Petrochemicals[1] are chemical products derived from petroleum.

[2] Some chemical compounds made from petroleum are also obtained from
other fossil fuels such as coal or natural gas, or renewable sources such as corn or sugar cane.

The petrochemical industry in India has been one of the fastest growing industries in the country. Since the beginning, the Indian petrochemical industry has
shown an enviable rate of growth. This industry also has immense importance in the growth of economy of the country and the growth and development of
manufacturing industry as well. It provides the foundation for manufacturing industries like construction, packaging, pharmaceuticals, agriculture, textiles etc.

The Indian petrochemical industry is a highly concentrated one and is oligopolistic in nature. Even a few days back, only four major companies viz. Reliance
Industries Ltd (RIL), Indian Petrochemicals Corporation Ltd. (IPCL), Gas Authority of India Ltd. (GAIL) and Haldia Petrochemicals Ltd. (HPL) used to dominate
the industry at a large extent. The recent amalgamation of IPCL with RIL has made the industry more concentrated further, as they jointly account for over 70%
of country's total petrochemical capacity. However, the scene is a bit different for the downstream petrochemical sector, which is highly fragmented in nature with
over 40 companies exist in the market.

The Characteristics of Indian Petrochemical Industry

Petrochemical Industry in India is a cyclical industry. This industry, not only in India but also across the world, is dominated by volatile feedstock prices and sulky
demand. India has one of the lowest per capita consumptions of petrochemical products in the world. For example, the per capita consumption of polyester in India
lies at 1.4 kg only comparing to 6.6 kg for China and 3.3 kg for the whole world. Similarly, the per capita consumption of polymers is 4 kg in India, whereas the per
capita consumption is around 20 kg for the whole world.

The Growth

The petrochemical industry in India came into existence during 1970s. The 1980s and 1990s saw some rapid growths for Indian petrochemical industry. The
biggest reason for this growth was the high demand for petrochemicals in India, which grew at an annual rate of 13 to 14% since late 90s. It also called for rapid
expansion of capacity. The BMI forecast of average annual growth in India over 2007-2011 is 14 to 16%. However, the industry suffered setbacks during 2008 due
to surge in the price of crude oil. It will be tough for Indian petrochemical industry to plug the deficit of 5mn TPA of ethylene and 4mn TPA of polymer by 2012
(according to the predictions of the government).

The Present Scenario Presently India has three gas-based and three naphtha-based cracker complexes with a combined annual capacity of 2.9 MMT of ethylene.
Besides this, there are also 4 aromatic complexes with a capacity of 2.9 MMT of Xylenes.

The production of 5.06 MMT polymers during FY09 accounted for around 62% of the total production of key petrochemicals. It also achieved 88.5% capacity
utilization. The industry also produced 2.52 MMT of synthetic fibres during FY09 with a 73% of capacity utilization.

Key Segments

Petrochemical industry is constituted of the following key segments:

• Polymers:

The demand for polymers saw a growth of 13.4% during 2007, comparing to a demand growth of 5.6% in 2006. According to the prediction of Chemicals
and Petrochemicals Manufacturers' Association (CPMA), the demand growth for polymer would further be augmented to over 15% in the coming year.

• Polyester Intermediates: The combined production of 5 fibre intermediates (CAN, DMT, Caprolactum, MEG and PTA was 3,417 KT during
2007. Among those, PTA and MEG accounted for 69% and 27% respectively, while the rest were DMT, Caprolactum and CAN.

• Aromatics (Paraxylene): The demand for Paraxylene (PX) saw a growth of 18% during 2007. According to the prediction of CPMA, it is
expected to grow at the same rate in the coming year as well.

• Benzene, Toluene, MX and OX: The demands for Toluene and OX saw a contraction rate of 4% and 10% respectively during 2007. However,
Benzene and MX saw a positive growth though.

Top Petrochemical Companies in India

Though the Indian petrochemical industry is highly dominated by only a few players, however, there are a number of petrochemical companies in India, doing their
share of business. Some of the top companies can be listed as below:

• Reliance Industries Ltd.

• Haldia Petrochemicals Ltd.

• Indian Oil Corporation

• Gas Authority of India Limited

• National Organic Chemical Industry Ltd.

• Bongaigaon Refinery and Petrochemicals Ltd.

• Manali Petrochemical Limited

• I G Petrochemicals Limited

• The Andhra Petrochemicals Limited

• Tamilnadu Petroproducts Limited

n today's jet fast life the Benefits of Petrochemical Products does not need to be mentioned. The Benefits of Petrochemical Products are profound in our
daily life and without it this world would come to a stand still. InIndia the Department of Chemicals & Petrochemicals, GOI are the concerned highest authority of
theIndian Petrochemical Industry and Environment related issues. TheIndian Petrochemical Industry and Environment related issues are well addressed to suit the
needs of the country. TheIndian Petrochemical Industry is at par with world standard. Thus,India share a good portion of Petrochemical business in world market.
Asian countries, African countries and even Arab world buysIndian Petrochemical products. The demand forIndian Petrochemical products is high mainly because
of its quality and competitive pricing.India's low cost and high end Petrochemical products manufacturing expertise coupled with developing world class
infrastructure is the main leveraging factor for the rise of this industry.India offers Petrochemicals at a substantial discount than its western counterparts while
delivering the same grade of output.

