Periodic Project Review I (PPR I)

On
Chemical and Fertilizer Industry in Venezuela
Submitted to:
805
S. R. Luthra Institute of Management
Under the Guidance of:
Ms. Parinaz Bharucha
Assistant Professor
Prepared by: Students of MBA (Semester III)
Group Identify No.GPRN2016VENE80500018
Month & Year: September 2016
Prepared By:
Students

Student Enrolment

Student Name

Registration No
SRN201680500798
SRN201680501141

No
158050592075
158050592088

PATEL PRACHI
RINCY THOMAS

SRN201680501144
SRN201680501184
SRN201680501238
SRN201680501251

158050592089
158050592096
158050592103
158050592106

RISHI PATEL
SHARON RAJU
SONI RUCHI
SURATI
BHAVINKUMAR

CGBS-PROJECT REVIEW SYSTEM (PRS) for GCSR

Semester III
PERIODIC PROJECT REVIEW (PPR - I)
PPR - 1:
S.
N
o
1

Particulars

Worked by
(Student
Registration No)

About selected Country

Overview Geographic location,
SRN201680501251
languages, currency & exchange
rate, religions, flag, national
anthem, ruling party etc.
Latest news/ developments in
the country
Overview of Industries, Trade and
Commerce in the Country of study
SRN201680501184
List of Industries
Contribution of industries in
national GDP
SRN201680501144
Export-Import statistics
Major players of each industry
SRN201680501141
with their market share
Details of selected industry w.r.t.
Gujarat: Brief about subsegments of the industry/
sector,
Contribution of selected industry
in national GDP,
SRN201680500798
Major players of selected
industry and its sub-segments
with their market share,
Local taxes and duties
applicable in selected
industry/sector, any special
benefits given by state
government to the industry
About selected Industry / Sector
SRN201680501238
of country of study
Overview of selected industry
Justification for selecting the
Industry / Sector in terms of

bilateral trade opportunities with

India/Gujarat (Literature review
from published reports, Ministry
of External affairs, National /
International repute
organization or any other
authentic sources for selecting
industry/ product/ sector, List of
Web sources/ References)

1. About Venezuela
1.1 Overview
Venezuela, sixth largest country in South America as well as the
sixth-most populous country in Latin America with population just
over 900,000. It is located at the northern extreme of South
America. The country is divided into 23 states including Caracas as
capital. There are fine stretches of the Andes, huge areas of
Amazonian rain forests, fertile plains called Ilanos, miles of
Caribbean shoreline, and even a small desert. The country is gifted
by few geographical superlatives, like the worlds highest waterfall
and the largest lake in South America.
Figure 1 Map of Venezuela

1.2 Geography
Venezuela is third larger country then Texas and located on a most
occupied northern coast region of Caribbean Sea which is 2800 kilo
meters in South America. It is surrounded by Colombia up to west,
Guyana to east side and according to south up to Brazil. Venezuela
is having an area of total land 882,050 square km which is about
twice the size of California.

Venezuela is divided fairly into four regions:

1. Maracaibo lowlands in the northwest
The low land is bordered by mountains on three sides and
open to the Caribbean sea to at the north. Overall area is flat
with only slice slop to the center and little bit away from the
mountains that surround the region. Hence, the rich and
fruitful agricultural land and significant petroleum deposit, the
area was still thinly populated in 1990.
2. Northern mountains extending in a broad east-west arc from the
Colombian border along the Caribbean Sea.
The high mountains have peaks is over about 4500 meters
and all the fertile valleys between the ranges contain most of
Venezuelas people.
3. Wide Orinoco plains (llanos) in central Venezuela and the highly
dissected Guiana highlands in the southeast.
An Orinoco plain called as llanos, which extends its boundary
towards westward from the Caribbean coast to the Colombian
border in-between the northern mountains and most extreme
side of Ro Orinoco.
4. The Guiana Highlands, south of the Orinoco, accounting for nearly half
the national territory.

1.3 Languages
Spanish is an official language of the republic of Venezuela. There is
some heterogeneity in the nature of Spanish language with respect
to Venezuela like Spain. As there are less irregular verbs, the
Spanish verb conjunction is much easier than others.
There are approx. 31 primitive languages where 25 of them can be
grouped into seven lexemic families and rest other is unclassified.

