PETROCHEMICAL INDUSTRY

An Overview

PETROCHEMICALS
Petrochemicals are chemicals which are derived from petroleum products and natural gas. The basic feedstock for manufacturing petrochemicals are: Naphtha Liquefied Natural Gas (LNG) The petrochemicals industry includes three stages: Manufacturing of base chemicals Conversion to intermediate chemicals Petrochemical end products

PRIMARY PETROCHEMICALS
Naphtha /LNG

Olefins

Aromatics

Ethylene

Propylene

Butadiene

Benzene

Toluene

Xylene

INTERMEDIATES AND DERIVATIVES

Ethylene

Ethyl Benzene

Ethylene Oxide

P lyethylene: HDPE, LLDPE and LDPE

Ethylene Dichl ride Vinyl Chl ride M n mer

Styrene

Ethylene lyc ls

PS

PVC

INTERMEDIATES AND DERIVATIVES

Propylene

Polypropylene

Propylene Oxide

Ethylene Acrylonitrile /Propylene Rubbers

INTERMEDIATES AND DERIVATIVES

Xylene

Orthoxylene

Paraxylene

Metaxylene

MARKET SEGMENTATION
MEG 12% PVC 19% HDPE/LLDPE 30% Ethylene oxide 4% Styrene 3% Others 2%

LDPE 30%

GLOBAL SCENARIO
Size Ethylene Capacity Propylene Capacity Major Countries Growth
320

Global Market Size

(USD Bn) 385

2010

2014

DEMAND & SUPPLY

World Ethylene supply/demand - 2010 Production by feedstock Demand by end use Production: 122 MMT
Naphtha Ethane Propane Butane Others 50% 33% 8% 4% 5%

Demand: 122 MMT

PE Ethylene Oxide EDC EBZ Others 61% 14%

Ethylene capacity additions trend: 2005 2010 2005Ethylene 2010 (% 2005 2010 CAGR) capacity (KT)
USA European Union Middle East 34,842 32,706 25,313 26,087 11,803 25,290 33,504 47,630 10,412 11,890 115,874 143,603 -1% 1% 16% 7% 3% 4%

11% 6% 8%

Asia Others World

INDIAN PETROCHEMICAL INDUSTRY

Oligopolistic Industry Fifth largest consumer of polymers in the world. Low per capita consumption Government Initiatives for promoting the sector
FY 05 FY 10 5970 5000

Installed Capacity (000 tons)

Capacity Demand 8120 6530

MAJOR PLAYERS
Reliance Industries Limited (RIL) Gas Authority of India Ltd (GAIL) Haldia Petrochemicals Ltd. (HPL) Others
RIL 70%

Market Share
GAIL 11% HPL 11%

Others 8%

RELIANCE INDUSTRIES LIMITED

Petrochemicals

RIL PETROCHEMICAL
RIL's crackers at Hazira, Nagothane, Dahej and Vadodara are among the world's most integrated petrochemical complexes. It is a leading producer of Linear Alkyl Benzene (LAB), benzene and butadiene in India. It is the world s fifth largest producer of LAB. RIL is the sole producer of acrylonitrile in India with a capacity of 41 KTA. RIL is the only manufacturer of Poly Butadiene Rubber (PBR) in India.

PETROCHEMICALS
Petrochemicals are products derived from petroleum (crude oil) and natural gas. The main feedstock for producing the basic petrochemicals are:
Naphtha Liquefied Natural Gas (LNG)

The cracking of feedstock produces the following:

Olefins Aromatics

POLYMER
Repol Polypropylene (PP) Woven sacks for cement, food-grain, sugar, fertiliser; leno bags for fruits & vegetables, TQ & BOPP films and containers for packaging textiles, processed food, FMCG, office stationery; components for automobile and consumer durables, moulded furniture, luggage, houseware, geo-textiles & fibres for non-woven textiles. Woven sacks, raschel bags for fruits & vegetables, containers for packaging edible oil, processed food, FMCG, lubricants, detergents, chemicals, pesticides, industrial crates & containers, carrier bags, houseware, ropes & twines, pipes for water supply, irrigation, process Industry & telecom; films for packaging milk, edible oil, salt, processed food, roto-moulded containers for storage of water, chemical storage and general purpose tanks, protective films and pipes for agriculture, cable sheathing, lids & caps, master batches. Footwear & hotmelt adhesives

