Mr. Siddhartha Mitra. Executive Director (Petrochemicals) Business Development Indian Oil Corporation Ltd. New Delhi

Transcription

1 Mr. Siddhartha Mitra Executive Director (Petrochemicals) Business Development Indian Oil Corporation Ltd. New Delhi Currently heading the Petrochemical group of Indian Oil, Mr. Mitra, has been with Indian Oil for more than three decades now and has rich experience in Process & Refinery Operations. A Chemical Engineer from Jadavpur University, Calcutta and Post Graduate in Polymer Engineering, Mr. Mitra has been associated with the Business Development group for the past 18 years now and is one of the chief architects in spreading the vast business of Indian Oil in to Petrochemicals. His responsibilities include Conceptualization of new projects, Feasibility / Detailed feasibility study for prioritized projects, Technology selection, M&A opportunities in brownfield projects and Marketing of petrochemical products.

2 Building on Strengths - Advantage IndianOil Petrochemical Conclave Hotel Leela Kempinski, Gurgaon March 2013

3 Agenda About IndianOil IndianOil s Vision for Petrochemicals IndianOil in Petrochemicals Business Scenario Future Plans Summary & Conclusion 1

4 Agenda About IndianOil IndianOil s Vision for Petrochemicals IndianOil in Petrochemicals Business Scenario Future Plans Summary & Conclusion 2

5 IndianOil at a Glance Employees Group Companies 21 Companies Net Worth Net Sales Rs 4,09,957 Cr US$ Bn Net Profit Rs 3,955 Cr US$ 825 Mn 34,233 Total Assets Rs 99,183 Cr US$ Bn Rs 57,877 Cr US $ Bn» India s largest commercial enterprise» Highest-ranked Indian Company in Global Fortune 500 ranking : 83 rd Rank 3

6 Vision Visionary Progress Strategic Vision & Long term Planning behind sound base and strong growth 1999 Vision Formulated 2009 New Shared Vision Formulated A major, diversified, transnational, integrated energy company, with national leadership and a strong environment conscience, playing a national role in oil security & public distribution Navratna status granted in 1997 Reconstituted Board started functioning in 1999 Maharatna status granted in May st Maharatna Board Meeting held in March,

7 Business Space 10 out of 22 refineries in the country 65.7 MMTPA capacity ( 31%) 37,000 Touch Points (52%) 66.8 million LPG customers Over 10,909 Km length 79 MMTPA capacity Lube formulations Technology dev. Patents (215) Catalyst dev. Petchem/nano-tech initiatives Group Refining Marketing Pipelines R&D Operates world scale Naphtha Cracker unit Major player in petrochemicals in India Export to 45 countries Domestic:13 Blocks NELP(11),CBM(2) Over Seas:9 blocks Libya (3), Iran (1), Yemen (2), Nigeria (1), Gabon (1), & Venezuela (1) Co-promoter in M/s PLL LNG at Doorstep CGD Gas infrastructure (Storage / Transportation) Biofuel : Captive plantation Wind : 37.8 MW capacity Nuclear : Equity partnership Solar: Grid-connected 5 MW PV solar power plant, Solarization of Ros (103) Petrochemicals Exploration & Production Gas Renewable Downstream Major foray into. Petrochemicals, Gas, E&P Wind, Solar, Nuclear Power and Bio-fuels 5

8 IndianOil in Every Part in Every Heart Only oil company operating in every part of India North East Himalayas Islands Along, Passighat, Ziro Leh, Kargil, Lahaul Spiti Andaman, Nicobar, Lakshadweep Retail Outlet at Boat house Kisan Seva Kendra outlets for extending rural reach Modern XTRAcare ROs Serving the Nation- Kashmir to Kanyakumari - Kohima to Kutch 6

9 Agenda About IndianOil IndianOil s Vision for Petrochemicals IndianOil in Petrochemicals Business Scenario Future Plans Summary & Conclusion 7

10 Vision Statement: Petrochemicals Business To be a dominant petrochemical player in India with footprints in international markets, consolidation of existing business and diversification into niche, specialty chemicals & elastomer product segments. 8

11 Emergence of National Oil Companies Growing significance of National Oil and Petrochemical companies. 10 years back, they were 11% of global total in petrochemicals. Today they have 22% share Located in resource rich regions or in high demand countries Integrated, access to feedstocks Aligned to the National Vision for development of the country 9

12 Approach: Petrochemical Business Refinery Synergy and Augment Petchem capacity Product Expansion and Consolidation Technology Adoption To achieve economies of scale Pooling of feed stock from refineries Integration with refinery for Capex/ Opex optimization Consolidation in commodity products Exploit potential in niche products Exploit potential in Specialty Products Adoption of the state of the art technologies Guarded Petchem technology collaboration through JV 10