1.4 Currency

Figure 2. 1000 Bolivar

Bolvar is a currency of Venezuela. Their currency rankings conclude
that exchange rate of VEF to USD rate is most popular ever. The
currency code VEF is represent bolivar, and the currency symbol is
Bs. Bolivar dropped approx. to 100 per dollar in September 2014
which was historical drop of currency with respect to Venezuela
according to Dollar today. The highest value of bolivar against US
dollar ever was 9.94 bolivar per USD.

1.5 Religion
Venezuelas population is mostly roman and Its estimated that
above 90% population are Roman Catholic according to religion.
About 8% are Protestant where rest comes into another religion, or
are atheist. There is small Jewish and Muslim community across 23
states of Venezuela including capital CARACAS.

1.6 Flag
Figure 3 Venezuela's Flag

The

horizontal tri-color flag was waved in March 12, 2006 and designed
by Francisco de Miranda which include traditional emblem and eight
five pointed stars in it. These stars are for Caracas, Cumana,
Barinas, Barcelona, Margarita, Mrida and Trujillo and the eighth star
is the Bolvar Star, was included in 2006 to Honor Simon Bolivar.
Moreover these three colors have different meaning like red color
represent courage of Venezuelan and the blue color represents the
independence from Spain. Yellow indicates the wealth of country.

1.10 National Anthem

When Venezuelas independence had declared, Spanish firing squad
wrote the anthem for the republic of Venezuela in 1814 which known
as Venezuelan Marseillaise and as well as Gloria al Bravo Pueblo
(Glory to the Brave People).

1.11 RULING PARTY

Venezuela is being ruled by the United Socialist Party of Venezuela
which supports Bolivarian revolution with Participative Democracy
that too with Presidential System.
The party is headed towards national level by the eternal President
Hugo Chavez (14 April 2002 5 March 2013), the current president
Nicolas Maduro from April 19, 2013, Vice-president Jorge Arreaza,
and another 29-member national board of directors.

1.12 LATEST NEWS

1. Venezuelans throng streets of Caracas capital of Venezuela
seeking recall referendum for president.
a. Hundreds of thousands of people joined as opposition
while Nicolas Maduro currently president told a big rally
of supporters: Today we have defeated a coup attempt

2. According to one of the reports published by ABC news:

Venezuela is facing hard time against the hunger and poverty
people are going throng on the street and president claimed
that Venezuela is failed country in Latin America.
a. It describes overall position of state and government of
current scenario
3. As per news by vanazuelanalysis: Venezuela is taking a step
ahead with new mining development.
a. The first face of this mining project has been started in
September month itself.
b. It declared that the development of mining project is
under strict adherence of Venezuelan environmental
norms.
4. Venezuelas president announced 2016s new minimum wage
rate.
a. Moduro said recent minimum wage of Venezuela is
15,051 bolivars, and the equivalent of $USD 23.40 with
a food bonus equal of 18.585 bolivars or, $USD28.90.
The amounts is about to increase to 22,576 bolivars in
$USD

35.11

and

42,480

bolivars

in

$USD

66,06

respectively.
b. In addition moduro said its about to protect population
against the economic war carried out by the world.

2. Overview of Industries, Trade and Commerce in

the Venezuela
2.1 List of Industries
Automobiles
Venezuela is the 4th largest in the Latin America, after Brazil,
Argentina & Mexico and also it is the 36 th largest Worldwide in
automobile business. In 1970s & 1980s production of vehicle was
between 150-200 thousand per year of mostly US developed
vehicles. Then in 2014 the auto industry collapsed, producing only
6,161 automobile in the first part of year. Most of the companies
have stopped its operations due to the difficulty in obtaining dollar
denominated auto parts using Venezuelan monopoly money.
Petrochemicals
Venezuelan is the country which have maximum potential for
producing petrochemical to the range that they are currently
constructing eight large petrochemical facilities and one of which is
built with the support of Belarus to exploit phosphoric rock and
convert it into fertilizer.
Healthcare
Venezuela has improved which ranks pharmaceutical markets
according to their attractiveness to international drug makers.
Venezuela's pharmaceutical market is expected to grow at doubledigit rates through to 2025 in local currency terms, though largely
due to hyperinflation. The country's poor business environment will
keep investment and productive capacity subdued in the short term.
Energy
Venezuela has proved to be the worlds biggest reserves in 2014.
About 1/3rd of the countrys GDP and 50% of the Govts revenue and
80% of export earnings of Venezuela. It is also amongst world
leaders in hydroelectric production that suppling majority of the
nations electrical power through the process. It has the largest

