Linear Low-Density Polyethylene (LLDPE) demand in India grew at a CAGR of around 9.5% during 2015-2019 and is expected to achieve a healthy growth rate during the forecast period. LLDPE is a substantially linear polymer manufactured by copolymerization of ethylene with small-chain alpha-olefins (such as, 1-butene, 1-hexene, 1-octene etc.). LLDPE is said to possess better characteristics than LDPE such as higher tensile strength, superior toughness and improved impact resistance. Among all the categories of polyethylene, LLDPE is projected to achieve the sharpest growth in the forecast period.
Due to its remarkable properties, consumption of LLDPE is growing in various end use industries such as packaging, agriculture, construction and automotive. LLDPE films are known for their reduced thickness and flexibility and hence find popular consumption in carrier bags, pouches, and agricultural covering films and others. Among all the end users, packaging sector accounts for the largest market share with about 65% share in the India’s LLDPE demand. Apart from that, demand from other applications like extrusion of pipes, profiles, and cables is expected to show a gradual improvement with increasing investment of the Indian government in the country’s agricultural sector. Rotational molding is one of the fastest growing plastics processing methods today, because products of versatile shapes and sizes can be generated. This has enabled rotational molders to enter markets where vinyl processes could not stand.Demand for versatile class of LLDPE roto molding grades serving extensive applications in automotive components, insulated containers, tanks etc. is expected to drive the overall LLDPE market in the forecast period.
However, sudden outbreak of novel coronavirus weighed over the demand for polymer products in Q4FY20, causing players to deal with huge inventory pileups and slump in total annual sales. The decline remained closely impacted due to India’s economic and infrastructural slowdown caused due to nationwide lockdown. As a result of halt in industrial activities further pressured by muted demand, several state controlled LLDPE refiners such as OPAL and RIL curtailed their operating rates at their high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE) production lines. However, with ease in lockdown restrictions by the month of May, the companies scaled up their production activities to recover potential losses. The outlook for LLDPE is likely to remain positive in the current fiscal and in the forecasted period with India strongly heading towards recovery and players scaling up their operating rates after a prolonged disruption in activities.
Years Considered for this Report:
Historical Years: 2015 – 2019
Base Year: 2020
Estimated Year: 2021
Forecast Period: 2022 – 2030
Objective of the Study:
- The primary objective of the study was to evaluate and forecast LLDPE capacity, production, demand, inventory, and demand – supply gap in India.
- To categorize LLDPE demand based on application, end use, type, grade, region and sales channel.
- To study trade dynamics and company share in India LLDPE market.
- To identify major customers of LLDPE in India.
- To evaluate and forecast LLDPE pricing by grade in India LLDPE market.
- To identify and profile major companies operating in India LLDPE market.
- To identify major news, deals and expansion plans in India LLDPE market.
Some of the major players operating in India LLDPE market are Reliance Industries Limited, GAIL India Limited, Indian Oil Corporation Limited, Haldia Petrochemicals Limited, ONGC Petro additions Limited, Brahmaputra Cracker and Polymer Limited, etc. The Dow Chemical Company, ExxonMobil, SABIC, SINOPEC group etc. are some of leading international players operating in the India LLDPE market. Large scale capacity additions and lucrative investment opportunities in India will surely drive the LLDPE market growth in the years to come. In FY19, India’s HPCL-Mittal Energy Ltd (HMEL) received clearance from ministry of environment for adding a polymer unit at its Guru Gobind Singh refinery and Petrochemical complex. The proposed unit would house two LLDPE/HDPE swing plants of capacity 400 KTPA each, a 500 KTPA PP plant, a 450 KTPA HDPE unit and a 55 KTPA butane-1 line. The project is expected to complete by April 2021.
Import of LLDPE declined by almost 10 per cent in FY 2020 and LLDPE prices were assessed at USD XXX per MT on bulk contract basis. LLDPE film CFR prices in India lowered down by $10 to around $790-830/tonne in Q4FY20 due to COVID-19 related uncertainties. However, with downstream sectors restarting their production activities, prices are likely to show an uptrend by the Q2FY21.
To extract data for India LLDPE market, primary research surveys were conducted with LLDPE manufacturers, suppliers, distributors, wholesalers and end users. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various end user segments and projected a positive outlook for India LLDPE market over the coming years.
ChemAnalyst calculated LLDPE demand in India by analyzing the historical data and demand forecast was carried out considering the end use industries growth. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
- LLDPE manufacturers and other stakeholders
- Organizations, forums and alliances related to LLDPE distribution
- Government bodies such as regulating authorities and policy makers
- Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders, such as LLDPE manufacturers, distributors and policy makers. The report also provides useful insights about which market segments should be targeted over the coming years to strategize investments and capitalize on growth opportunities.
In this report, the India LLDPE market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Market, by Type- Mono layer & Multilayer Films, Extrusion Coating, Rotational Molding, Others
Market, by Application- Flexible Packaging, Extrusion Coated Lamination, Rotational Molding and Others
Market, by End Use- Packaging, agriculture, construction, automotive, houseware, marine, toy components, Others
Market, by Sales Channel- Direct/Institutional Sales, Retail Sales, Other Channel Sales
Market, by Region- North, West, East and South
ChemAnalyst offers detailed analysis of major players including basic company details, Segmental/product information, financial matrices, growth strategies, expansion plans, collaborations, SWOT analysis etc.to give a comprehensive and meaningful insights on the respective product market.
With the given market data, ChemAnalyst offers customizations according to a company’s specific needs.