For the complete report, get in touch with us at : info@netscribes.com Indian Petrochemical industry is one of the fastest growing sectors in the world. Low operating capacities in Indian petrochemical concerns bring with it the opportunity for future facility utilization. Polymer market is dependent on growth in related sectors. Low per capita consumption of polymer offers opportunities for domestic manufacturers to meet the rising domestic demand for polymers. The report begins with an overview of the petrochemical industry in India providing the market size and growth as well as information regarding the increase in refining capacity in India. This is followed by a primary segmentation of the industry. An overview of polymer industry provides an introduction to the sector and covers the market size and growth along with share of polymer in India. This is followed by an analysis of the value chain as well as a description of the key processes involved in the methodology for developing polymeric products. The section also renders information about the distribution model prevalent in the sector along with an EXIM trend over a period of five years. Porter’s Five Forces analysis concludes this section. The next section provides highlights regarding the major polymers in the Indian Market. The sector can be categorized into four major sub-divisions of polymers. It includes information regarding individual market sizes and growth. Also provided are the primary properties and uses of these polymers. An analysis of the drivers explains the factors for growth of the market and includes demand from packaging industry, growth in associated manufacturing sectors, increase in usage of polymer products in agriculture, depreciation of rupee and low per capita consumption of polymer. Due to marketing policies varying across sectors and unique attractive packaging surfacing as a potent determinant for success of products, packaging sector is poised for growth. Growth in packaging sector will translate in to strong demand for the polymer industry. Growth is directly linked with its associated sectors that are prime polymer users. Growth in the Indian economy ushers in the development of sectors such as infrastructure, automobiles and consumer goods. These require polymer in their product development and thus pose as significant drivers for the sector. Agriculture constitutes another sector that has emerged as a potential end user for polymers. Be it infrastructural projects such as irrigation or even construction activities, polymers find its applications in such areas. Depreciation of rupee has added to major woes in the cost of imports for the sector. India has witnessed increased domestic demand and with imports slowing down due to increased cost, immense opportunities exists for domestic manufacturers to cater to the rising demand. Finally, India faces low per capita consumption of polymers which poses latent opportunities for the sector. Howe

1. Polymer Market in India
Polymer Market in India
January 2012

2. Executive Summary
 Indian Petrochemical industry is considered to be growing at a1% CAGR over 20‐‐‐‐‐
 India is considered as one of the fastest growing manufacturers of polymers
Market
 Condition 1 has led to increased costs of imports creating opportunities for domestic players to
generate high revenues
generate high revenues
Drivers Challenges
– Demand from packaging industry – Rise in crude oil prices
– Growth in associated manufacturing – Environmental degradation
Drivers & sectors
Challenges – Increase in usage of polymer products in
agriculture
– Depreciation of rupee
– Low per capita consumption of polymers
Low per capita consumption of polymers
 Usage of polymers in the medical sector  Shift towards gas based production units
Trends  Improvised marketing offers for polymer  Growing investments
buyers
Major Players
Competition Company 1 Company 2 Company 3
Company 4 Company 5 Company 6
POLYMER MARKET IN INDIA 2012.PPT 2

3. •Introduction
•Market Overview
•Major Polymers
•Drivers & Challenges
•Government Participation
•Trends
•Competition
•Strategic Recommendations
pp
•Appendix
POLYMER MARKET IN INDIA 2012.PPT 3

4. Polymer industry is expected to see steady growth as
demand continues to rise
Polymer Industry – Overview Market Size and Growth
• India is one of the fastest growing polymer markets INR bn
in the world 20 x1%
T
• It ranks xth in terms of capacity of polymers after S
15 R
only the country 1 and country 2 Q
P
10
• Indian polymer industry is extremely capable of
5
exporting polymers as many petrochemical majors
p gp y yp j
still operate at low capacities 0
20-- 20-- 20-- 20-- 20--
• Per capita consumption of polymer in India is at a2 kg
compared to a3 kg in US and China with a4 kg
• Major forms of polymers are polyethylene,
Major forms of polymers are polyethylene,
Petrochemical – Share of Polymer
polypropylene, polystyrene and polyvinyl chloride
• Polymer finds its usage in a variety of sectors like Segment 1
packaging, agriculture and plastics x3% Segment 2
• Condition 2 aided with increase of crude oil prices
Condition 2 aided with increase of crude oil prices
have affected the polymer industry in India
negatively
x2%
 Condition 3 has led to higher import costs and with rise in
c ude o p ces, o e a
crude oil prices, overall import costs of inputs result in
po t costs o puts esu t
increased polymer prices
Source:
POLYMER MARKET IN INDIA 2012.PPT 4

5. Though rupee depreciation implies reduction in volume,
imports continue to maintain healthy trend
Imports Imports (Value)
• Despite d1 duties imposed by the government,
INR mn
imports continued to garner strong volumes
imports continued to garner strong volumes 200,000 D
x2%
• Has a cenvat duty of b1% with an excise cess of b2% C
150,000
• Imports of polymers have maintained an upward 100,000 A B
trend with polyethylene registering the highest value
p y y g g g 50,000
,
0
20-- 20-- 20-- 20--
Segmentation – Countrywise (2009‐10) Segmentation – Countrywise (2010‐11)
Country 1 Country 1
p1% q1%
Country 2 Country 2
p6% Country 3 Country 3
q2%
p
p2% Country 4 q6% Country 4
Country 5 Country 5
q5% q3%
p5% p3% Country 6 Country 6
q4%
p4%
Source:
POLYMER MARKET IN INDIA 2012.PPT 5