conventional oil reserves and 2nd largest natural gas reserves in the
Western Hemisphere.

Transportation
Venezuela has a limited National railway system that has no active
rail connections to other countries. Venezuela has a road network
around 100000 Km (placing 47th in the world) and around 3rd of
roads are paved (cemented). In 2014, because of difficulty in
converting bolivars to other currencies many international airline
either cut back or entirely cancelled its service to the country.
Mining Sector
Venezuela is known as producer and exporter of minerals such as
bauxite, gold, coal, iron ore, oil and state controls most of the
countrys vast mineral reserves. In the Orinoco Arc and other areas
Venezuela has the 2nd highest gold reserves in the world. As a part
a of it now in 2016 settlement of a dispute over withdrawal of a gold
concession to Gold Reserve, a Canadian mining company the
government entered into a joint venture to exploit the Brisas and
Las Cristinas goldmines.

2.2 Contribution of industries in National GDP

(2015)

Manufacturing sector

17%

Agriculture

3.9%

Mining

13%
12%

Oil Sector
1.5%
Healthcare
4.6%
Tourism and Ecotourism Sector

Source: https://venezuelanalysis.com/basicfacts

http://www.focus-economics.com/countries/venezuela

Source: http://www.tradingeconomics.com/venezuela/gdp

The GDP of Venezuela was worth 509.97 Bn US Dollars in 2014. The

GDP value of Venezuela signifies 82% of the world economy. GDP is
averaged to 98.51 USD Bn from 1960 until 2014, reaching an alltime high of 509.97 USD Bn in 2014 and decreased to 8.61 USD Bn
in 1960.

2.3 Economy of Venezuela

2013

2014

GDP Per Capita (PPP)

$19,000

$18,000

GDP (Official Exchange Rate)

GDP- Real Growth Rate

GDP (PPP)
Gross National Saving
Unemployment
Budget Surplus(+) Deficit (-)
Inflation Rate for consumer
Items

$16,700
$239.6
bn

1.30%
-3.90%
-5.70%
$569.1
$546.9
$515.7
bn
bn
bn
22.20%
15.30%
12.20%
7%
8.10%
-60.50%
-

Exports

Imports
Reserves for Foreign
Exchange & Gold
Exchange Rates Bolivars per
US dollar

Stock of FDI Abroad

Stock of FDI- Home

2015

6.284

62.20%
$74.71
bn
$33.36
bn
$22.09
bn

121.70%
$47.53
bn
$47.51
bn
$15.41
bn

6.284
$27.74
bn
$58.44
bn

6.284
$29.17
bn
$58.84
bn

Figure 5 The Gross Domestic Product (GDP) in Venezuela

Source: http://www.tradingeconomics.com/venezuela/gdp

The GDP of Venezuela was worth 509.97 Bn US Dollars in 2014. The

GDP value of Venezuela signifies 82% of the world economy. GDP is
averaged to 98.51 USD Bn from 1960 until 2014, reaching an alltime high of 509.97 USD Bn in 2014 and decreased to 8.61 USD Bn
in 1960.

2.4 Export-Import statistics

A federal republic on South Americas northern coast, Venezuela is
bordered by Guyana to its east, Brazil to its south and Colombia to
its west. Exports from Venezuela sank to an estimated US$37.9
billion in 2015, down -58.4% since 2011. Year over year, the value of
Venezuelan exports fell -46.3% from 2014 to 2015. Venezuela is
highly dependent on its oil exports which dominated 90.6% of the
countrys

total

product

shipments.

