According to ChemAnalyst report, “India LLDPE Market: Plant Capacity, Production, Operating Efficiency, Technology, Process, Demand & Supply, Grade, End Use, Application, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, India Linear Low-Density Polyethylene (LLDPE) market is projected to grow at a CAGR of around 7.1% during the forecast period. Rising consumer preference for flexible packaging films in packaged food and beverages backed by strong demand for rotational molding grade which supports fabrication of products which seem impossible to be produced by other processes is expected to drive LLDPE demand in India during the forecast period.
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LLDPE sector leads the India Polyethylene market and is likely to register the sharpest growth due better characteristics than other polyethylenes. Demand for LLDPE holds diverse applications in milk and edible oil packaging, lamination films, extrusion coating, cast films, stretch films, specialty films, rotomoulding and injection moulding. Excellent barrier properties, better affordability, superior toughness and enhanced puncture resistance ensure that LLDPE remains the most preferred choice in the packaged food industry. Packaging sector accounts for more than 60% of the country’s total LLDPE demand, backed by growing demand for convenient and safe packaging of food and pharmaceutical products. LLDPE films also popularly used in carrier bags, pouches, and agricultural covering films and other applications. Rising penetration of new entrepreneurs in the Indian packaging industry and government incentives to promote small and medium enterprises will contribute to the overall growth of Indian LLDPE industry in the forecast period. Moreover, Prime Minister Narendra Modi’s vision to make India a global manufacturing hub will augment the healthy growth of India’s LLDPE market.
Key LLDPE players anticipate rotational molding as one of the fastest growing plastics processing methods in the next five years. The robust growth can be expected because rotational molding can be used for manufacturing materials of versatile shapes and sizes that could not be achieved using traditional vinyl processes. LLDPE roto molding grades serving vast applications in automotive parts, toys, insulated containers, tanks etc. is expected to drive the overall LLDPE market in the forecast period.
Demand of polymer products remained strongly affected throughout Q4FY20, due to indefinite halt in industrial activities caused due to the sudden outbreak of novel coronavirus. Hit by the demand downturn, LLDPE film CFR prices in India dropped by $10 per tonne with strong fluctuations between $790-830/tonne in Q4FY20 due to COVID-19 related uncertainties. Hit by the pandemic woes, local LLDPE players had to balance with swelling inventories and recorded significant slump in annual polyethylene sales. Reduced offtake by the downstream end-users forced several state controlled LLDPE refiners such as OPAL and RIL to curtail operating rates at their petrochemical production units by more than 30%. However, with ease in lockdown restrictions in May, the companies scaled up their production activities up to 70% to recover the potential losses. Despite unprecedented downfall in the Indian economy due to underperformance of the industrial sector, the demand for polymers is likely to sustain in this fiscal and gradually rise in the years to come as India has geared up to become a self-reliant country with constant support of the Indian government. Prices of LLDPE will reach to their pre pandemic levels by Q2 FY21 and will erase out the incurred losses with strengthening demand.
According to ChemAnalyst report, “India Low-Density Polyethylene (LDPE) Market: Plant Capacity, Production, Operating Efficiency, Process, Demand & Supply, Application, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, some of the major players operating in India LLDPE market are Reliance Industries Limited, GAIL India Limited, Indian Oil Corporation Limited, Haldia Petrochemicals Limited, ONGC Petro additions Limited and Brahmaputra Cracker and Polymer Limited. RIL leads the domestic LLDPE market with about 23% market share. Globally, the company is the world’s 7th largest producer of LLDPE and is expected to expand its global footprints with hefty investment plans in the coming fiscals. The Dow Chemical Company, ExxonMobil, SABIC, QAPCO etc. are some of leading international players operating in the India LLDPE market. Scheduled capacity expansions and new players venturing into the domestic market are likely to propel the LLDPE market growth in the forecast period. In 2019, India’s HPCL-Mittal Energy Ltd (HMEL) received environmental clearance for adding a polymer unit at its Guru Gobind Singh refinery and Petrochemical complex. The proposed project is expected to complete by April 2021 and would house two LLDPE/HDPE swing plants of capacity 400 KTPA each, a 500 KTPA Polypropylene plant, a 450 KTPA HDPE unit and a 55 KTPA butane-1 line.
“India is the second largest polymer consumer in Asia after China. Polymer demand in India is strongly driven by increasing disposable income and exceptional growth in its e-commerce sector. Almost 80% of the global LLDPE is used in films for applications such as food and non-food packaging, shrink & stretch film, and non-packaging uses. India’s huge volumes of produced LLDPE goes into single-use packaging. Food packaging is one of the major growing areas of the industry as people become more adaptable to packaged and frozen foods. Sectoral growth is also promoted as people are increasingly shifting their focus from packing in rigid containers to high quality flexible packages. Although COVID-19 rendered a deep injury to the Indian polymer industry, abundant low-cost feedstocks will create lucrative opportunities for the Indian firms. Moreover, domestic players aggressively expanding their capacities and investing in world class LDPE processing technologies would further enhance the penetration of the local players in the international markets. Looking at the market uncertainties, long-term supply-chain analysis and procurement strategies will have a decisive impact on the growth trajectory of the country’s LLDPE market in the years to come.“said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.
Source : ChemAnalyst