The growing demand for phenol in India is supported by the anti dumping move on its import. It is attracting some companies to install Phenol Manufacturing lines in India. As per sources, three new lines are going to set up in India, which will add 3 lakhs ton production capacity per month. The sources confirm that one line is coming up in eastern India, where as two lines are proposed in Gujarat. Apart from this, Petroleum major Reliance Industries has also been working to set up Phenol manufacturing lines in India, and they are looking at feasibility reports. Sources say, if Reliance enters into Phenol manufacturing, India’s production capacity will go upto 3 times to the present capacity
It is noted that India consumes nearly 3.5 lakhs tons of Phenol every year, in which laminates and wood panel segment contributes about 60 percent share. Historic trends show that the consumption of phenol has been increasing in India year on year because of growing production of laminates, wood panel and other segments. With ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, the domestic production of these products will grow further with growing demand for Make in India furniture. The other related user sectors of Phenol are also reported to grow, hence as per report, India phenol consumption will grow by 40 percent in the next couple of years.
Presently domestic production of phenol contributes to just 60 percent of Indian market demands, hence there is a good potential to invest in Phenol manufacturing, as report suggests. Sources indicate that India will need about 5 lakh Tons of phenol every year by 2024, which is attracting investors to add phenol manufacturing lines in India. Anti Dumping Duty on Phenol Import is also helping domestic producers to improve their profit margins.