upload international conference day1 mr.rajeev mathur, gail
TRANSCRIPT
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Indian Polymer Business
- Status & Outlook
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In this presentation
GAIL In Petrochemical Business
Domestic Scenario Way Forward
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GAIL In Petrochemical Business
Natural Gas Olefins Polyolefins
HDPE/LLDPE
Processors forEnd Markets
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G-LEX (2 * 100,000 MTPA)
HDPE FROM MITSUI PLANT
G-LENE ll (1* 210,000 MTPA)
LLDPE FROM NOVA CHEMICALS SWING PLANT
G-LENE hd
HDPE FROM NOVA CHEMICALS SWING PLANT
BRANDS
Capacity : 4,10,000 PA
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HDPE :
i) Raffia & Mono Filamentii) Blow Molding (General purpose & HM Blow)
iii) Injection Molding (High & Low MFI)
iv) HD & HM Filmsv) Pipe & Ducts
LLDPE :i) Films (Slip & Non-Slip)
ii) Rotational Molding
iii) Extrusion Coating
PRODUCT SEGMENTS
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Indian Mark et Share-HD/LL
GAIL
20%
RIL41%
HPL
23%
IMPORTS16%
Over 2 Mn TPA market
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ZONAL/BRANCH OFFICE -NETWORK
* CHANDIGARH
NEW DELHI* LUCKNOW
JAIPUR *
* AHMEDABAD
BANGALORE *
* CHENNAI
* KOLKATTA
* BHOPAL
MUMBAI *
* HYDERABAD
*PATA
STOCK POINTS IN 37 LOCATIONS
ZO/BO: 11 LOCATIONS
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Capacity Growth of GAIL
Capacity enhanced by 58% since inception
YEAR D/s Capacity Remarks
1998-99 260 Inception
2005-06 310 DBN of NOVA plant
2006-07 310 Cracker 5th furnace hooked
2007-08 410 HDPE-II commissioned
6thCracker to be implemented in FY 2010-2011
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Petrochemicals Contribution- GAIL Portfolio Capacity Share ~ 23% Market Share (Domestic) ~ 20%
Profit contribution (PBT) ~ 33% of the total GAILs profit in FY 2007-08
Source:- GAIL Annual Reports & Industry Data
2906.05
3429.09
3151.55
3855
1254.23
951.48804.24 711.05
30.2%
27.7%
20.7%
32.5%
0
500
1000
1500
2000
2500
3000
3500
4000
4500
`2004-05 `2005-06 `2006-07 `2007-08
Financial Year
PBT(in
Rs.crores)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
PetchemP
BT
contribution%
GAIL-PBT PC-PBT PBT contribution
PBT increase by 32% in 2007-08 wrt 2006-07
Share in Revenue 14 %
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DOMESTIC SCENARIO
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5
17 18
25
India Asia China World
Year 2007 2010
Global 25 28.9
Asia 17 21.6China 18 24.2
India 5 7.4
PCC Current Per Capita Consumption of allpolymers (Kg)
Per Capita Polymer Consumption
Wide Scope of Polymer Consumption in India
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Petrochemical Map - India
Company/LocationFeedStock LDPE
HDPE-LLDPE
0.1 0.24
RIL (IPCL)/ Gandhar/ Guj Gas - 0.16 -
GAIL / Pata / UP Gas - 0.41 -
Sub Total 0.1 0.81 0.1
RIL (IPCL) /Baroda/Guj Naphtha 0.1 - 0.15
HPC / HaldiaNaphth
a - 0.55 0.3
RIL / Hazira / GujNaphth
a - 0.45 0.4
RIL / Jamnagar / GujNaphth
a - - 1.1
1.0
1.81
0.1
0.2
Gas
Sub Total 1.95
PP
RIL (IPCL) /Nagothane /Mah 0.1
TOTAL 2.05
Capacity of PE and PP is about 2.0 MMTPA each
Reliance is the market leader GAIL and HPL are other major players
Haldia
Nagothane
Hazira
BarodaGandhar
Pata
PetrochemicalComplex
Jamnagar
(MMTPA)
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HD/LLD Industry Sales & Growth Trend
1140
1273
1379
1790
1592
8.30%9%
11.70%
15.40%
12.40%
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2003-05 2004-05 2005-06 2006-07 2007-08
Financial Years
Volumes(inKTA)
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Domestic Sales `% Growth
Source: Industry Data
CARG-11%
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GAIL EXPANSION PLAN
YEAR Polymer
Capacity
(MTA)
Action Status
2008 4,10,000 Existing -
2009-10 5,00,000 6th FurnaceInstallation
In Progress
2012-13 7,80,000 BCPL (A 70% JV of
GAIL) (2,80,000MTA)
D/S Technology -
Innovene/ LummusSelected
2013-14 10,80,000 Pata Expansion from
5 Lac MTA to 8 Lac
MTA
DFR Study under
process.
