PLASTICS

GLOBAL SUPPLY DEMAND SCENARIO j

Dr. Ujval Vaishnav

National Power Corporation of India Limited
Mumbai 14th January 2004
From the humble plastic bag to the latest state of
the art mobile telephone…..

Plastics encompass our daily life so much that it

is virtually impossible to think of a world without
plastics
smaller, lighter, stronger and more importantly
more affordable products
This revolution in just over a century.
100 years earlier: Cellulose, Coal Tar based polymers
Early 1900: Scientists started understanding reactions
leading to polymerization
Mid 1900: Transition to chemicals based on crude oil
PS, Acrylic, PVC, Nylon, PE, Epoxy, PC, Silicones ….

Late 1900: High Performance Polymers: Improved

Molecular Structure, Tailor made polymers,
innovative solutions…
PA, POM, PEEK, LCP...
 PLASTICS : PERFORMANCE 2003

Region Growth (% )
Japan 3
China 5.7
India 9
Asia 7
World 2 -2.5

Asia subdued due to Sars

World lower due to sluggish European Markets
 The Indian Plastic Industry

• Annual turnover Rs.15,0000 mil.

• >20,000 plastic processing units with more

than 2mil. people directly employed

• 4mil. MT prime resin and 1.5 mil MT

reprocessed resin

• Capital investment: Rs. 25,000 cr.

• Growth Rate: 12% p.a.

•chemical world Jan 2003
 The polymer Supply Demand equation dynamics - last decade domestic scenario

3500
3021 3036
3000

2500
'000 MT

2000

1500
892
1000
363
500
0
1990-91 1999-00
Production
Year Consumption
 POLYMER CONSUMPTION FORECAST

000 mts
PLASTIC 2003- 04 2004-05 2005-06
LDPE / LLDPE 240 850 954
HDPE 1112 1234 1370
PP 1358 1508 1672
PS 257 285 316
PVC 1021 1133 1257

SOURCE: AIPMA
Capacity Expansion by Major companies

Company KMT Expansion

South Asian Petro / Zimmer (PET) 140
Reliance (PET) 220
Gail (PE) 400
Finolex (PVC) 130
IPCL (PVC) 100
Supreme (PS) 130
PROCESSING

Company Expansion
PVC PIPE SECTOR 90 M/C ADDED
SUPREME 15KT/ YR (BOPS)
JINDAL 70 KT/YR (BOPP)
NEELKAMAL 10 KT/YR
1 BILLION PIECES
MOSER BAER
(DVD's / CD)
 Indian demand scenario (2002)
Demand growth can sustain high levels for a long period. India’s low
per capita consumption of petrochemicals indicate the tremendous
latent demand growth potential.
Consumption of petrochemicals
( '000 tons) LDPE/LLDPE HDPE PP PVC
1994-95 330 410 295 445
1995-96 370 450 330 500
1996-97 400 490 430 560
1997-98 460 490 590 630
Comparative per capita consumption (Kg)
Country Polymer PE PP PVC
India 3 0.9 0.9 0.8
China 7.5 NA NA 2.3
USA 40.8 14.7 8.3 17.8
World Avg. 17.5 NA NA NA
Asia Avg.10 3.6 3.5 2.9
source: Plastimart
 Global Rank in Polymer Consumption

Rank Country 1998 Country 2000 Country 2010

(MMT) (MMT) (MMT)
1 USA 16.6 USA 27.3 USA 38.9
2 Japan 6.4 China 14.4 China 31.3
3 Germany 4.3 Japan 9.1 India 12.5
4 China 3.7 Germany 6.4 Japan 11.5
5 Italy 3.1 S.Korea 4.7 Germany 9.4
6 CIS 2.4 Italy 4.7 S. Korea 7.4
7 France 2.4 France 4.1 Italy 6.8
8 UK 2.2 UK 3.5 Brazil 6.7
9 Taiwan 1.9 India 3.4 CIS 6.2
10 S.Korea 1.8 Brazil 3.4 France 6.1
16 India 1.6 Taiwan 3.3 UK 5.2
 Major players in the Engineering Polymer Industry
global market size: $19bn (2001)

17.4

GE
38.4
DUPONT

12.6 BAYER

TICONA

BASF
9.5
DOW, DSM, TEIJIN,
SOLVAY, MITSUBISHI
12 5.9 OTHERS
4.2