13 Drivers for IndianOil s Petrochemicals Utilization of surplus naphtha and stranded propylene from refineries Utilization of other potential molecules from refineries such as n-paraffins, pet coke etc No specialty chemicals producers in the country. Opportunity for offering full chain of petrochemicals Opportunity for import substitution 11

14 Petrochemicals - Competitiveness Criteria PARAMETER KEY OBJECTIVES Size Capture economies of scale Location Access to low cost feed stocks/ deficit markets Technology Cost advantage/ product differentiation Integration Synergies with adjacent facilities IndianOil is ideally positioned for success in Petrochemicals Market 12

15 Petrochemicals IndianOil s Strengths Best in Class Technology Technology Selected for Each Plant provides unique strengths in product quality & envelope Marketing Strengths # Trained Manpower # Nationwide Presence # User friendly Business Processes Technical Services Backup #Trained TS Engineers posted Nation wide # Immediate Attention to Customer Issues # Onsite Trials and New Grade Development Infrastructure Developed Nationwide Network of web enabled: #Channel Partners #Warehouses #Consignment Stockists Application Development Center #Latest Equipment #Trained, Quality Manpower #Extensive Application Devpt Work IT Enabled Online Business Environment Transparency & Ease of Doing Business Transportation Infrastructure #Location Specific Transportation Contracts # Service Level Agreements for Delivery #Multimodal Transport for Overseas Exports #Robust Supply Chain for Regional Exports #Third party quality control Fully Integrated - Access to feedstocks from IndianOil s own Refineries Front Runner Among PSU s in Petrochemicals Aspirations to be a dominant Player 13

16 Agenda About IndianOil IndianOil s Vision for Petrochemicals IndianOil in Petrochemicals Business Scenario Future Plans Summary & Conclusion 14

17 Products profile Forward Integration: Petrochemicals Already India s second largest petrochemical player Value addition to downstream business through sizeable investment of over Rs 20,000 crore LAB at Gujarat (Rs. 1,112 crore) 120 TMTPA capacity plant commissioned in % capacity of the Indian industry Px/PTA at Panipat (Rs. 4,081 crore) 553 TMTPA PTA capacity plant commissioned in % capacity of the industry Polymer/Glycol (Naphtha Cracker at Panipat) (Rs. 15,508 crore) Commissioned in 2010 Polymer 1250 TMTPA Capacity 19.2% Capacity of the Industry Glycol 325 TMTPA Capacity 25 % Capacity of the Industry Polyolefins Aromatics Surfactant F/s Polyethylene Poly-propylene PTA LAB Glycols Export: LAB to 20 countries, Polymer to 31 countries & Glycols to 9 countries 15 MEG DEG TEG

18 Indian Oil Projects: Technology Excellence LAB at Gujarat Improved product quality due to: - High 2-phenyl alkanes - Lower benzene content - Better color performance Adoption of fixed bed catalyst based Detal Process resulting in higher product yield PX/PTA at Panipat High PX yield due to: - Adoption of upgraded adsorbent /catalyst - Adoption of optimized secondary & tertiary processes Upgraded PTA technology resulting in reduced energy consumption Naphtha Cracker Complex at Panipat Cracker Unit - Increased olefins yield - Reduced specific energy consumption Polymer Units based on solution/slurry processes resulting in: - Lower transition time between grades - Better stability of products - Better stereo regularity of products Polymer Technologies adopted targets production of all grades 16

19 IndianOil Petrochemicals Promoting Investment Refinery NCU/PX C2/C3 d/s, PTA units End to End Infrastructure Finished Goods Processing unit Warehouse 17

20 Product Application & Development Centre - PADC PADC is the interface between Plant, Marketing & Customers New Application Development Technical Support to Customer PADC New Grade Development Developed and Introduced 2 High Performance Grades 1110MAS, 2120MC Developed HD Grade for Tarpaulin Application produced from Swing Plant USFDA Approval obtained for 19 PE/PP Grades for Food Applications and 7 for RoHE (Reduction of Heavy Substance) Developed recipes for sourcing cost effective additives from domestic market for TQPP and LLDPE Stringent Quality monitoring done to deliver high quality grades State of Art Technology Centre with sophisticated Plastic Processing & Characterisation equipments 18

21 Petrochemicals - Applications 19 CFTRI approval obtained for Propel brand of PE and PP grades for general food contact application (conforms to USFDA and BIS standards) 15 OEM approvals obtained for Propel brand of PE and PP 19

22 Propel Global Presence Exports - Petrochemicals Angola Indonesia Mexico Peru UAE Australia Israel Netherlands Phillipines USA Bangladesh Italy Nigeria Portugal Vietnam Belgium Japan Norway Qatar Yemen China Kenya Oman Saudi Arabia Thailand Ghana Malaysia Pakistan South Africa Turkey South Korea Spain Sri Lanka Syria Nepal 20

