India’s petrochemical segment will receive a Rs 68,000 crore ($8 billion) investment from Rosneft-backed Nayara Energy. It will produce 1.5 million tonnes of ethane cracker per year at its 20 mtpa refinery at Vedinar in Gujarat. This is going to be the first significant investment by a foreign entity in the Indian petrochemical segment.

An ethane cracker breaks down the hydrocarbon into the key chemical used in making plastics, adhesives, synthetic rubber- and other petrochemicals. Petrochemical companies have been using naphtha as primary firestock. Nayara will be using the latest generation phthalate-free catalyst for the production of the entire range of Polypropylene grades

India’s chemical and petrochemical market size is projected to grow approximately to $300 billion by 2025, from $220 billion in 2024. The demand for petrochemicals is expected to triple and the petrochemical industry in India may reach US$1 trillion by 2040.

According to an ET report, Nayara Energy has already started working on the front-end engineering for the petrochemical project, said a senior executive at the company. The company’s refinery is in western India and is strategically placed close to the port which is the largest point for petrochemical consumption region in the country.

Other companies like Gail India, Indian Oil Corp, Bharat Petroleum Corp Limited, Petronet LNG, IOCL, RIL are also taking part in the petrochemical expansion of the company. Adani Enterprises subsidiary Adani Petrochemicals announced that it has formed a joint venture with Thailand’s Indorama Resources to foray into the refinery, petrochemical and chemical business.

Union Minister Hardeep Singh Puri also highlighted the potential of India’s petrochemical sector. With annual consumption between 25 to 30 million tonnes, India stands as Asia’s third-largest economy, exhibiting a per capita consumption significantly lower than developed countries. This gap presents ample opportunity for demand growth and investment.