TheIndian Petrochemical products are -

• Fiber

• Cotton

• Cellulosics

• Synthetics

• Acrylics

• Polyamides
 • Polyester

• Wool

• Elastomers

• Polymers

• Surfactants

Uses and final products of Petrochemicals are -

• Paints

• Alkyd Resins

• Industrial De-greasers

• Odorless Thinners

• Inks

• Construction Chemicals

• Dry Cleaning

• Cleaning chemicals

• Maintenance Chemicals

• Insecticides

• Insecticides Aerosols

• Agricultural pesticides

• Paints

• Thinners

• Charcoal Lighters

• Oil drilling

The advantages of manufacturing high class Petrochemical Products inIndia are -

• Friendly Government ofIndia policies

• Low cost labor

• Low and world class infrastructure

• Strong technical education

• Large number of science and engineering graduates

• Quality output

• Highly skilled workforce

• Usage of innovative process

• Good client relationships

• Huge scope for innovation

• Expansion of existing relationships

• Huge demand in overseas markets

• Availability of more technical work force

• Increased number and quality of training facilities

Strengths ofIndian Petrochemical industry -

• Large and very fast growingIndian petrochemical market

• Huge trained talent pool

• Competitive labor cost

Weaknesses ofIndian Petrochemical industry -

• Insufficient basic infrastructure for the petrochemical industry

• High feedstock cost in comparison to Middle East countries

• Prevalence and use of old technology

 • Synthetic fiber industry is unorganized and operates in small clusters

Opportunities inIndian Petrochemical industry -

• Huge demand for polymer and synthetic fiber

• Great opportunity for product development exists

• Low consumption of polymer in comparison to global consumption rate

Threats toIndian Petrochemical industry -

• Stiff competition from other regional players like, china and the Middle East countries

• Stiff rational pricing pressures

• Environmental hazards concerns

• Low market recognition

• Relocation of manufacturing sites to region with abundance of feedstock

Notable points of theIndian Petrochemical industry -

• Represents 2% of world market

• Does business worth USD 30 billion

• Rate of growth of theIndian petrochemical industry is 10%

• Profit incurred is around 14%

• Wide variety of products

• Basic components are petrochemicals, inorganic chemicals and fertilizers

• TheIndian states of Gujarat, Maharashtra, West Bengal and Andhra Pradesh have the largest concentration of chemical and petrochemical units

Multifaceted uses of petrochemical ranges from day to day trivial products to high range products. Petrochemical commodities start ranging as something from
as mundane as plastic carry bags to explosives. If we analyze the role of petrochemicals in the petrochemical industries, we find that the petrochemical industry
relies heavily natural gases or petroleum as their raw materials. Oil is one of the most important petrochemical products since it is the main constituent of
petrochemicals. So, almost every item ranging from a carpet to electrical goods are made up of petrochemicals.

Synthetic (a petrochemical product) has numerous uses - it is done by refining petroleum. This is a man-made petrochemical which often serves as the raw
material for wrinkle-free garments. These fibers can be further finely woven tapestry, carpets, curtains, and many other things. Petrochemical is also used
as fertilizers. Fertilizers like pesticides are used to protect crops from any sort of damage and increase crop production.

Wax, also a by-product of petroleum, is used to make candles and mold various show pieces, polishes, and milk cartons.

Detergent, a petrochemical product is also used in every day life. It has been categorized into 2 types - soapless and the soapy variety. The range of soap less
detergents is generally the liquids and the powders. Detergents have oils, alcohol (a petrochemical product) or petrochemicals as their ingredients.

Food-additives are another major kinds of petrochemical which are known to act as preservatives and increase the tenure of freshness of canned food, so that
the freshness of food can be enjoyed anywhere at any point of time. Petrochemical also stretches itself to the production of Vitamins like the ASA (Acety salicylic
acid).

Sneakers (synthetic shoes) have also got petroleum products as their content. The rubber soles are made keeping in mind that they retain the same flexibility in
all form of weather unlike natural rubber which expands when cooled and contracts when heated.

The non-stick pads made to plaster wounds are also a petrochemical product. Today, the medical industry has improved its standards by leaps and bounds and
petrochemicals have served as a boon to this sector.

Dyes which are very familiar petrochemical products have various colors especially the color of the ink used in the pens.

Plastic bottles are made from petrochemicals too. Polyester is used in the making of most plastic commodities. Besides this, compact discs and cassettes are
made up of polyester or petrochemical oil.

Ethylene (a by product obtained by heating or distilling the oil) is the most essential constituent of petrochemical oil and is used to make garbage bags, camera
films, milk crates, bags etc.