Petrochemical F t re Addition India
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Petrochemical Future Addition - India
GAIL, Pata
HPL, Haldia
HMEL, BathindaBCPL, Assam
PE PPExpectedTimeline
HPL, Haldia 0.2 0.15 2009-10
GAIL, PATA 0.1 - 2010-11
IOCL, Panipat 0.65 0.60 2009-10
HMEL,BATHINDA
- 0.35 2011-12
OPAL, DAHEJ 1.02 0.34 2012-13
2012-13
GAIL, PATA 0.30 - 2013-14
BCPL, Assam 0.22 0.06
2.49Total 0.9
(MMTPA)
About 2.5 MMTPA of PE capacity and about 1 MMTPA of PP capacityare being added within 2013.Domestic /DTA capacity augment ~1.7MMTPA
OPAL,Dahej
SEZ status for Export focus
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Market Status
Indian Polymer market is over 5 MMTPA
(PE-2 ; PP 2; PVC-1.2; LD-0.2, PS-0.5)
75% of the processing in SSI
Over 3.3 Mn employed in ~ 22,000 units
Processing m/cs > 55,000 nos.
Average unit output 200-225 TPA ( th ofChina & 1/8th of USA)
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Challenges Per unit processing capacity- LOW
Avg. capacity utilization < 70%
High use of re-processed plastic (~30%) for
Bottom of the Pyramid market.
Cost competitiveness LOW (Low Productivity)
Producer Margins to be tight.
Policy embargos due to poor waste management
Opportunity
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Opportunity Indias growth is largely Internal consumption driven
( Indian trade share at 1 to 1.4 % of the global trade).
Recession proof market is 60% - rural & agri-based
population. Agri-GDP growth AAGR @ 4.5%, segmentconsumption to be stable. (30% PE in Agri directly)
End products (packaging) largely for essential and non-conspicuous consumption, ( barring PP in auto segment)
High scope of increase of irrigable cropland ( only 32%currently). Subsidy outlay about 40-45% of the farmsubsidy.
Way Forward
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Way Forward
Industry to collaborate with state governments
for waste disposal mechanism.
Processor capacity scale-up with increased productivity
to improve domestic consumption as well as costcompetitiveness.
Increased consumption of plastics for agri-productivity
& agri-product storage to provide growth impetus.
Base case of 5% AAGR. GDP growth in next 5 years toincrease polymer consumption to ~ 7.5 MMTPA.
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THANK YOU!
Brahmaputra Cracker Polymers Ltd
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Brahmaputra Cracker Polymers Ltd.(BCPL- A 70% JV of GAIL) - Update
Sr.
No.
Product Technology /
Licensor
Capacity
(TPA)
Expt. Date of
Commencemen
t
01 HDPE /
LLDPE
Innovene Gas
Phase /
M/s Ineos, UK
2,20,000
02 PP M/s Lummus
Novolen,
Germany
60,000 2012-13
03 Naphtha/
Gas
Cracker
M/s Lummus 2,80,000 2012-13
2012-13