Iran unveils the business opportunities for the Indian companies in Petrochemical sector at P4 Expo 2016

P4 Expo Iran

The seminar outlined the importance of reverse SEZ and the challenges and opportunities ahead of Indian & Iranian companies 

New Delhi: The 2nd day of P4 Expo 2016 was focused on the bi-lateral policies and relations that Iran and India shares. As the sanctions were lifted from Iran, the country made its presence felt at the P4 Expo 2016. Iranian officials and various company dignitaries urged Indian (Petro-chemical, Plastic, Packaging and Printing) manufacturers to join hands for the development of world-class products that can compete with the Chinese products in the market.

India is poised to become the 3rd largest consumer of polymers in the world, after US and China as the demand for plastics has touched 20 millions tones by 2015.

Iran’s 20-year Vision Plan targets the production of petrochemicals worth $70 billion a year at current prices. Iran seeks to more than double this capacity in the next decade and this call for an annual investment of between $7 billion and $10 billion. Companies from Germany, France, Spain, Italy, Netherland, South Korea, Japan and even U.S. have indicated readiness to take part in Iran’s petrochemical projects. Iran has plans to invest $80 billion over the next 10 years to upgrade and expand its petrochemical sector.

Mr. P.K. Gupta, Executive Director (Marketing- Petrochemicals & Retail), GAIL (India) said, “Polymers demand is ever increasing in the Indian market. Petrochemical industry is very capital intensive. We must find some low cost solutions. We are fortunate that now we are associated with a country like Iran which has huge reserve of resources and ample of business opportunities. Iran wants Chabahar port to be a free trade zone for which the government has been working. 20 billion investment is needed and if that is achieved, it will be a virtual make in India. Development of such ports will generate employment opportunities and importing of low cost resources will be vital for the development. It was unfortunate that for so long Iran was not allowed to participate in world business affair. However, we should not dwell into past and look for future prospects which Iran offers to India and India offers to Iran”.

Mr. Avinash Joshi, Jt. Sect., Dept. of Chemicals & Petrochemical, Ministry of Chemicals & Fertilizers said “We should all join our hands to make our PM Modi `s dream true of making India self reliant and self sufficient. Exhibition like this provides a great platform for both national and international players to show case what they are capable of. The recent political and business developments with Iran will strengthen the relation between the two countries. We are very optimistic and excited for our future ventures with Iran and the world in coming years. Petrochemical, plastic, printing industry is growing every day; our association with Iran will further boost the industries.”

In the new dynamics under the leadership of Prime Minister Narendra Modi, Iran is looking forward to work closely with India in areas including connectivity, oil and gas, investments, fertilizers, infrastructure development, among others. Recently, PM Modi has also reiterated that India accords high priority to its relations with Iran. With this expo, Iranian companies will get a leg up especially in the petrochemical sector.

Dr. A.K Ghosh, Professor & Head, Centre for Polymer Science & Engineering, IIT Delhi said “Sessions like these are important for the development of our sector. Both the nations are moving in the right directions which will lead to the possibilities of investment in petrochemical sector. India is very fortunate to have a friend like Iran which is rich in polypropylene. Together both the nations can build a centre for excellence and having a location like Chabahar is also an added advantage. Along with this we look forward for manpower development also.

The Indian government has invested Rs 1,47,000 crore to set up PCPIRs (Petroleum, Chemicals & Petrochemicals Investment Regions) , which has created 2,25,000 jobs. A total investment of Rs 7,70,000 crore is envisaged for all PCPIRs, which will eventually lead to creation of 3.4 million jobs. With Iran joining hands with India, it will further strengthen the bilateral relations between the two countries and will also boost the initiative taken by the Indian government. P4 expo will be a platform through which Indian chemical and petrochemical companies will be encouraged to set up plants in other countries to manufacture basic raw materials, especially in Iran. P4 expo will also give Iran a huge market to look forward for possible business opportunities in India.