Haldia Petrochemicals Limited (HPL), a flagship venture of The Chatterjee Group (TCG) promoted by Dr. Purnendu Chatterjee, is a testimonial to the Industrial Renaissance in West Bengal. HPL considers it a privilege and a responsibility to chronicle several decades marked by transformative achievements, resilience, and unwavering dedication to India's industrial renaissance through the ‘Make in India' initiative. Our journey at HPL symbolises India's evolving industrial prowess and commitment to excellence.
HPL is the first and only integrated petrochemical complex along the eastern coast of India, manufacturing high-quality polymers like high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), and polypropylene (PP), as well as chemicals/fuels like benzene and butadiene from its naphtha cracker capacity of 700 KTA of ethylene. Over the years, the company has expanded its footprint and added several products to cater to multiple segments.
Since its commissioning in 2000, its focused business development approach to promote local downstream industry growth has led to the setting-up of more than 2,000+ manufacturing units in Eastern India, generating over one million direct and indirect jobs.
As the country progresses towards celebrating the centenary of our Independence and works towards realising the vision of Amrit Kaal 2047 envisaged by Hon'ble PM, the Petrochemical industry is likely to play a critical role in nation-building. The sector plays a crucial role in producing high-performance products needed for diverse applications across various sectors.
Despite huge growth in the last 2-3 decades, India remains a net importer of most petrochemical products. India's Chemical Industry accounts for 3-4 per cent of the global industry base despite being home to almost 16-17 per cent of the global population. Considering the large population base, favourable demographics, rising urbanisation, changing customer preferences towards high-end speciality products and huge investment in infrastructure, the demand for petrochemicals is forecasted to grow manifold in the next decades. It is estimated that the chemical and petrochemicals industry will become 1,000+ billion USD by 2047 from the current 200 billion USD. The growth will be attained through innovative and judicious utilisation of resources, keeping long-term sustainability in focus.
Besides bulk and niche chemicals, India is likely to see strong growth in Specialty Chemicals. Rising disposable income and the consequent demand growth for value-added products, along with emerging export opportunities, are both likely to lead to an 8-10 per cent CAGR growth of Specialty Chemicals in India and are likely to outpace China in the next few decades. Strong process engineering capabilities, an abundant skilled workforce, and low-cost manufacturing capabilities are likely to provide a strong impetus to the growth of the chemical industry in the country.
Besides bulk and niche chemicals, India is likely to see strong growth in Specialty Chemicals. Rising disposable income and the consequent demand growth for value-added products, along with emerging export opportunities, are both likely to lead to an 8-10 per cent CAGR growth of Specialty Chemicals in India and are likely to outpace China in the next few decades. Strong process engineering capabilities, an abundant skilled workforce, and low-cost manufacturing capabilities are likely to provide a strong impetus to the growth of the chemical industry in the country.
Another challenge to the industry is the need for clean technology development to meet the country's ESG commitment to a global forum. Being energy-intensive, Petrochemicals must develop newer routes to minimise global footprint.
Against this backdrop, HPL's acquisition of Lummus Technology is a proud moment for the country and will likely become a major enabler in realising the "Make in India" dream in petrochemicals. Lummus Technology, with a heritage spanning 110 years, is a leading master licensor of proprietary technologies in refining, petrochemicals, gas processing and coal gasification sectors and a supplier of proprietary catalysts, equipment, and related engineering services. Lummus Technology has around 130 licensed technologies and over 3,400 patents and trademarks. The Lummus acquisition provides enormous opportunities for Indian talent exposure to cutting-edge technology. It may benefit the Indian engineering industry in developing the manufacturing capability of large proprietary equipment.
The acquisition also provides the Indian Refining and Petrochemical Industry with the opportunity to work closely in technology development with Lummus to develop solutions to meet specific demands. Lummus TC2C (Thermal Crude to Chemical) technology will likely play a critical role in meeting the country's demand for petrochemicals without producing fuels. The technology, besides ensuring direct conversion of crude into petrochemicals, also provides a significant cost of production advantage and is likely to enhance India's export competitiveness on the global stage.
Besides providing strong technology leadership, HPL is working on multiple fronts to make the country self-sufficient in niche chemicals. HPL is setting up India's largest integrated phenol plant and working on various other chemical segments where India remains dependent on imports. The Indian chemical industry is truly looking forward to Amrit Kaal's growth and is all set to support India's mission of Aatmanirbhar Bharat.
