The demand for phenol in the domestic market has registered a CAGR of 8.5% to cater to the rapidly emerging industries based on phenolic applications. India's phenol imports from the US have grown steadily for the last three fiscal years. In contrast, phenol sales of domestic producers showed a steady decline over the period, ending March 2013.
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Phenol's production output fell by more than 22% in 2013-14 when compared to the previous year. Therefore, there is an immediate need for capacity addition if the industry is to bridge the widening gap between demand and production.
There are a number of potential Cumene/Phenol projects being contemplated in the country, which have prompted consideration of associated Bisphenol-A (BPA) and polycarbonate capacity. However, analyses suggest that the addition of polycarbonate to an integrated Cumene/Phenol project could be a much bigger step.
Phenol formaldehyde (PF) resins consume about 60% of India's total phenol production. Other major uses of the chemical include the manufacturing of alkylphenols, aniline, bisphenol A, adipic acid, plasticizers and pharmaceutical products.
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