Upload International Conference Day1 Mr.rajeev Mathur, GAIL

8/8/2019 Upload International Conference Day1 Mr.rajeev Mathur, GAIL

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Indian Polymer Business

- Status & Outlook


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In this presentation

GAIL In Petrochemical Business

Domestic Scenario Way Forward


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GAIL In Petrochemical Business

Natural Gas Olefins Polyolefins

HDPE/LLDPE

Processors forEnd Markets


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G-LEX (2 * 100,000 MTPA)

HDPE FROM MITSUI PLANT

G-LENE ll (1* 210,000 MTPA)

LLDPE FROM NOVA CHEMICALS SWING PLANT

G-LENE hd

HDPE FROM NOVA CHEMICALS SWING PLANT

BRANDS

Capacity : 4,10,000 PA


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HDPE :

i) Raffia & Mono Filamentii) Blow Molding (General purpose & HM Blow)

iii) Injection Molding (High & Low MFI)

iv) HD & HM Filmsv) Pipe & Ducts

LLDPE :i) Films (Slip & Non-Slip)

ii) Rotational Molding

iii) Extrusion Coating

PRODUCT SEGMENTS


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Indian Mark et Share-HD/LL

GAIL

20%

RIL41%

HPL

23%

IMPORTS16%

Over 2 Mn TPA market


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ZONAL/BRANCH OFFICE -NETWORK

* CHANDIGARH

NEW DELHI* LUCKNOW

JAIPUR *

* AHMEDABAD

BANGALORE *

* CHENNAI

* KOLKATTA

* BHOPAL

MUMBAI *

* HYDERABAD

*PATA

STOCK POINTS IN 37 LOCATIONS

ZO/BO: 11 LOCATIONS


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Capacity Growth of GAIL

Capacity enhanced by 58% since inception

YEAR D/s Capacity Remarks

1998-99 260 Inception

2005-06 310 DBN of NOVA plant

2006-07 310 Cracker 5th furnace hooked

2007-08 410 HDPE-II commissioned

6thCracker to be implemented in FY 2010-2011


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Petrochemicals Contribution- GAIL Portfolio Capacity Share ~ 23% Market Share (Domestic) ~ 20%

Profit contribution (PBT) ~ 33% of the total GAILs profit in FY 2007-08

Source:- GAIL Annual Reports & Industry Data

2906.05

3429.09

3151.55

3855

1254.23

951.48804.24 711.05

30.2%

27.7%

20.7%

32.5%

0

500

1000

1500

2000

2500

3000

3500

4000

4500

`2004-05 `2005-06 `2006-07 `2007-08

Financial Year

PBT(in

Rs.crores)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

PetchemP

BT

contribution%

GAIL-PBT PC-PBT PBT contribution

PBT increase by 32% in 2007-08 wrt 2006-07

Share in Revenue 14 %


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DOMESTIC SCENARIO


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5

17 18

25

India Asia China World

Year 2007 2010

Global 25 28.9

Asia 17 21.6China 18 24.2

India 5 7.4

PCC Current Per Capita Consumption of allpolymers (Kg)

Per Capita Polymer Consumption

Wide Scope of Polymer Consumption in India


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Petrochemical Map - India

Company/LocationFeedStock LDPE

HDPE-LLDPE

0.1 0.24

RIL (IPCL)/ Gandhar/ Guj Gas - 0.16 -

GAIL / Pata / UP Gas - 0.41 -

Sub Total 0.1 0.81 0.1

RIL (IPCL) /Baroda/Guj Naphtha 0.1 - 0.15

HPC / HaldiaNaphth

a - 0.55 0.3

RIL / Hazira / GujNaphth

a - 0.45 0.4

RIL / Jamnagar / GujNaphth

a - - 1.1

1.0

1.81

0.1

0.2

Gas

Sub Total 1.95

PP

RIL (IPCL) /Nagothane /Mah 0.1

TOTAL 2.05

Capacity of PE and PP is about 2.0 MMTPA each

Reliance is the market leader GAIL and HPL are other major players

Haldia

Nagothane

Hazira

BarodaGandhar

Pata

PetrochemicalComplex

Jamnagar

(MMTPA)


