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    Business Outlook: Polymer

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    aadhya
    1. Due to COVID-19, demand for polymers is expected to decrease in 2020-21 leading to a surplus supply of 1300KT of PP and 1700KT of PE. With IOC's new plant, its market share of polypropylene is expected to increase. 2. Stiff competition is anticipated as producers try to keep plants running, and demand patterns may change with some sectors like packaging increasing while automotive and appliances decrease. 3. IOC is adjusting production to focus on medical and food packaging while exploring exports to neighbors like Bangladesh and Myanmar to improve profits and plant utilization.

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    Business Outlook: Polymer

    Uploaded by

    aadhya
    10 views1 page
    1. Due to COVID-19, demand for polymers is expected to decrease in 2020-21 leading to a surplus supply of 1300KT of PP and 1700KT of PE. With IOC's new plant, its market share of polypropylene is expected to increase. 2. Stiff competition is anticipated as producers try to keep plants running, and demand patterns may change with some sectors like packaging increasing while automotive and appliances decrease. 3. IOC is adjusting production to focus on medical and food packaging while exploring exports to neighbors like Bangladesh and Myanmar to improve profits and plant utilization.

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    1. Due to COVID-19, demand for polymers is expected to decrease in 2020-21 leading to a surplus supply of 1300KT of PP and 1700KT of PE. With IOC's new plant, its market share of polypropylene is expected to increase. 2. Stiff competition is anticipated as producers try to keep plants running, and demand patterns may change with some sectors like packaging increasing while automotive and appliances decrease. 3. IOC is adjusting production to focus on medical and food packaging while exploring exports to neighbors like Bangladesh and Myanmar to improve profits and plant utilization.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views1 page

    Business Outlook: Polymer

    Uploaded by

    aadhya
    1. Due to COVID-19, demand for polymers is expected to decrease in 2020-21 leading to a surplus supply of 1300KT of PP and 1700KT of PE. With IOC's new plant, its market share of polypropylene is expected to increase. 2. Stiff competition is anticipated as producers try to keep plants running, and demand patterns may change with some sectors like packaging increasing while automotive and appliances decrease. 3. IOC is adjusting production to focus on medical and food packaging while exploring exports to neighbors like Bangladesh and Myanmar to improve profits and plant utilization.

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    of 1

    Polymer

    1. Business Outlook

     Due to COVID-19 issues, demand of polymer is estimated to shrink in FY 2020-21 It


    is estimated that supply surplus over domestic demand is trending upwards due
    to higher supply and lower demand.
     The estimated surplus is PP-1300 KT & PE-1700 KT.
     With IOC Paradip plant is planned to be operated at capacity, IOC market share in
    Polypropylene will increase.
     Stiff competition is expected in the domestic market as domestic producers will try to
    keep their plants operational.
     Change in demand pattern likely as demand in packaging industries is likely to
    increase, whereas in automotive and appliances sector likely to shrink. Demand in
    flexible and rigid packaging , non-woven fabric, medical and sanitary tissues,
    Diapers, , extrusion coating on substrate PP Raffia fabrics, medical sector (syringes
    etc.) estimated to increase.
     Accordingly, production plan of Raffia, BOPP, Fibre and Filament, Random Co-
    Polymer, Blow moulding, LL Film will increase, whereas in Impact co-polymer,
    market is likely to be subdued.

    2. Major financial figures including operation cost, PAT, etc.


     Due to surplus of product in domestic market, competition is expected in the domestic
    market as domestic producers will try to keep their plants operational. This will likely
    result in large discounts and incentives being offered to customers in the domestic
    market and lower margins for co-producers.

    3. Reframed Strategies for Post COVID scenario


     Sales plan of 150 KT per month, in line with production plan, is being firmed up with
    a delicate balance of demand vs price matching in domestic market.
     Preference for production would be given to the grades which are used food
    packaging, medical (PPE), pharma applications would be produced more.
     Sector like agriculture, manufacturing of digital equipment, medical instrument would
    be in demand. IOCL is fully geared up to capture any such new demand.
     Production preference would be given for the grades which are used in general
    purpose blow moulding (Pharmaceutical, edible oil packaging), water
     Production of new grades for medical sector (syringes applications).
     Production plan is being revised in line with estimated demand in various sectors.
    Production of Raffia, BOPP, Fibre and Filament, Random Co-Polymer, Blow
    moulding, LL Film will increase, whereas in Impact co-polymer, market is likely to
    be subdued.
     Due to surplus in domestic market, export in Nepal has been increased. Based on
    surplus in domestic market, export of homo polymers is being planned to
    neighbouring countries Bangladesh and Myanmar on CFR basis, to improve the
    netback. This would enable operating the plants at PNC and PDR at full operating
    rate.

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