8028325082?profile=original

According to ChemAnalyst report, “India Polypropylene Market: Plant Capacity, Production, Operating Efficiency, Process, Demand & Supply, Grade, Application, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, India Polypropylene (PP) market is anticipated  to grow aggressively at a CAGR of 8.51% during the forecast period due to increased PP consumption as a raw material in the country’s rapidly expanding healthcare sector and growing demand for recyclable Biaxially Oriented Polypropylene (BOPP) films for flexible packaging of food and non-food products driven by the booming FMCG sector.

Browse Complete Report : Polypropylene (PP) Market in India

Flexible Packaging and Injection Molding grade account for the largest market share in the India Polypropylene market, driven by increased packaged food penetration and strong boost in the e-commerce and organized retail sectors in India. Rising demand for Polypropylene for manufacturing highly durable and cost-effective BOPP films for flexible packaging applications will provide a substantial spur to the country’s Polypropylene market demand in the forecast period. Due to its desirable characteristics, domestic manufacturers are continuously researching on Cast film Polypropylene to increase shelf-life of meat and other food products containing high fatty acids. Moreover, improved characteristics such as high resistance to cleaning agents, disinfectants, and various other chemicals have made Polypropylene a desirable choice for medical applications. Use of Polypropylene in the downstream medical sector for manufacturing syringes, surgical trays, inhalers, and several instrument parts has tremendously boosted the PP market growth in India.

Chemical-Pricing: https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False

Also, Polypropylene has emerged as a material of choice for manufacturing Personal Protective Equipment (PPE) kits which have been strongly recommended by the World Health Organization for medical personnel who are fighting on the frontlines in the country’s battle against COVID-19. Moreover, during the pandemic, there has been a significant shift in the demand from the Raffia grade to Fibre-grade PP, a key raw material for manufacturing surgical masks. Rising health consciousness among people of India backed by the government’s huge investments towards making India self-reliant for manufacturing PPE kits will significantly drive India’s Polypropylene market in the forecast period. 

Currently, India’s Polypropylene demand is being met through both domestic production as well as imports. However, outbreak of novel coronavirus rendered a sharp decline in the PP imported volumes which remained hard hit due to trade disruptions as several counties announced force majeure to contain the spread of the pandemic. Indefinite halt in industrial activities eventually leading to demand downturn hard hit the PP prices which remained under pressure in the final quarter of FY20. Most domestic PP producers tried operating their plants at curtailed rates or temporarily shut their units to deal with swelling inventories. Indian producers like OPAL and Reliance which targeted the export market, remained anxious as logistics remained disturbed under lockdown restrictions. Polypropylene CFR prices in India witnessed a decline by $20 per tonne and hovered between $930-960 per tonne in India in Q4FY20 amid COVID-19 related uncertainties. However, with downstream sectors resuming production activities and ease in lockdown restrictions, prices are likely to show an uptrend by the Q2FY21.

According to ChemAnalyst report, “India Polypropylene Market: Plant Capacity, Production, Operating Efficiency, Process, Demand & Supply, Grade, Application, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, major players operating in India polypropylene market are Reliance Industries Limited, Indian Oil Corporation Limited, HPCL-Mittal Energy Limited, Haldia Petrochemicals Limited, ONGC Petro Additions Limited, Mangalore Refinery and Petrochemicals Limited, Brahmaputra Cracker and Polymers Limited. Exxon Mobil Corporation, LyondellBasell Industries and Sinopec are some of the global players operating in the India PP Industry. Huge investments and capacity expansion plans by the key players like RIL, IOCL and OPAL are likely to give a strong boost to the domestic Polypropylene sector in the next five years. One such undergoing project is HPCL Rajasthan Refinery Ltd’s (HRRL’s) 181,000-bpd integrated refinery and petrochemical complex, which is under construction in the Barmer District, Rajasthan. The refinery will house two 490 KTPA Polypropylene units each, thereby contributing significant volumes to the domestic PP industry. Moreover, latest technological investments in the country’s Polypropylene sector such as adoption of LyondellBasell’s fifth generation Spheripol polypropylene process technology by HPCL-Mittal Energy Limited (HMEL) and advanced Novolen technology contract awarded to McDermott International by Chennai Petrochemical Ltd. were some of the highlights in FY20.

“A number of green field expansions in the packaging sector followed by strong boost in the FMCG sector will render a strong impetus to India Polypropylene market in the forecast period. After experiencing major blows due to COVID-19 in the Q4 FY20, players are eyeing on recovery of Polypropylene downstream sectors. Although PP demand from the packaging sector remained quite satisfactory even during the cold waves of coronavirus, the unprecedented slump in the automotive industry weighed over the industry’s annual performance in FY20. However, with recovery in demand and collapse in feedstock prices, players are anticipating enhanced EBITDA margins and efficient capacity utilization in the current fiscal. Packaging sector will offer a vast potential to the India Polypropylene industry, considering rising low packaged food penetration in India and increase in personal disposable income. Moreover, increased investments by the organized retail industries and transition from rigid to flexible packaging will further improve the demand outlook. In addition, domestic manufacturers are also anticipating skyrocketing demand for non-woven Polypropylene, which finds primary usage in face masks after the pandemic.  Global demand for polypropylene is forecasted to grow to 120 MMT by 2030. Hence, Indian players are planning to expand their reach to the international market along with ensuring a strong foothold in the domestic industry. These factors, further assisted by increased penetration of Polypropylene in industrial value chains are likely to push PP market to unmatched levels in the next five years.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.

Source : ChemAnalyst

Votes: 0
E-mail me when people leave their comments –

ChemAnalyst

You need to be a member of Global Risk Community to add comments!

Join Global Risk Community

    About Us

    The GlobalRisk Community is a thriving community of risk managers and associated service providers. Our purpose is to foster business, networking and educational explorations among members. Our goal is to be the worlds premier Risk forum and contribute to better understanding of the complex world of risk.

    Business Partners

    For companies wanting to create a greater visibility for their products and services among their prospects in the Risk market: Send your business partnership request by filling in the form here!

lead