6. Drivers & Challenges – Summary
Drivers
Demand from packaging industry
Demand from packaging industry
Challenges
Growth in associated manufacturing
sectors Rise in crude oil prices
Increase in usage of polymer products
Increase in usage of polymer products
in agriculture Environmental degradation
Depreciation of rupee
Low per capita consumption of
L it ti f
polymer
POLYMER MARKET IN INDIA 2012.PPT 6

7. Trends – Summary
Usage of polymers in medical
Investments
sector
Key
Trends
Shift towards gas based Improvised marketing offers for
production units polymer buyers
POLYMER MARKET IN INDIA 2012.PPT 7

8. Public: Domestic Company – Company 1 (1/3)
Company Information
SAMPLE
Offices and Centres – India
Place 1, Country 1
Corporate Address
Tel No. +123456
Fax No. +123456
Website http://www.abc.com/index.html City
Year of Incorporation 19‐‐
Ticker Symbol ‐‐‐‐
Stock Exchange
Products and Services
Products and Services
Head Office
Category Products/Services
Category 1 Product 1 Key People
Name
N Designation
D i ti
Category 2 Product 2
Person 1 D1
Category 3 Product 3
Person 2 D2
Person 3 D3
Person 4 D4
Source:
POLYMER MARKET IN INDIA 2012.PPT 8

9. Public: Domestic Company – Company 1 (2/3)
Financial Snapshot
i i lS h Key Ratios
K i
y‐o‐y change
Particulars 2011 2010 2009 2008
Total Income Profit (2011‐10)
Total Income
INR mn INR mn Profitability Ratios
Profit / Loss
60 P 1.5 Operating Margin a a1 a2 a3 a4
1.0 Net Margin b b1 b2 b3 b4
40 Profit Before Tax Margin c c1 c2 c3 c4
Q 0.5
20 R S Return on Equity d d1 d2 d3 d4
0.0
Return on Capital Employed e e1 e2 e3 e4
0 ‐0.5 Return on Working Capital f f1 f2 f3 f4
2008 2009 2010 2011 Return on Assets g g1 g2 g3 g4
Financial Summary Return on Fixed Assets h h1 h2 h3 h4
Cost Ratios
• The company incurred a net profit of INR ‐ mn both in FY 2011 and Operating costs (% of Sales) i i1 i2 i3 i4
FY 2010 Administration costs (% of
j j1 j2 j3 j4
• The company reported total Income of INR ‐ mn in FY 2011, Sales)
registering an increase/decrease of x1 % over FY 2010
registering an increase/decrease of x1 % over FY 2010 Interest costs (% of Sales)
Interest costs (% of Sales) k k1 k2 k3 k4
Liquidity Ratios
• The company earned an operating margin of x2 % in FY 2011 an
Current Ratio l l1 l2 l3 l4
increase of ‐‐ percentage points over FY 2010
Cash Ratio m m1 m2 m3 m4
• The company reported debt to equity ratio of ‐ in FY 2011, an Leverage Ratios
increase of x3 % over FY 2010 Debt to Equity Ratio n n1 n2 n3 n4
Key Financial Performance Indicators Debt to Capital Ratio o o1 o2 o3 o4
Interest Coverage Ratio p p1 p2 p3 p4
Indicators Value (dd/mm/yyyy) Efficiency Ratios
Market Capitalization (INR) A1 Fixed Asset Turnover q q1 q2 q3 q4
Total Enterprise Value (INR) A2 Asset Turnover r r1 r2 r3 r4
EPS (INR)
EPS (INR) Current Asset Turnover
Current Asset Turnover s s1 s2 s3 s4
A3
Working Capital Turnover t t1 t2 t3 t4
PE Ratio (Absolute) A4
Capital Employed Turnover u u1 u2 u3 u4
Source: Improved Decline
POLYMER MARKET IN INDIA 2012.PPT 9

10. Public: Domestic Company – Company 1 (3/3)
Key Business Segments Key Geographic Segments
100%
100%
80%
60%
100% 100%
50% 40%
20%
0% 0%
2011 2011
Key Recent Developments
Description News
• India’s largest toll manufacturer of engineering thermoplastics having an installed
Overview
production capacity of ‐‐ MTPA with a current production capacity of ‐‐ MTPA
• Product range includes p1 p2 p3 and others with PP grades consisting of unfilled PP
Product range includes p1, p2, p3 and others with PP grades consisting of unfilled PP
Products available in all colours, ‐‐ PP with filler range from A% to B%, ‐‐ filled with filler range from
C% to D%, ‐‐ filled with filler range from E% to F% and ‐‐ filled with FR
• Certain products are manufactured according to customers’ specifications like in the case
Miscellaneous
of both treated and untreated p4 which are sometimes made of polyester, PP or PE
of both treated and untreated p4 which are sometimes made of polyester PP or PE
Source:
POLYMER MARKET IN INDIA 2012.PPT 10

11. Thank you for the attention
The Polymer Market ‐ India report is part of Manufacturing Industry Series.
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POLYMER MARKET IN INDIA 2012.PPT 11