Shaping Growth of Petrochemicals in India Amit Chaturvedi Reliance Industries Limited 1

Contents 2 Growth Drivers Indian Petrochemical Industry India – The Growth Story Path Forward Challenges

India - The Growth Story 3

GDP Growth 4  60 years for the first US$ 1 trillion of GDP  It is expected to take only 8 years for US$2 trillion, today India is 10 th largest economy in world  Subsequent trillions in 5 and 4 years

India: On the path of economic recovery 5 Dependent on strong and sustained progress on reforms Economic recovery is underway Sharp slide in inflation to multiyear lows Reform momentum has picked up on the back of Measures to cut red tape Expected increase in infrastructure investment Deregulation of key parts of the economy Soft oil prices will help economic growth by Opportunity to reduce subsidy and fiscal deficit Raising real incomes and support consumption Easing current account pressures RBI slashed key lending rates ( ) lagging indicator of the turnaround in the economy – Kicking the growth

Growth Drivers 6

Accelerated Urbanization 7 Increasing urban share in population – 2011: 31% – 2021: 35% – 2030: 40% Number of cities with population >1 million to rise from 53 in 2011 to 75+ in 2021 Investment Required in Urban Infrastructure (excl Housing) ($ billion) Total Investments >$ 860 bn

Purchasing power continues to rise 8 Source: NCAER, Reliance Research 50% of India’s population is < 25 years of age and 65% is < 35 years old

Infrastructure 1 st Airport 125 Airports Air Port after Independence major Ports Water In thousand kms Road Projects worth 4200 Cr awarded already Major ports to double capacity in next 5 years to 1600 MTPA India Second in Air Traffic Growth Target 934 crore investments by AAI for FY15 15 additional airports to be constructed Projects worth Rs 1.5 lakh crore cleared till date Projects worth Rs 2 lakh crore to be launched this year 1860 km of new road contracts awarded in 1st five months of FY15 Proposed to award over 23 km projects daily (against 8.6 km) Govt. aims to complete construction of over 17 km road a day (against km) 9

Retail and Packaging to fuel growth Bn Bn Milk, snacks, poultry to drive packaged food industry growth Expected annual growth rate of 15% per annum Organized Retail Packaging

Housing and Water Supply & Sanitation 11 Rapid urbanization Decline in population below poverty line Focus on affordable housing Investment of ~US$ 80 Bn in coming years to build 25 million houses (shortage of houses in India) Water supply and sanitation a key thrust area for the Govt

A day in the life of India: 2013 vs Average Daily Sales in India: 2013 &

Indian Petrochemical Industry 13

Our Journey to 10 MMT 1 st Mn Ton 30 years Every 5 years 1 Mn Tons Every 2 yrs Every yr KTs India is adding 1 MMT consumption per year 14

12 th Five Year Plan Projections …

12 th Five Year Plan Projections Contd.

12 th Plan: New capacity  Job Creation App 21 MMT capacity planned. This will create > 1.5 million direct and indirect jobs in petrochemicals and downstream processing

Path Forward 18

India’s per capita consumption one of the lowest Per capita Polymer Consumption (kgs) ^ Asia denotes average of developing SE Asian countries 19 Kgs in 2022 A catch-up to the levels of other Asian countries to lead to several decades of high growth- Big opportunity 19

Make in India 20 To boost to share of manufacturing in GDP Leading to higher growth and job creation Thrust sectors where India will grow Chemicals Automobiles Pharma Textiles IT Ports Railways Aviation Food processing Electronics To further unlock potential for petrochemical industry

Specialty chemicals – key to nation building 21 Agri & Food Security Agrochemicals Infrastructure & Construction Auto & transportation Municipal & Industrial Water Textile Construction chemicals Specialty Polymers Water treatment chemicals Textile chemicals

Challenges 22

Challenges to be addressed 23 Sustainability Competition from feedstock advantaged regions like ME, US shale gas WTO FTAs Manpower availability Technology Petrochemical industry – potential to be unlocked & unleashed

Thank You 24