Chemicals & Petrochemicals

Outline

Global Outlook1

India Scenario2

Advantage Gujarat3

Opportunities Galore4

PCPIR5

• Chemical Industry touches nearly every good-producing sector,making contribution through direct, indirect and induced impacts

•Directly, the chemical industry added US$1.1 trillion to world GDPand employed 15 million people

• Global Petrochemicals market size was estimated at US$ 662 billionin 2020

• For every US$1 generated by the chemical industry, a further US$4.20 is generated elsewhere in the global economy

• The industry invested an estimated US$ 51 billion in Research andDevelopment (R&D), supporting 1.7 million jobs in 2017

•The top three countries leading the Global Chemical Markets areChina, USA & Japan

• The Asia-Pacific chemical industry, generates 45% of the industry’stotal annual economic value, and 69% of all jobs supported

• India is the 8th largest importer and 14th largest exporter ofchemicals in the world

Global Outlook

5th Largest

Global Manufacturing

Sector

US$ 5.7 Trillion

Total Contribution to

World GDP

~ 7 %

Contribution to World GDP

120 million

Direct & Indirect Jobs

Supported

Source International Council of Chemical Associations; Market Watch

Quick Facts

•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% toIndia’s Total Exports and was valued at US$ 43.6 Billion in 2018-19

•Demand of Chemical products is expected to grow at 9% per annumbetween 2018-2023

India Scenario

Source: : Annual Report 2018-19 Department of Chemicals and Petrochemicals-GoI, ASI 2017-18, Invest India, DPIIT, IBEF

80,000+

Products produced in India

6th Rank

In the world with a share of 3.4% in Global Output

7th Highest

FDI Attracting Sector with US$

17.4 Billion

2 million

People employed nationwide in the

sector

25.14

17.25

14.75

6.27

6.38

11.64

9.54

3.53 India's Chemical Industry (US$ Billion)

Basic Chemicals

Fertilizers & Nitrogen Compounds

Plastics & Synthetic Rubber

Pesticides & AgrochemicalProductsPaints, Coatings, Ink, Etc.

Comestics

Quick Facts

•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

•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 of102 MMTPA which accounts for 41% of India’s total capacity

Advantage Gujarat

Source: ASI 2017-18, DGFT, PPAC, Department of Chemicals & Petrochemicals Annual Report 2019-20

33.35

16.35

5.77 5.46 4.96

0

20

40

% Share Total Output

Chemical & Chemical Products

Gujarat Maharashtra Uttar Pradesh

Tamil Nadu West Bengal

37.05

13.94

6.48 5.55 5.48

0

10

20

30

40

% Share Total Output

Coke & Refined Petroleum Products

Gujarat Maharashtra Karnataka

Kerala Haryana

World’s Largest

Petroleum Refining Hub at

Jamnagar

India’s 1st

Petroleum, Chemicals &

Petrochemicals Investment

Region

India’s 1st

Chemical Port in Dahej

Quick Facts

2,500+

industrial manufacturing

units

Export Hub of India

Source: DGCIS

692 ; 34%

1,320 ; 66%

Inorganic Chemicals

835 , 36%

1,457 , 64%

Man-made Filament

7,013 ; 38%11,268 ;

62%

Organic Chemicals

406 , 21%1,499 , 79%

Man-made Fibres

2,496 ; 54%

2,130 ; 46%

Misc. Chemicals

Gujarat Ranks 1st in Export in India for the Export of Chemical & Petrochemical products across:

All Values in US$ Million

3,604 ; 45%

4,411 ; 55%

Plastics

745 ; 23%2,461 ; 77%

Rubber

Gujarat

RoI

Exports from

The top 10 Export Destinations are: USA, China, Brazil, UAE, Germany, Indonesia, UK, Netherlands, South Africa & Belgium

Gujarat’s Petrochemicals value chain strength

Source: ASI 2017-18, DGFT, PPAC, Department of Chemicals & Petrochemicals Annual Report 2019-20

• 26% of India’s Onshore Crude Oil production

• 15% of Onshore Natural Gas production

~150 MMTPA crude oil import capacity

102 MMTPA refining capacity across 4 complexes

Home to major petrochemical complexes

Clusters of derivatives, plastics and polymers manufacturing, spread across the State

