Indian petrochemicals sector today
24 October 2001
General highlights
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The petrochemical industry is a capital-intensive and high-volumes industry. The demand elasticity is high in petrochemicals.
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The raw material cost is the major expense any petrochemical industry has to endure. The raw material cost generally accounts for 50 per cent of the selling price.
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Consumption in SE Asian countries (Korea, Indonesia and Taiwan) has been severely affected after the global economic slowdown.
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In a country like India, where the middle-class segment is growing at a rapid space, demand is expected to grow at a high rate.
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There are only three major players: Reliance Industries, Nocil and IPCL. All the three companies have fully-integrated plants.