Therefore,

Venezuela

is

particularly vulnerable to the global downswing in oil prices. 82.4%

of its petroleum exports are crude oil with the remaining 17.6%
comprised of refined petroleum products including gasoline. Based
on statistics from the International Monetary Funds World Economic
Outlook Database, Venezuelas total Gross Domestic Product was
$479.1 billion as of April 2016. That metric represents 7.1%
deterioration from 2015, according to WorldsRichestCountries.com.
Using the latest GDP numbers, exports during 2015 account for
about 7.9% of total Venezuelan economic output. Given Venezuelas
population of 29.3 million people, the estimated $37.9 billion in
2015 Venezuelan exports represents roughly $1,290 for every
person in the countrycut almost in half from comparable statistics
for

2014.

2.4.1 Venezuelas Top 10 Exports

The following export product groups represent the highest dollar
value in Venezuelan global shipments during 2015. Also shown is
the percentage share each export category represents in terms of
overall exports from Venezuela.
Product name
Oil
Gems, precious

Export in US$
343 billion
922.1 million

%
90.6%
2.4%

metals
Organic chemicals
Iron and steel
Ores, slag, ash

583.4 million
419.3million
375.6million

1.5%
1.1%
1%

Aluminum
Inorganic chemicals
Fertilizers
Fish
Electronic equipment

261.8million
223.6million
146.3million
81.8milllion
53million

0.7%
0.6%
0.4%
0.2%
0.1%

Among the top 10 Venezuelan exports above, unwrought or semimanufactured gold led the gems and precious metals category to its
4,712% value gain since 2011.
In second place was fish up 484.6% for the 5-year period ending in
2015. The organic chemicals product category appreciated by
234.4% over the same period. Electronics exports improved by
104.8% while shipments of inorganic chemicals moved ahead by
46.4%.
Oil was the big loser among Venezuelas top 10 exports, down by
-61.2% from 2011 to 2015. Iron and steel exports depreciated by
-57.6%, followed by the ores, slag and ash category which dropped
by -34.9%.
Venezuela is the 51st largest export economy in the world. In 2014,
Venezuela exported $63B and imported $36.6B, resulting in a
positive trade balance of $26.3B.
The

top

exports

of

Venezuela

Petroleum ($47.8B), Refined

Petroleum ($10.9B), Acyclic

Alcohols ($606M), Gold ($580M)

and

using

the

the

1992

classification.

revision
Its

Petroleum ($2.94B),Packaged
Bovine

of
top

Petroleum
HS

Coke ($425M),

(Harmonized

imports

System)

are Refined

Medicaments ($1.71B), Frozen

Meat ($1.07B),Concentrated

and Corn ($726M).

are Crude

Milk ($776M)

Figure 6 Export destination

Source: From Atlas Media

Forecast of Export
Exports in Venezuela are expected to be 8730.37 USD Million by the
end of this quarter, according to Trading Economics global macro
models and analysts expectations. Looking forward, we estimate
Exports in Venezuela to stand at 8938.22 in 12 months time. In the
long-term, the Venezuela Exports is projected to trend around
11229.97 USD Million in 2020, according to our econometric models.
Actual and future forecast
Forecas Actua Q3/1

Q4/1

Q1/1

Q2/1

2020

Unit

t
l
Exports 8483

6
8670

7
8960

7
8940

1120

USD

6
8730

0
Source: From Trade Economics

Million

Figure 8 Exports in Venezuela

Source: From Trade Economics

Venezuela Exports Forecasts are projected using an autoregressive

integrated moving average (ARIMA) model calibrated using our
analysts expectations. We model the past behaviour of Venezuela
Exports using vast amounts of historical data and we adjust the
coefficients of the econometric model by taking into account our
analysts assessments and future expectations. The forecast for Venezuela Exports - was last predicted on Thursday, August 25,
2016.
2.4.3 Import
In 2014 Venezuela imported $36.6b, making it the 60 th largest
importer in the world during the last five years the imports of
Venezuela have decreased at an annualized rate of -1.2%, from
$38.8b in 2009 to $36.6b in 2014. The most recent imports are led
by refined petroleum which represent 8.03% of the total imports of
Venezuela, followed by packaged medicaments, which accounts for
4.68%.