Co

mp

on

en

ts

ProductionPort

InfrastructureProcessing

UnitsPetrochemical

ComplexesManufacturing

Clusters

3 LNG regasification terminals with 24 MMTPA combined capacity

>1 MMTPA cracking capacity

Major CompaniesMajor Companies Major Companies

Supporting Infrastructure of Gujarat

1

2

3

12

4

5

11

9

14

15

13

8

10

7

6

1. RIL, Jamnagar - 68.2 MMTPA

2. Nayara, Vadinar – 20 MMTPA

3. Indian Oil, Koyali – 13.7 MMTPA

Refining Complexes

4. Petronet, Dahej- 17.5 MMTPA

5. Shell, Hazira – 5.2 MMTPA

6. GSPC, Mundra – 1.5 MMTPA

7. Upcoming Floating Storage and Regasification Unit (FSRU; floating LNG terminal), Bhavnagar

LNG Terminals

8. Sikka Oil Jetty (operated by Reliance Industries)9. Vadinar Oil Terminal (operated by Kandla Port)

Oil Terminal / Jetty

10. Dahej (Dedicated for Chemicals)

11. Mundra

Ports

12. PCPIR (Petroleum, Chemicals & Petrochemicals Investment Region)

13. Chemicals and Petrochemicals: Vadodara, Ankleshwar, Bharuch, Dahej, Surat, Hazira

14. Chemicals & Plastics: Ahmedabad

15. Chemicals: Mithapur

Manufacturing Clusters

Common Environmental Infrastructure of Gujarat

Sr. No.

Description Existing Under

ExpansionNew Under

Implementation Total

1 Common Effluent Treatment Plant (CETP) 33 8 22 55

2Common Treatment Storage Disposal Facility (TSDF)

8 - 7 15

3Common 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

A global shift of Manufacturing companies from China has opened up huge manufacturing and export opportunity for India

Per capita consumption of chemicals inIndia is 1/10th of the world’s average

• 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

Manufacturing sector contributing over 35% to State GDP. Strong manufacturing sector leads to continued high demand for chemicals, petrochemicals & intermediates

• 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

• Presence of manufacturing unitsacross the chemicals andpetrochemicals value chain helpsoptimize supply chains and logisticscosts

• Availability of Skilled scienceprofessionals, World-classengineering and strong R&Dcapabilities.

Investment Opportunities

Manufacturing of Specialty, Textile, Construction &

Automotive Chemicals

Development of Chemicals Logistics

Park at PCPIR Dahej: Encompassing

Container Freight Station (CFS)

Development of Tank Farms at

Dahej PCPIR for storage of

Petroleum Oil & Liquids

Technology Partnership with

GACL for their upcoming plants

Manufacturing of feedstock for

polymer industry: Ethylene and

Propylene

Manufacturing of Aniline, Acrylic Acid, Methyl Diphenyl Di-

isocyanate (MDI) Phenol and Acetone

Manufacturing of Poly Vinyl Chloride

and Styrene to reduce import

dependence

Partners in our progress

Source: GIDC

Indian Companies Indian PSUs Multinational Companies

Petroleum, Chemicals &

Petrochemicals Investment Region

(PCPIR)

Source: PCPIR Sector Profile

Entire PCPIR area is falling within 50 kms of Dedicated Freight Corridor (DFC)

alignment proposed on the Delhi Mumbai Industrial Corridor

India’s 1st Petroleum, Chemical and Petrochemical Investment Region (PCPIR)

Total area 453 sq.km

Employment

184,00

Investment made till date

US$ 13.5 bn

Infrastructure Development

US$ 2.4 bn

Concentration of Petroleum, Chemical & Petrochemical estates around PCPIR

Adequate water available from Narmada River

Port & Waterfront; Chemical Port and Storage Facility at Dahej

PCPIR Advantages

Rich natural resources and feedstock

Near NH-8 and Delhi Mumbai Trunk Rail Line; SH linking the region with NH-8

LNG regasification terminal at Dahej

Robust supporting infrastructure - road, rail, port, power, gas, water

Effluent disposal pipelines, solid waste disposal sites

1.1 MMTPA multi-feed cracker

PCPIR Snapshot

PCPIR Development Plan

Source: PCPIR Sector Profile

Major Industries in PCPIR

Source: PCPIR Sector Profile

LNG Petronet ABG Shipyard

OPaLBASFProjects Commissioned

Projects Under Implementation

New PCPIR Policy 2020-2035

Source: PCPIR Sector Profile

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 ofcommercial operation.

Total incentives offered shall be capped at 100% of the investments made in land and equipment or for theperiod 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 exemptedfor the next 5 years. For the third 5-year period, 100% of ploughed back profit shall be exempted fromcorporate 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

Industries Commissionerate

Block No. 1, 2nd Floor, Udyog Bhavan, Gandhinagar, Gujarat, India - 382 010http://ic.gujarat.gov.in/ Phone: 079-23252683E-mail: comind@gujarat.gov.in

Industrial Extension Bureau (iNDEXTb)

Block No. 18, 2nd floor, Udyog Bhavan, Gandhinagar, Gujarat, India – 382 010www.indextb.com Phone: 079-2325 6009E-mail: md.indextb@gmail.com

Connect for more Information