Releen

Polyethylene (HDPE, LLDPE & LDPE)

Ethylene Vinyl Acetate Copolymer (EVA) Reon Polyvinyl Chloride (PVC)

Pipes & fittings; door & window profiles, insulation & sheathing for wire & cables, rigid bottles & containers for packaging applications, footwear, flooring, partitions, roofing, I.V. fluid & blood bags. Irrigation, water supply, drainage, industrial effluents, telecom cable ducts & gas distribution. Tyres, tread rubber, conveyor belts, footwear, sports goods, automotive components, rollers, mechanical goods & dock fenders

Relpipe Cisamer

Poly - Olefin (HDPE & PP) Pipes Poly Butadiene Rubber (PBR)

POLYESTER & FIBRE INTERMEDIATES

Paraxylene (PX) Purified Terephthalic Acid (PTA) Mono Ethylene Glycol (MEG) Raw material for PTA Raw material for polyester Raw material for polyester

Recron Staple Fibre Filament Apparel, home textile, industrial, sewing thread, automotive Stretch, Cotluk, Dyefast, Superblack, Yarn upholstery, carpets, canvas, luggage, spunlace & non-woven Superdye, Kooltex, Fibrefill, Duratarp, Texturised Yarn fabrics, tarpaulin, tents & awnings, crepe and rolled bandages Safeband Twisted / Dyed Yarn Recron 3S Secondary Construction industry (concrete/mortar), cement (sheet & pipe), Reinforcement Produts paper industry (conventional & speciality), battery industry, wetlaid industry (wall papers, filtration, wipes & hygiene products) Polyethylene Terephthalate (PET) Packaged-water, beverages, confectionary, pharmaceutical, agrochemical and food products

Relpet

Chemicals Linear Alkyl Benzene (LAB)

Relab

Detergents

RILS PERFORMANCE: POLYESTER

Fibre Intermediates Industry demand growth (Volume in KT) PX PTA MEG Total FY-11 2,009 3,647 1,650 7,306 Polyester industry demand growth (Volume in FY-10 KT) FY-11 FY-10 % change PFY PSF PET Total 2,134 862 416 3,412 1,891 783 336 3,010 13% 10% 24% 13%

1,964 3,331 1,402 6,697

RIL Fibre Intermediates Production in KT (Volume in KT) PX PTA MEG Total FY-11 1,840 2,033 675 4,548 FY-10 1,875 2,049 695 4,619 (Volume in KT) PFY PSF PET Total

RIL Polyester production FY-11 742 615 353 1,710 FY-10 % change 724 597 345 1,666 2% 3% 2% 3%

POY MARGINS
120.00 100.00 80.00 60.00 40.00 20.00 0.00 POY PTA MEG

 Polystyrene:

Disposable

cutlery,

plastic

models,

CD

&

DVD

cases,smokedetector housings. Products made from foamed polystyrene are nearlyubiquitous, for example packing materials, insulation, and foam drinkcups. Poly vinyl chloride: pneumatic tires, shoe heels and soles, gaskets andeven chewing gum,Clothing,Electric wires,Pipes, Portable electronicaccessories. olyurethanes: foaminsulation used in high resiliency flexible foam seating, rigid panels, microcellular foams seals and

gaskets, durableelastomeric wheels and tires, automotive suspension bushings, adhesives, electricalpotting surface compounds, coatings high performance Spandex

andsealants,

fibers, seals, gaskets, carpet underlay, and hard plasticparts (such as for electronic instruments). MTBE is used in boosting octane number and reducing the emissions.