Petrochemicals are the different chemical compounds obtained from crude oil and natural gas. Benzene, butadiene, ethylene, phenol, toluene and many other products are extracted from crude oil and used in dyes, fertilizers, food additives, synthetic compounds, etc. The petrochemical industries are responsible for processing the crude oil and obtaining the above mentioned products. India is a major importer of crude oil and consequently the Indian petrochemical industry plays a significant role in the Indian economy. The growth of the Indian petrochemical industry has been estimated to be as high as 11% and it is expected to increase in the future.
Importance of Petrochemical Industries in India
The petrochemical industry in India has an important role in improving the economic condition of our nation. What is a petrochemical industry? A petrochemical industry is a petroleum-based industry that manufactures chemicals from petroleum. These chemicals and by-products are used to manufacture products of significant roles.
The petrochemical industry in India is considered as the fastest growing industry in India. One of the key reasons behind such growth is that India has a well-developed process industry and India has one of the largest grass root level petroleum refineries. The first petrochemical industry was set up in India in 1966, and a public sector plant was setup in 1973. Studies indicate that the petrochemical industries have been growing ever since. The demand for Indian petrochemical products like wool, acrylics, cotton etc. are in great demand in the world market as they are supplied at discounted rates and possess superior quality.
Today, India is considered to be at a thresh hold of tremendous growth in consumption of petrochemical products due to increased domestic demands. It has been predicted that as the industries that rely on petrochemical products increase in the coming years, the demand for petrochemicals will remain robust. Many experts have indicated that India has huge potential that the country has still not realised and the government and private sectors have to join hands and work together to utilize the potential efficiently.
These are the top 10 petrochemical companies in India.
10. NOCIL Limited
NOCIL Limited started its operations in the year 1976. The company is known for producing rubber chemicals in the country which is its main product. Post Vulcanization Stabilizer, Accelerators and Antioxidants are the examples of some of the products manufactured by this company. The revenue generated by the company is Rs 500-600 crore. Its main office is located in Mumbai.
9. MANALI PETROCHEMICALS LIMITED
Manali Petrochemicals Limited was established in the year 1986 in Chennai. The company operates two manufacturing units with a total capacity of I lakh metric tons of petrochemical products. Propylene Glycol and Polyols are the major chemical compounds manufactured by the company. The company also produces refrigerators, garments, car seats, thermal wear and many other products. The chemicals produced by the company are used in various industries such as Pharmaceuticals.
8. DCW Limited
DCW was founded in the year 1939. The company manufactures a variety of products such as PVC, liquid chlorine, caustic soda, Trichloroethylene, etc. The company has two manufacturing plants based in Gujarat and Tamil Nadu and has its headquarters in Mumbai. The company was initially started as a soda ash factory but it grew to become one of the major petrochemical companies of the nation with revenue of Rs 300-400 crore.
7. Savita Oil Technologies
Savita was established in the year 1961 by the father-son duo of Nandkishore Mehra and Dr Devichand Mehra. The company has its headquarters in Mumbai and runs three manufacturing plants in the country. The company is engaged in manufacturing several products such as petroleum jelly, transformer oils, paraffins, oxidized waxes, etc. The company also manufactures lubricating oil for automobiles which is marketed by the name of Savsol. The company is also involved in the wind energy sector and operates several windmills in India.
Castrol is a name that is recognized easily by the people. This is a very old company which was established in the year 1899 by Charles Wakefield. The company is specially known for manufacturing high quality lubricants for the engines of cars, trucks, buses, bikes, etc. The company also produces engine oils, coolants, antifreezes, transmission fluids and many other products. The company has come a long way from initially manufacturing vacuum oil and is today one of the major names in the industry.
5. Haldia Petrochemicals Limited
This company was established in the year 1985 and has emerged as a major player in the petrochemical industry. The company has its headquarters in Kolkata, the capital of West Bengal and is owned by the state government. The company produces a variety of products such as benzene, polyethylene, motor spirit, cyclopentane, gasoline, etc. The company has a total capacity of 700,000 TPA of ethylene. The total revenue generated is $1 billion to $2 billion.
4. Styrolution ABS India private Limited
Styrolution ABS India private Limited started as a plastic manufacturing company but has currently become one of the leading petrochemicals companies in India. It is the leading producer of polymerized plastic resin and plastic resin in the country. The company is known for producing various quality products. Styrolution ABS India is a part of Styrolution which is a German company manufacturing styrene.
3. Finolex Industries Limited
Finolex Industries Limited was established in the year 1958 and is a clear leader in the production of PVC pipes and PVC Resin. The company operates three manufacturing units located in Pune, Mahsar and Ratnagiri. The company is known for producing quality products and has 15,000 retail outlets all over the nation. The revenue generated by the company amounts to $880 million- $1 billion.
2. Supreme Petrochem Limited
The company was founded in the year 1995 and has a share of over 50% in the polystryrene polymer production in the country. The company has two production plants located in Maharashtra and Tamil Nadu with a total combined capacity of over I lakh tonnes of petrochemical products. The company generated a total revenue of Rs 2600 crore with a net profit of Rs 35 crore in the financial year 2014-15.
1. Reliance Industries Limited
The giant among the petrochemical companies in India was established in the year 1966 and is owned by Mukesh Ambani. The company produces polyesters, elastomers, fabrics and many other chemicals such as benzene, linear alkyl benzene, caustic soda, etc. The Jamnagar refinery owned by the company has a refining capacity of 1,240,000 barrels per day. Reliance is the number one petrochemical company in India by virtue of its premium quality products. The company employs over 20,000 people.
There is a constant competition among the various petrochemical companies in terms of quality and profits along with the value of shares. This is likely to increase in the future with the high growth predicted for this industry.
The growth in the petrochemical as we see today is just the beginning if the government and the private sector join hands to exploit the resources with higher efficiency. The India petrochemical industry can become one among the top petrochemical hubs in the world.