Chennai, Oct. 2 -- India's decision to add petrochemical capacity may result in consolidation in the industry in Asia, said S&P Global Ratings.
In a report titled 'First China, Now India self-sufficiency goals will add to petrochemicals supply,' S&P Global Ratings anticipates that India will stick with major investment plans to reduce import dependency on chemicals used in everyday goods, from plastic bags to auto parts. This is an overhang on a sector that already faces overcapacity in Asia-Pacific.
"India's capacity additions in petrochemicals, which follows those of China, will increase competition within the broader Asian industry over the coming years," said S&P Global Ratings credit analyst Ker Liang Chan.
China and India are the w...