23 Agenda About IndianOil IndianOil s Vision for Petrochemicals IndianOil in Petrochemicals Business Scenario Future Plans Summary & Conclusion 21

24 IndianOil s Vision Markets in North and East India have a lot of unfulfilled potential Target Pan India Presence with special focus on North & East Markets Develop Neighbouring markets Pakistan, Nepal, Bangladesh 22

25 Market Growth Proximate to a Major Plant IndianOil Plant will promote growth in Northern Region Presence of a proximate Polymer Plant 23 23

26 Population Vs Petrochem Demand 31% 21% 26% 47% 11% 22% Popln Regional Imbalance Increase Manufacturing Capacity in North & East 21% 21% Demand Source: IOCL Analysis 24

27 Development of Eastern India West of the Kanpur- Chennai line East of the Kanpur- Chennai line 50% 50% Kanpur- 32% 22% Chennai 8% IndianOil s Paradip Refinery will be a major driver of growth in Eastern India 25

28 Focus The North Indian Trading Zone Outlined Tear Drop Shape is home to 800 million people in 3 countries! Youngest Population Av Age 25 yrs Low per capita consumption of Petrochemicals scope for growth Adequate supply new plants Borders and Trade Opening up via Road and Rail routes Future growth hotbed

29 Agenda About IndianOil IndianOil s Vision for Petrochemicals IndianOil in Petrochemicals Business Scenario Future Plans Summary & Conclusion 27

30 Petrochemicals Upcoming Projects Indian Synthetic Rubber Ltd (ISRL) JV PARTNERS: IOC; M/s Taiwan Synthetic Rubber Corp (TSRC); M/s Marubeni, Japan Feedstock: Styrene and Butadiene Capacity : 120TMTPA Expected Completion: Q Cap Ex: Rs 890 Crs. 28

31 Petrochemicals Upcoming Projects Acetic Acid Project at Baroda JV PARTNERS: IOC; M/s BP Chemicals, UK Feedstock: Carbon Mono-oxide ( produced from petcoke gasification) & Methanol Capacity : 1000 TMTPA Expected Completion: Cap Ex: Rs 7900 Crs. 29

32 In Crs Ongoing projects and Investments PLANT LOCATION CAPACITY EXPECTED COMPLETION New Plants PP Plant Paradip 680 TMT Acrylic Acid/Acrylates Oxo Alcohols Gujarat Gujarat/Barauni 130 TMT 110 TMT Cumene/Phenol Haldia/Barauni 280 TMT Revamps LAB Gujarat 42 TMT* PX/PTA Panipat 100 TMT* Naphtha Cracker Panipat 250 TMT* *Incremental Capacities Investment (Crs) ** Turnover (Crs) 30 **Apr 12-Feb

33 Alternate Feedstock Options for Petrochemicals Raw C4/C5 streams from Naphtha Cracker significant potential to reduce cash cost of production of ethylene from Naphtha cracker by adding value to C4/C5 streams that are traditionally hydrogenated and recycled back to supplement cracker feed Upgradation of Pyrolysis Gasoline from Naphtha Cracker potential to recover styrene, mixed xylenes, toluene, naphthalenes which are petrochemical building blocks Petcoke/Coal/Residue Gasification & downstream based on syn gas production Deep Catalytic Cracking (DCC) - Selective cracking of feed stocks to maximize light olefins, recovery of ethylene from dry gas & propylene from LPG. e.g IOCL s INDMAX technology Utilization of surplus Coker naphtha olefins production while maximizing propylene. e.g. IOCL s INDALIN technology Ethane recovery Unit (for CDU, COKER Off gases) for feed to steam cracker Propane Dehydrogenation Unit (PDH) for on-purpose propylene production 31

34 Agenda About IndianOil IndianOil s Vision for Petrochemicals IndianOil in Petrochemicals Business Scenario Future Plans Summary & Conclusion 32

35 Summary & Conclusion Significant opportunity in domestic and neighboring market Petrochemical Projects would aim to achieve competitiveness by: Leveraging existing strengths in refining, marketing & supply chain Employing state of art technologies Locating plants close to low cost feedstock/ demand centres Building world scale capacities Low cost revamps/creation of grassroots integrated complexes Exploiting synergies available by integration with refineries Emphasis on C4/C5 feed streams available from cracker Enter into Niche segments in polymers/specialty chemical/elastomers Development of Alternate sources of petrochemical feedstock like Coal/Residue gasification, MTO/MTP, Deep Catalytic Cracking etc. Explore opportunities for participation in international projects with competitive feedstock pricing and bringing the end product to India Sustaining leadership in petrochemical business amongst PSUs 33

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