Chemicals &

Petrochemicals
Outline

1 Global Outlook

2 India Scenario

3 Advantage Gujarat

4 Opportunities Galore

5 PCPIR
 Global Outlook
• Chemical Industry touches nearly every good-producing sector,
making contribution through direct, indirect and induced impacts Quick Facts
• Directly, the chemical industry added US$1.1 trillion to world GDP
and employed 15 million people
• Global Petrochemicals market size was estimated at US$ 662 billion US$ 5.7 Trillion 5th Largest
in 2020
Total Global
• For every US$1 generated by the chemical industry, a further US$ Contribution to Manufacturing
4.20 is generated elsewhere in the global economy World GDP Sector

• The industry invested an estimated US$ 51 billion in Research and

Development (R&D), supporting 1.7 million jobs in 2017
• The top three countries leading the Global Chemical Markets are ~7% 120 million
China, USA & Japan
Contribution to Direct &
• The Asia-Pacific chemical industry, generates 45% of the industry’s
World GDP Indirect Jobs
total annual economic value, and 69% of all jobs supported Supported
• India is the 8th largest importer and 14th largest exporter of
chemicals in the world
Source International Council of Chemical Associations; Market Watch
 India Scenario
• Total Turnover of Industry in 2017-18 was:
 US$ 94.6 Billion for the Chemical Industry Quick Facts
 US$ 137 Billion for the Coke & Petroleum Industry
• Chemical & petrochemical products contributed over 13.3% to
India’s Total Exports and was valued at US$ 43.6 Billion in 2018-19 6th Rank 80,000+
India's Chemical Industry (US$ Billion) In the world with Products
3.53
a share of 3.4% produced in India
9.54 Basic Chemicals
in Global Output
25.14
Fertilizers & Nitrogen Compounds
11.64
Plastics & Synthetic Rubber
6.38 Pesticides & Agrochemical
17.25 Products 7th Highest 2 million
6.27
Paints, Coatings, Ink, Etc.
14.75
FDI Attracting People employed
Comestics Sector with US$ nationwide in the
17.4 Billion sector
• Demand of Chemical products is expected to grow at 9% per annum
between 2018-2023
Source: : Annual Report 2018-19 Department of Chemicals and Petrochemicals-GoI, ASI 2017-18, Invest India, DPIIT, IBEF
 Advantage Gujarat
• Gujarat is leading the way with a turnover of
 US$ 31.5 Billion, in the Chemical Industry Quick Facts
 US$ 50.8 Billion, in the Coke & Petroleum Industry

Chemical & Chemical Coke & Refined

40
33.35 Products Petroleum Products World’s Largest 2,500+
40 37.05
Petroleum industrial
30
20 16.35 Refining Hub at manufacturing
20 13.94 Jamnagar
5.77 5.46 4.96 6.48
units
10 5.55 5.48
0 0
% Share Total Output % Share Total Output
Gujarat Maharashtra Uttar Pradesh Gujarat Maharashtra Karnataka
Tamil Nadu West Bengal Kerala Haryana
India’s 1st India’s 1st
• Gujarat holds a share of 41% out of India’s Total Chemical & Petroleum,
Petrochemical Exports which accounts for 5% of India’s Total & Chemicals & Chemical Port in
27% of Gujarat’s Total Export respectively Petrochemicals Dahej
Investment
• The state has 4 refining complexes with a combined capacity of Region
102 MMTPA which accounts for 41% of India’s total capacity
Source: ASI 2017-18, DGFT, PPAC, Department of Chemicals & Petrochemicals Annual Report 2019-20
 Export Hub of India
Gujarat Ranks 1st in Export in India for the Export of Chemical & Petrochemical products across:
Inorganic Chemicals Organic Chemicals Plastics Rubber

692 ; 34% 7,013 ; 4,411 ; 745 ; 23%

3,604 ;
11,268 ; 38% 55% 2,461 ;
1,320 ; 66% 45%
62% 77%

Man-made Filament Man-made Fibres Misc. Chemicals

All Values in
835 , US$ Million
406 , 21%
36% 2,130 ; 2,496 ;
1,457 1,499 , Exports from
46% 54%
, 64% 79%
Gujarat
RoI

The top 10 Export Destinations are: USA, China, Brazil, UAE, Germany, Indonesia, UK, Netherlands,
South Africa & Belgium
Source: DGCIS
Gujarat’s Petrochemicals value chain strength

Port Processing Petrochemical Manufacturing

Production
Infrastructure Units Complexes Clusters

~150 MMTPA 102 MMTPA Home to major Clusters of

• 26% of India’s crude oil import refining capacity petrochemical derivatives, plastics
Onshore Crude capacity across 4 complexes and polymers
Oil production complexes manufacturing,
• 15% of Onshore spread across the
Natural Gas State
production
Components

Major Companies 3 LNG Major Companies Major Companies

regasification >1 MMTPA
terminals with 24 cracking capacity
MMTPA
combined
capacity