Figure 9 Import origins

Source: From Atlas Media

Imports in Venezuela increased to 9576 USD Million in the third
quarter of 2015 from 8778 USD Million in the second quarter of
2015. Imports in Venezuela averaged 6811.13 USD Million from
1992 until 2015, reaching an all time high of 17841 USD Million in
the fourth quarter of 2012 and a record low of 1970 USD Million in
the third quarter of 1994. Imports in Venezuela are reported by the
Banco Central De Venezuela.
Actual and future forecast
Forecast

Actual

Q3/16

Q4/16

Q1/17

Q2/17

2020

Unit

Imports

9576

9580

10100

10100

10100

13400

USD Million

Venezuela Imports Forecasts are projected using an autoregressive

integrated moving average (ARIMA) model calibrated using our
analysts expectations. We model the past behaviour of Venezuela
Imports using vast amounts of historical data and we adjust the
coefficients of the econometric model by taking into account our

analysts assessments and future expectations. The forecast for Venezuela Imports - was last predicted on Thursday, August 25,
2016.

Figure 10 Import origins

2.4.4 Trade balance

As of 2014 Venezuela had a positive trade balance of $26.3b in net
exports. As compared to their trade balance in 1995 when they still had a
positive trade balance of $2.54b in net exports.
Figure 11 Trade Balance of Venezuela

Source: From Atlas Media

Major Player of Industries with market share

Venezuela, once predominantly an agricultural economy, is known
for its bountiful petroleum wealth. The nation went through
significant

economic

turmoil

during

the

1980s,

when

the

Venezuelan petroleum industry suffered as a result of declining oil

prices. During this period, the nation was burdened with high
inflation and foreign debt, the load of which spilled over to most
of Venezuelas industry sectors. The Venezuelan economy has,
nevertheless, recovered steadily and is still the richest nation in
South America.
Venezuelan Automotive Industry

Source: - http://focus2move.com/venezuela-automotive/
Venezuelan Petrochemical Industry

Source: - http://blogs.platts.com/2016/06/29/latin-americapetrochemical
Venezuela Industry Sectors: Major Players
The Venezuelan industry sectors play a major role in the nations
economy, accounting for employment of about 23% of its 12.67
million labor force. Shown is the percentage share each industry
category. The status of some major players in the Venezuela
industry sector presently is as follows:
Industry name

Share%

Oil

90.6%

Gems, precious metals

2.4%

Organic chemicals

1.5%

Iron and steel

1.1%

Ores, slag, ash

1%

Aluminium

0.7%

Inorganic chemicals

0.6%

Fertilizers

0.4%

Fish

0.2%

Electronic equipment

0.1%

Source: - http://www.tradeineconomics.com/venezuela/

Overview of Chemical and fertilizer industries in

Gujarat
Gujarat is one of the most industrialized state of India, Gujarat
maintain variety of industries, like general and electronically
engineering, textile, fertilizers and chemicals. Major resources
produced

by

the

state

include

manganese,

lignite,

bauxite,

limestone, agate etc.

Gujarats Chemical industries count for more than 35 % of Indian
chemical production. It is one of the most prosperous states, having
a per capita GDP significantly above Indias average .Gujarat
become

leader

in

various

industrial

sectors

like

textile,

engineering, chemical drugs ceramics gems and jewelry etc. Gujarat

state Domestic Product rising at an average growth rate of 14 % per
annum (2002).
Annual growth rate of Gujarat over 10% p.a. over the past five years
and become one of the most industrialized states of India. Gujarat
accounts for 16% of the nation's industrial production and 22% of its
exports
Chemical industry is one of the knowledge driven industry and that
has been growing rapidly at 1.2-1.3 of GDP growth rate 12% over
the last five years. It currently stands at $21.5 billion. Domestic
demand of specialty chemicals is probable to follow an accelerate
growth

path. This

demand is

mostly driven by the strong

development viewpoint for end use industries. This along with

increased acceptance of specialty chemicals and newer applications

can drive the development further.
The

domestic

specialty

chemical

producers

currently

face

challenges related to feedstock accessibility, superior operational

costs, old-fashioned technology/process, limited speculation in R&D
& a off-putting perception amongst end customers. Apart from relay
on regulatory interventions, Indian players should come in concert
and proactively work towards shared investment to avert global
struggle.

