10 May 2013 10:25 [Source: ICIS news]
TAIPEI (ICIS)--India is set to become one of the world’s major polymer processing hubs, as demand from the country and southeast Asia is expected to grow rapidly, executives from India-based distribution firm Daga Global Chemicals Ltd (DGCL) said on Friday.
“India and southeast Asia can absorb much of the petrochemical and polymers production coming on from the Middle East. India is the natural choice for processing,” DGCL chairman and managing director Satyen Daga told ICIS on the sidelines of the Asia Petrochemical Industry Conference (APIC) in Taiwan.
Chemical demand has been strong in India in the past years, with growth expected at 10% in 2013, but there has been no corresponding increase in local capacity, Daga said.
Thus it would be advantageous for Middle East producers to ship bulk commodity chemicals and polymers to India for processing, he said.
“The Middle East needs India. It costs only about $20/tonne (€15/tonne) for freight from the Middle East to India,” said Daga.
Petrochemical companies such as Abu Dhabi’s Borouge, Saudi Arabia’s SABIC and Qatar’s state-owned chemical distribution company Muntajat are all in the process of setting up operations in India, he added.
“India and the GCC [Gulf Cooperation Council] countries need to cooperate more, and they will find a way,” said Daga.
India faces major infrastructure challenges that will have to be addressed by the government, noted Kunal Daga, executive assistant to the chairman.
“In the next four to five years, India can consume $1 trillion in infrastructure spending,” said Kunal Daga.
“We need infrastructure spending and project execution. We are short of everything from roads to communications capabilities. Yet India runs despite the government,” said Satyen Daga.
($1 = €0.77)
Additional reporting by John Richardson in Taipei
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