An Overview Of The Petrochemical Industry In India
                     An Overview Of The Petrochemical 
Industry In India
Neel Rao
Writes on Reitz India centrifugal fans & 
Reitz India manufacturer of centrifugal fans 
technologies.
The petrochemical industry is among the most important industries, producing both 
final commodities and raw materials for other industries. Several other major 
industries such as healthcare, textiles, agriculture, etc. are depending on the 
petrochemical industry. The chemical products delivered by the petrochemical 
industries constitute about a third of the basic chemical industry. Hydrocarbons are 
extracted from natural gas and crude oil. Then the petrochemicals are derived from 
these hydrocarbons.
The Petrochemical Industry In India
Several of the largest Indian companies such as BPCL, IOCL, RIL, ONGC, and GIL fall 
under the petrochemical industry. Gujarat, Kerala, Mangalore, Karnataka, and 
Maharashtra house some of India’s largest oil refineries. Apart from playing a direct 
role in the economy from the sale of the products, domestic production in the 
petrochemical industry is also important as it would help to reduce India’s 
dependency on foreign countries. Importing energy from the other countries drains 
away a major part of the forex reserves of the country. This affects the exchange 
rates, which implies that if the global oil prices increase, the import of other goods 
becomes costlier too. Moreover, diesel is crucial for goods transportation and a hike 
in diesel prices would affect the prices of even essential items such as food.
The Current Scenario In The Market
In the year 1991, several economic reforms were introduced. By adopting liberalized 
policies, it brought about a major change in the domestic petrochemical industry. 
The current market scenario of the industry is as follows:
• It is expected that by 2022, the industry would reach 7 lakh crores and the CAGR 
would be around 14%.
• Around 30% of the raw materials in the chemical industry comes from the 
petrochemical industry. The value of these, materials is expected to reach about INR 
17.5 lakh crores by this year.
• The petrochemicals industry, in general, sees substantial technological 
development. The petrochemical industry in India holds over 12% of the overall 
petroleum industry as of 2018.
• Polymer production is the major item that is manufactured accounting for a total 
production of 61% of the basic major petrochemicals.
• The petrochemical and polymer demand is expected to grow at 7.5% and 8% on a 
CAGR basis. While the demand for speciality chemicals is expected to grow at 12% 
CAGR.
Why Are Centrifugal Fans Important In Petrochemical Manufacturing?
The equipment used in the petrochemical industry varies as much as the production 
processes do. The chemical substances at primary or derived levels undergo 
extensive treatment and processing. Centrifugal fans are used in processes such as 
producing fertilizers, plastic, alloys, paints, etc. Other uses include the processing of 
exhaust fumes and emissions.
What Are The Expected Market Trends In The Future?
Renewable sources of energy are gaining popularity and many of the energy 
consumers might switch to them in the future. Many of the automobile industries 
are focusing on developing electric vehicles. This would reduce the demand for 
petroleum fuels in the transportation sector, one of the major consumers of petrol 
and diesel. However, the trend of increasing demand for petroleum products in 
various sectors is expected to continue for now. The market for petrochemical 
products still holds prospects.
About REITZINDIA
Reitz India has set a benchmark to deliver high quality fans for heavy duty industries 
which can work at precise operating conditions like high temperatures and pressures. 
Reitz offer idealistic Centrifugal Fan and Centrifugal blower design that can be used in 
all large scale process industries like cement, iron & steel, power plants, fertilizers/ 
chemicals and more.
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