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HD/LLD Industry Sales & Growth Trend

1140

1273

1379

1790

1592

8.30%9%

11.70%

15.40%

12.40%

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2003-05 2004-05 2005-06 2006-07 2007-08

Financial Years

Volumes(inKTA)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Domestic Sales `% Growth

Source: Industry Data

CARG-11%


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GAIL EXPANSION PLAN

YEAR Polymer

Capacity

(MTA)

Action Status

2008 4,10,000 Existing -

2009-10 5,00,000 6th FurnaceInstallation

In Progress

2012-13 7,80,000 BCPL (A 70% JV of

GAIL) (2,80,000MTA)

D/S Technology -

Innovene/ LummusSelected

2013-14 10,80,000 Pata Expansion from

5 Lac MTA to 8 Lac

MTA

DFR Study under

process.

Petrochemical F t re Addition India


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Petrochemical Future Addition - India

GAIL, Pata

HPL, Haldia

HMEL, BathindaBCPL, Assam

PE PPExpectedTimeline

HPL, Haldia 0.2 0.15 2009-10

GAIL, PATA 0.1 - 2010-11

IOCL, Panipat 0.65 0.60 2009-10

HMEL,BATHINDA

- 0.35 2011-12

OPAL, DAHEJ 1.02 0.34 2012-13

2012-13

GAIL, PATA 0.30 - 2013-14

BCPL, Assam 0.22 0.06

2.49Total 0.9

(MMTPA)

About 2.5 MMTPA of PE capacity and about 1 MMTPA of PP capacityare being added within 2013.Domestic /DTA capacity augment ~1.7MMTPA

OPAL,Dahej

SEZ status for Export focus


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Market Status

Indian Polymer market is over 5 MMTPA

(PE-2 ; PP 2; PVC-1.2; LD-0.2, PS-0.5)

75% of the processing in SSI

Over 3.3 Mn employed in ~ 22,000 units

Processing m/cs > 55,000 nos.

Average unit output 200-225 TPA ( th ofChina & 1/8th of USA)


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Challenges Per unit processing capacity- LOW

Avg. capacity utilization < 70%

High use of re-processed plastic (~30%) for

Bottom of the Pyramid market.

Cost competitiveness LOW (Low Productivity)

Producer Margins to be tight.

Policy embargos due to poor waste management

Opportunity


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Opportunity Indias growth is largely Internal consumption driven

( Indian trade share at 1 to 1.4 % of the global trade).

Recession proof market is 60% - rural & agri-based

population. Agri-GDP growth AAGR @ 4.5%, segmentconsumption to be stable. (30% PE in Agri directly)

End products (packaging) largely for essential and non-conspicuous consumption, ( barring PP in auto segment)

High scope of increase of irrigable cropland ( only 32%currently). Subsidy outlay about 40-45% of the farmsubsidy.

Way Forward


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Way Forward

Industry to collaborate with state governments

for waste disposal mechanism.

Processor capacity scale-up with increased productivity

to improve domestic consumption as well as costcompetitiveness.

Increased consumption of plastics for agri-productivity

& agri-product storage to provide growth impetus.

Base case of 5% AAGR. GDP growth in next 5 years toincrease polymer consumption to ~ 7.5 MMTPA.


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THANK YOU!

Brahmaputra Cracker Polymers Ltd


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Brahmaputra Cracker Polymers Ltd.(BCPL- A 70% JV of GAIL) - Update

Sr.

No.

Product Technology /

Licensor

Capacity

(TPA)

Expt. Date of

Commencemen

t

01 HDPE /

LLDPE

Innovene Gas

Phase /

M/s Ineos, UK

2,20,000

02 PP M/s Lummus

Novolen,

Germany

60,000 2012-13

03 Naphtha/

Gas

Cracker

M/s Lummus 2,80,000 2012-13

2012-13

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