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

Refining Complexes
Ports
1. RIL, Jamnagar - 68.2 MMTPA
10. Dahej (Dedicated for Chemicals)
2. Nayara, Vadinar – 20 MMTPA
11. Mundra
3. Indian Oil, Koyali – 13.7 MMTPA
6 8
11
LNG Terminals 1
14
4. Petronet, Dahej- 17.5 MMTPA
5. Shell, Hazira – 5.2 MMTPA 2 Manufacturing Clusters
15 9
6. GSPC, Mundra – 1.5 MMTPA
12. PCPIR (Petroleum,
7. Upcoming Floating Storage and Chemicals & Petrochemicals
Regasification Unit (FSRU; floating LNG 3
7 Investment Region)
terminal), Bhavnagar 12
13. Chemicals and
4
Petrochemicals: Vadodara,
10 13 Ankleshwar, Bharuch, Dahej,
Oil Terminal / Jetty Surat, Hazira
5
8. Sikka Oil Jetty (operated by Reliance Industries) 14. Chemicals & Plastics:
9. Vadinar Oil Terminal (operated by Kandla Port) Ahmedabad
15. Chemicals: Mithapur
Common Environmental Infrastructure of Gujarat

Sr. Under New Under

Description Existing Total
No. Expansion Implementation
1 Common Effluent Treatment Plant (CETP) 33 8 22 55
Common Treatment Storage Disposal Facility
2 8 - 7 15
(TSDF)
Common Hazardous Wastes Incinerator
3 6 - 3 9
(CHWIF)
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

Per capita consumption of chemicals in

Manufacturing sector contributing over India is 1/10th of the world’s average
35% to State GDP. Strong manufacturing
sector leads to continued high demand for
chemicals, petrochemicals & intermediates • Presence of manufacturing units
across the chemicals and
petrochemicals value chain helps
A global shift of Manufacturing companies optimize supply chains and logistics
from China has opened up huge costs
manufacturing and export opportunity for
• Availability of Skilled science
India
professionals, World-class
engineering and strong R&D
capabilities.
• Booming automotive sector in Gujarat
gives rise to demand for Automotive
Chemicals
• Growing Plastics industry of the state • Demand from the urban consumer:
generates demand for petrochemical 43% of Gujarat’s population resides in
derivatives. urban areas, fueling demand for
consumer chemicals, plastics, paints,
• Gujarat is a major producer of crops such
cosmetics etc.
as wheat, rice, groundnut, bajra, castor,
cotton and mango which ensures • Six Smart Cities being developed in
continued demand for fertilizers and Gujarat will lead to increased demand
agro-chemicals for Construction Chemicals and Paints
Investment Opportunities

Development of Development of Technology

Manufacturing of
Chemicals Logistics Tank Farms at Partnership with
Specialty, Textile,
Park at PCPIR Dahej: Dahej PCPIR for GACL for their
Construction &
Encompassing storage of upcoming plants
Automotive
Container Freight Petroleum Oil &
Chemicals
Station (CFS) Liquids

Manufacturing of Manufacturing of Manufacturing of

feedstock for Aniline, Acrylic Acid, Poly Vinyl Chloride
polymer industry: Methyl Diphenyl Di- and Styrene to
Ethylene and isocyanate (MDI) reduce import
Propylene Phenol and Acetone dependence
 Partners in our progress

Indian Companies Indian PSUs Multinational Companies

Source: GIDC
 Petroleum,
Chemicals &
Petrochemicals
Investment Region
(PCPIR)
 PCPIR Snapshot
India’s 1st Petroleum, Chemical and Petrochemical Investment Region (PCPIR)

PCPIR Advantages

Concentration of Petroleum, Chemical &

Total area 453 sq.km Petrochemical estates around PCPIR
Port & Waterfront; Chemical Port and
Storage Facility at Dahej
Investment made till date

US$ 13.5 bn Adequate water available from Narmada River

Rich natural resources and feedstock

Infrastructure Development LNG regasification terminal at Dahej
US$ 2.4 bn Near NH-8 and Delhi Mumbai Trunk Rail Line;
SH linking the region with NH-8

Employment
Robust supporting infrastructure - road, rail,
Entire PCPIR area is falling within 50 kms port, power, gas, water
of Dedicated Freight Corridor (DFC) 184,00 Effluent disposal pipelines, solid waste
alignment proposed on the Delhi Mumbai disposal sites
Industrial Corridor
1.1 MMTPA multi-feed cracker
Source: PCPIR Sector Profile
 PCPIR Development Plan

Source: PCPIR Sector Profile

 Major Industries in PCPIR

Projects Commissioned
BASF OPaL

LNG Petronet ABG Shipyard

Projects Under Implementation

Source: PCPIR Sector Profile

 New PCPIR Policy 2020-2035
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 of
commercial operation.
Total incentives offered shall be capped at 100% of the investments made in land and equipment or for the
period 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 exempted
for the next 5 years. For the third 5-year period, 100% of ploughed back profit shall be exempted from
corporate 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

Source: PCPIR Sector Profile

Connect for more Information

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

Industrial Extension Bureau (iNDEXTb)

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