It is not uncommon that management attention and efforts are predominantly occupied by marketing issues, and understandably so! However, in their quest for earning the extra rupee, are they leaving out the money that is already on the table? The fact is, when competition is aggressive, every rupee counts.

With the reduction of import duty over the years, industry is now open to global competition. Further the duty differential between final products and raw material (naphtha) is narrowing down, and companies are facing increasing pressure on margins. No sizeable capacity addition is expected globally in the next two years and demand is growing at a fast pace. This would result in narrowing of demand supply gap. A deficit of 5mmt and 4.5mmt of PE and PP is anticipated in Asia in the next two years