be constructed in about 46 months from the date of the investment approval, the company said in a statement

While producers remain bullish longer term, largely off the back of economic growth in India and China, the splurge in new capacity is weighing on markets near term

Mangalore Refinery and Petrochemicals Ltd (MRPL) on Wednesday reported return to profitability in the July-September quarter on the back of a refining margin boost. Net profit of Rs 1,059 crore in July-September is compared with a loss of Rs 1,789 crore in the same period a year back, the company said in a statement. The firm earned USD 17.11 on turning every barrel of crude oil into fuels like petrol and diesel in the quarter as against a negative gross refining margin of USD 4.46 per barrel in the same period last year when the international oil market was volatile in the aftermath of Russia's invasion of Ukraine. Revenue from operations however dropped to Rs 22,844 crore in Q2 from Rs 28,453 crore last year largely because of lower oil prices. PL said it had a record gross crude throughput in July of 1.43 million tonnes in July, surpassing the previous best of 1.42 million tonnes in July 2019. Before a maintenance shutdown, the refinery produced the highest-ever monthly volume o

Companies which exceed their targets earn carbon credits that can be sold to firms which fall short of their goals

Rating agency Icra has revised the outlook on the petrochemicals and basic chemicals industries to negative from stable due to weak demand and global supply glut. Outlook on specialty chemicals remains stable, with profitability expected to moderate in FY2024, but not trigger an outlook change at this stage, it said, adding that the petrochemical and basic chemicals industries are likely to face pressure on operating rates and profitability. "The petrochemicals and basic chemicals industries have been facing headwinds on account of weak demand amid a global supply glut, owing to capacity expansions in several chemicals. "This is likely to exert pressure on the operating rates as well as profitability of the petrochemical and basic chemical players," Icra said in a statement. As for the specialty chemicals segment, while profitability is expected to moderate in FY2024, the extent is expected to be mild enough to not trigger an outlook change at this stage. According to Prashant ...

State-owned Power Finance Corporation (PFC) on Monday signed a pact to provide Rs 1,229 crore term loan to Assam Petrochemicals to implement a 500 tonnes per day methanol plant at Namrup and 200 tonnes per day formalin plant at Boitamari in Assam. "PFC and Assam Petrochemicals Ltd (APL) signed a loan agreement on September 4, 2023, for extending a term loan of Rs 1,229 crore for the implementation of 500 Tons Per Day (TPD) Methanol Plant, including their 11 MW Captive Power Plant (CPP) at Namrup and 200 TPD Formalin Plant, including their Captive 0.90 MW power plant at Boitamari in Assam at an estimated Project Cost of Rs 1,827 Crore," a PFC statement said. The 500 TPD Methanol Plant, including 11 MW CPP, was inaugurated by the Prime Minister on April 14, 2023, on completion. The project, including the 200 TPD Formalin Plant, is scheduled to commence commercial operation by March 31, 2024. The APL is a state public sector undertaking of the Government of Assam (GOA), comprising GOA