India is set to become a global petrochemical hub due to rising domestic investments and steady consumption that will help reduce imports. With India ranking sixth globally in chemical sales and its demand for petrochemical products projected to grow at a CAGR of 8% over the next 15 years, the country's petrochemical sector is valued at around USD 180 billion (as of 2023), ranking sixth globally. Factors such as India's sustained economic growth, supported by strong macro fundamentals and population growth, are expected to fuel the country's ambitions in petrochemical manufacturing.
The optimism in the sector stems from India's significantly lower per capita consumption compared to developed nations, indicating ample headroom for demand expansion and corresponding investment. India is poised to contribute 10% of the incremental global petrochemical demand growth and is set to experience robust growth from its current 4% share of global capacity. According to the International Energy Agency (IEA), India is projected to drive more than a third of the growth in oil demand by 2030 and nearly half by 2050, surpassing sectors like trucks, aviation, and shipping.
The Company is in the developmental phase of establishing a petrochemical cluster in Mundra, Gujarat. Within this cluster, the Company aims to implement a PVC project with a capacity of 2 million metric tons (MMT) per annum, to be executed in phases. The initial phase, with a capacity of 1 MMT per annum, is slated for commissioning by December 2026.
