Archive · 4 Aug 2025
Petrochemical Sector to Consolidate, India Poised for Growth
The petrochemical industry, which makes chemicals from oil and gas, is going through a big change.
Companies are not making as much money as they used to, because they are making more products than people need.
This is causing them to merge or close down parts of their business.
India is in a good spot to become a leader in this change because people in India want to buy more of these products.
To succeed, companies in India need to buy other companies, use the best technology, and focus on being environmentally friendly.
This report encourages companies to plan for different situations and make decisions quickly to stay ahead.
Global petrochemical sector faces consolidation due to low margins and overcapacity.
Average ROCE in the sector fell to ~4% in 2024 from 8% in 2019.
Capacity additions are outpacing demand growth in several regions.
India is positioned to become a regional consolidator.
Companies must reassess portfolios and prepare for market scenarios.
- Who
- Petrochemical companies.
- What
- The petrochemical sector is undergoing consolidation.
- When
- The next few years.
- Where
- Globally, with a focus on India.
- Why
- Due to low margins, overcapacity, and shifts in regional growth.
Petrochemical Companies
Market Conditions
Margins
Petrochemical Companies
Increase operational efficiency
Market Conditions
Face tighter margins
- ROCE 2019
- 8%
- ROCE 2024
- ~4%
- Key Strategy
- M&A and rationalization
- Regional Opportunity
- India