Fiber Intermediates Case Study

Fiber Intermediates:
Fiber Intermediates have large production capacity in India. Globally the demand for all categories of Fiber is increasing at a pace of 3-4 MT annually. Polyester is accounted for 70% of the total growth of fiber in all categories in next decade. This global demand scenario has a positive impact on the Indian market as well. Polyester demand in India is likely to grow at 12% Y-o-Y to .5 MPTA. Demand of Polyester will also result into demand growth of PX which is expected to grow up to 0.3 MTPA. With growing demand, it can be said that the capacity addition of PX in India by ONGC-Mangalore Petrochemical and Reliance by 900 KTA and 1.5 MPTA respectively is a step towards right direction. The demand for PET is also estimated
These basic organic chemicals are basically used as feedstock for plastic, fiber and other downstream products. The demand for Benzene in India is growing steadily and has reached almost 600 KTA which is expected to increase further by another 400 KTA by the end of 12th 5 year plan. There is a need for capacity expansion for Benzene. The primary source for benzene supply is reformate or toluene transalkylation based production units which accounted for about 400 KTA and 620 KTA of capacity respectively. Lower purity Benzene from coke ovens also accounts for small amount of supply addition. A new aromatic complex with Benzene capacity of 275 KTA has been set up in Mangalore by Mangalore Refinery which is a subsidiary of ONGC. A new grass root petrochemical complex with 135 KTA benzene extraction capacities is being planned to be commissioned by OPAL which is a subsidiary of ONGC. The major domestic demand is likely to come from Cyclohexane, Phenol sectors which are expected to see substantial growth through 2015-16.In line with the demand, local availability will also increase and will most likely supersede demand. The main producer of TDI Grade Toluene in India is RIL. On purpose Toluene is produced only by three refineries in India and with no capacity expansion planned yet; India will continue to import Toluene to meet domestic demand. Ortho Xylene is used for a
Petrochemicals industry is also a important contributor to the exchequer of the country where polymer Segment alone contributes around 8,000 crores of Indian rupees in form of taxes and import-export duties. Slow growth in this industry will hence result into smaller government income and larger fiscal deficit which will have an adverse impact on the overall economy. Identifying the huge potential and importance of the petrochemical sector, National policy on petrochemicals (“Policy Resolution for Petrochemicals” published in Gazette on April 30, 2007), released by the government has identified the need of a sustained growth in this sector for coming years. But desired growth can only be obtained and sustained with the correct policy frame work in place which will not only help petrochemical sector to grow but also revitalize the dependent sectors to increase domestic demand. India is a net