Thus, petrochemicals have enormous uses. The petrochemical products are used in every nook and corner of the world ranging from household applications to the
massive industrial production taking place across the world

The different petrochemical applications in industries are the key factors of the growth in this sector. The future brings more and more potentials for the
petrochemical industry as a supplier of basic materials.

The petrochemical industry inIndia is growing and so is the extent of petrochemical applications in industries. It has become one of the important
manufacturer and exporter of petrochemical intermediary products. These products are used for the manufacturing of a variety of end users products.
Ethylene is one of the major products which is a colorless gas with very little odor. It is used for the manufacturing of ethylene glycol, used in products like styrene
for synthetic rubber, polyethylene plastics, anti-freeze for cars, latex paints, textile fibers like Rayon, Orlon, and Dacron. It is used to make vinyl plastics,
cellophane, and solvents.

Propylene is used for the manufacturing of epoxy glue, rubbing alcohol, acrylics.
Butadiene is used for the manufacturing of synthetic rubber for hoses, plastic pipes, carpet fiber, paper coating, trucks, and car tires.

Benzene is used for the manufacturing styrene which is used as a basic material for polystyrene plastics and also used for making phenol for phenolic resins. In
the liquid form the phenolic resins are used in bondind of plywood. In the solid state it is used for making non-conducting plastics for electronic appliances
assembly. It is also used for making epoxy resins, glues, other adhesives, and paints.

Toluene is primarily used for making explosives, gasoline, additives, and solvents.

Xylene is used for making synthetic fibers and plastics. It is also added to a variety of gasoline to enhance its octane number which is used as a high octane fuel
for cars to boost up power during races.

The synthesized gas is used for making methanol and ammonia. Methanol produced is used to make formaldehyde. It is also used for making silicone rubber for
caulking, plastics, polyester fibers. Ammonia is used to make ammonium nitrate, a common fertilizer used in agriculture.

Technological Improvements through Petrochemicals deserve a special mention since petrochemical industries have contributes hugely to theIndian
economic infrastructure. Companies like Reliance, Nocil, and IPCL are the most illustrious ones in theIndian petrochemical sector.

One of the main thrusts of petrochemical industries has been to improve the technological applications and ensure technological progress in this sector.
Petrochemical industries are high volume and capital intensive industries. The main motive of the petrochemical industries is to create a technological civilization
based on scientific and industrial progress through a blueprint, design, development by means of specialized courses rendering technological and engineered
development. It has been seen that the giant petrochemical industries inIndia like IPCL, Reliance Industries, Nocil, and CIPET have contributed enormously
to technological improvements through petrochemicals. Despite being a late entrant in the petrochemicals industries,Indian technological prowess in this
domain has been able to attain international standards. However, the credit goes to IPCL, Reliance Industries, Nocil, and CIPET for this technological contribution.
Thus, it becomes mandatory to bring forth their technological drafts which have been employed in the petrochemical sector.

The IPCL is known for its multi-tiered, world class technologies, locations, and products. It has worked with various organizations in the agricultural sectors too and
promoted plasticulture (application of plastics in drip-drain, greenhouse, and mulching). The Vadodara complex of IPCL, having 21 plants deals in Petroleum
Resins, Polyvinyl chloride, and Acrylic Esters and is paving ways for its upgradation. The IPCL was successful in attracting the attention of the private sector as
well. After extensive research on technologies, the IPCL used some specialty catalyst and absorbent objects to improve its production procedures. It stressed on
the specialist catalyst in its product mix and that resulted in excellent demonstration of the products from CATAD everywhere

The CIPET (Central Institute of Plastic Engineering and Technology) has contributed a lot in terms of technological development especially in development and
fabrication testing equipment for plastic products. The list of technological developments undertaken by the CIPET for the petrochemical industry is given below:

• All electric two roll mill

• Motorized Notch Cutter

• ESCR Apparatus

• Carbon Black Cin agriculture) .The main aim of this was to boost the use of plastic in pond lining, canal to water seepage controntent Apparatus

• HDT/VSP Apparatus (Microprocessor Controlled)

• Falling Dart Impact Tester for Plastics Pipes

• Burst Strength Tester for Plastics Films

• Melt Flow Index Tester (Microprocessor Controlled)

Reliance Industries which boasts of an amalgamated petrochemical cum refinery complex, is situated in Gujarat's Jamnagar district. Reliance manufactures a
huge range of Polyester, Polymers, Petrochemical, and Fiber Intermediates. Industry experts opine that Reliance Industries all but introduced turbo technology to
the petrochemical sector.

The Nocil (NATIONAL ORGANIC CHEMICAL IND LTD) belongs to the Mafatlat Group Company and was the first petrochemical complex in the country. This
company has 3 divisions: Nocil Petrochemicals, Nocil, and Nocil Rubbers. It has two main branches - Urvija Investments and Ensen Holdings. It uses the latest
technologies in producing butadene, benzene, propylene, and ethylene to upgrade the overall production method. The company is to known incur great profits
owing to the huge amount of cost savings.