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

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

3. India - The Growth Story 3

4. 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

5. 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 (15-01-15) lagging indicator of the turnaround in the economy – Kicking the growth

6. Growth Drivers 6

7. 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) 2012-30 ($ billion) Total Investments >$ 860 bn

8. 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

9. Infrastructure 1 st Airport 125 Airports 1928 2014 Air 1947 1 Port after Independence 2014 13 major Ports Water 400 4689 In thousand kms 1950 - 51 2014 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 11.67 km) 9

10. Retail and Packaging to fuel growth 10 2013 27 Bn 2020 470 Bn Milk, snacks, poultry to drive packaged food industry growth Expected annual growth rate of 15% per annum Organized Retail Packaging

11. 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

12. A day in the life of India: 2013 vs 2020 12 Average Daily Sales in India: 2013 & 2020 6000 16438 79452 63014 36400 36800 1060022100 21918 10100 41096 19178

13. Indian Petrochemical Industry 13

14. 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

15. 12 th Five Year Plan Projections …

16. 12 th Five Year Plan Projections Contd.

17. 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

18. Path Forward 18

19. 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

20. 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

21. 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

22. Challenges 22

23. 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

24. Thank You 24