|
|
India Chemicals Report 2009Published by: Business Monitor International Published: Jul. 13, 2009 - 55 Pages Table of Contents
AbstractIndustry OverviewWith the onset of the global economic crisis, BMI believes that chemical export growth in India will slowdramatically in 2009 and 2010. This view is supported by the Indian Chambers of Commerce andIndustry, which announced that exports in the overall Indian economy fell for the fifth month in a row inFebruary 2009. The global economic downturn has slashed demand for Indian products and thegovernment has now reduced its export target to US$170bn for the 2008/2009 financial year, down froman initial forecast of US$200bn. Exports are expected to reach only US$175bn in the 2009/2010economic year. Yet certain sectors, which are particularly sensitive to the economic cycle, may see flat ornegative growth. This includes industries such as engineering goods, gems and jewellery, and chemicals. Company Developments In March 2009 Reliance Industries agreed a deal with 12 fertiliser firms to supply natural gas from itslargest natural gas find, located in the Krishna Godavari Basin. The government has given fertilisercompanies priority for the gas, as they face feedstock shortages. Reliance will initially produce 15mn cum of gas per day from the basin. By July 2009 output will have increased to 40mn cu m per day, rising to100mn cu m per day by 2010. Fertiliser companies will benefit from cheaper gas, allowing them to stopusing more costly fuels such as naphtha. Meanwhile, the Indian government will save money as it will beable to reduce subsidies to the fertiliser industry. In June 2008, ONGC announced that it was exitingfrom its planned INR250bn (US$5bn) refinery and petrochemical project at Kakinada, in Andhra PradeshProvince. One of the main reasons cited for ONGC pulling out of the project is that it had sought taxincentives totalling INR160bn (US$3.2bn) from Andhra Pradesh, which were refused. The refinery wasto have a capacity of 15mn tonnes a year. Projects And Expansions In March 2009, TCI Sanmar Chemicals finished raising funding for a US$868mn manufacturing projectin Egypt. The new production facilities will be located in Port Said and will include the largest chloralkaliplant in Egypt. This will have a vinyl chloride monomer (VCM) capacity of 400,000 tonnes peryear, of which around half will be converted into PVC. Meanwhile, the plant will have a caustic sodacapacity of 200,000 tonnes per year. The unit is expected to come on-stream in 2010. Industry Outlook In March 2009, the Indian government announced that it was working on a plan to provide stimulus to thechemical and petrochemical industry by revising the excise and customs duty on raw materials. It isplanning to cut excise duty on mono ethyl glycol (MEG) to 4% from 8%, and to waive the prevailing 5%custom duty on naphtha. This decision can be viewed as an effort by the government to protect itschemical industry, which is facing challenges from a drastic fall in prices and a slump in export orders,and a significant drop in demand in the domestic market as a result of the global economic crisis. Get Full Details About This Report >> |
|
|||
|
About MarketResearch.com
|
||||