Petrochemical Industry

Topics: Chemical industry, Petrochemical, Petroleum Pages: 16 (4298 words) Published: February 19, 2011
The chemical industry comprises the companies that produce industrial chemicals. It is central to modern world economy, converting raw material (oil, natural gas, air, water, metals, and minerals) into more than 70,000 different products. The chemical industry is a key contributor to the world economy. It is a knowledge-based industry with significant investments in R&D. The industry supplies to virtually all sectors of the economy. In terms of consumption, the chemical industry is its own largest customer and accounts for approximately 33% of the consumption. In most cases, Basic chemicals undergo several processing stages to be converted into downstream chemicals. These in turn are used for industrial applications, agriculture, or directly for consumer markets. Industrial and agriculture uses of chemicals include auxiliary materials such as adhesives, unprocessed plastics, dyes, and fertilizers, while uses within the consumer sector include pharmaceutical, cosmetics, household products, paints, etc. The chemicals industry is diverse and heterogeneous comprising several sectors that are largely unrelated to one another. The key sectors that make up the industry are:


The HIGH LIGHTS of the Indian chemical industry are as follows: * The Indian Chemical Industry forms the backbone of the industrial and agriculture development of India and provides building blocks for downstream industries. * Chemical industry is an important constituent of the Indian economy having approx. US $ 28 billion turnover which is approx. 7% of India’s GDP. * In terms of volume, it is 12th largest in the world, and 3rd largest in Asia. * Within India, it constitutes 15% of manufacturing capacity and 20% of the Excise revenue to the Government of India. Chemical industry has weightage of about 13% in the index of industrial production. * The global chemical industry is valued at about US $ 2.4 trillion. Of which, India’s chemical sector accounts for just 2%. * India’s present share in Global trade is 0.6% i.e. USD 45 Billion and it has been expected to increase the same to 1% i.e. USD 80 Billion by 2011. * Currently, per capita consumption of products of chemical industry in India is about 1/10th of the world average. * Chemical and Pharmaceutical Industry is the most important Foreign Exchange earner with major value additions throughout the value chain. The value is added using Knowledge, Energy and Capital. * The total investment in Indian Chemical Sector is approx. US$ 60 billion generating an employment of 1 million. * The Indian Chemical sector accounts for 13-14% of total exports and 8-9% of total imports of the country. * India’s chemical industries are concentrated in three regions – western, north eastern and southern. Western region has the largest share with about 50% of the total value of shipments and 55% of the total number employees.

Petrochemicals, as the name suggests, are chemicals obtained from the cracking of petroleum feedstock. Petrochemicals are used in many manufacturing fields. The industry is built on small number of basic commodity chemicals, also known as building blocks such as ethylene, propylene, butadiene, benzene, toluene and xylene. Ethylene, propylene and butadiene are commonly referred to as olefins, while benzene, toluene and xylene are known as aromatics. Together, they form the basis of all petrochemical products. Today, petrochemical products permeate the entire spectrum of daily use items and cover almost every sphere of life like clothing, housing, construction, furniture, automobiles, household items, agriculture, horticulture, irrigation, packaging, medical appliances, electronics and electrical etc. The broad product segments of the petrochemical industry include:- BASIC PETROCHEMICALS| These are the basic...
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