Chemical

industry

is

an

investment

as

well

as

knowledge

demanding industry. Global chemical market size was predictable at

$3.6 trillion in 2011 and is likely to grow at 4-5% every year over the
next decade to reach $5.8 trillion by 2021.
India currently knows for only 3.3 % of the total chemical market
with a market size of $ 0.1 trillion in 2011. Indian chemical industry
is also a much diversified industry with more than 70,000
commercial products. It accounted for 13% of the gross value added
by the industry sector. It accounted for 13% of the total India's
export. Indian chemical sector is very critical for the economic
development of country.
Advantage of Gujarat State
Gujarat has grown to be one of the most preferred locations for
industrial

investment

in

India.

Apart

from

having

sound

infrastructure facilities, skilled manpower, excellent domestic and

international connectivity and availability of raw materials, a key
differentiate factor for Gujarat is its focus on industrial development
in the state. It has evolved as an urbanized economy ensuring easy
off-take of industrial output. The figure below lists the map & key
parameters of Gujarat.

Gujarat contributed 24.6% to India's total exports of goods in 201011. Exports include products from sectors such as textiles, petroleum,
chemicals,

pharmaceuticals,

engineering,

gems

and

jewellery,

naphtha, petrol, clinker, cement, oil cakes, bauxite, paraxylene, salt,

soda ash, food grains, cement clinker, ethylene, Pet-cock etc. The total
cargo managed by the Kandla Port (Only Major port of Gujarat) was
82.5 million tones during 2011-12. Gujarat is also the largest exporter of
cotton (60 %) in the country.
The industrial infrastructure of Gujarat is very supportive for business
development. The state's manufacturing industry is supported by 0.34
million MSMEs. Currently, Gujarat has 83 product clusters (refer figure
below). The Cluster Development Scheme has been launched for
furthering the growth of product clusters. Some of the successful
clusters include ceramics cluster at Morbi, brass-parts cluster at
Jamnagar, fish processing cluster at Veraval and power-looms cluster at
Ahmedabad. Gujarat has 184 industrial estates established by the
Gujarat Industrial Development Corporation (GIDC) for specific sectors
such as chemicals, electronics, gems, apparels and granite. The State
Government has taken care to set up industrial estates on nonagricultural

land

after

assessment

of

industrial

viability. Such

availability of product cluster ensures opportunity across the value chain.

The chemical and petrochemical industry in Gujarat is the fastest
growing sector in the state's economy. Gujarat is the 'Petro Capital' of
India, and contributes significantly to the country's petrochemicals
production (62 per cent), chemicals production (51 per cent) and
pharmaceuticals production (35 per cent).Gujarat has truly emerged as
the hub of chemical manufacturing in India. Around 6,600 chemical and
petrochemicals products are produced in the state.
Gujarat houses production facilities for some of the largest global and
Indian chemical and
Petrochemicals manufacturers. Gujarat State Fertilizers & Chemicals Ltd.
(GSFC), Gujarat Alkalis & Chemicals Ltd. (GACL) and Gujarat Narmada

Valley Fertilizers Company Ltd. (GNFC) are the largest public sector units
located in Gujarat. GSFC is the only producer of melamine and largest
producer of caprolactum in India. GACL is the market leader in caustic
soda whereas GNFC is one of the leading fertilizers company in the
country. Apart from these 3 PSUs, a large number of domestic and
multinational companies across various chemical segments have
presence in the state.
Leading Indian and multinational private organizations which have a
footprint in Gujarat are Reliance, ONGC, Dow Chemicals, Cheminova,
Lanxess, India Oil (IOCL), Indian Petrochemical Corporation Limited
(IPCL), Nirma, Essar, BASF, Bayer, Rallis, Novartis, Cadila, Aarti Group
and

Deepak

pharmaceutical

Nitrite.

Gujarat

output

with

accounts
more

than

for

~35%

3200

of

India's

pharmaceutical

companies located in the state. More than 35% of large & medium units
in the state are from chemical industries and chemicals account for ~16%
of employment in the state.
Specialty chemicals in Gujarat
For the growth of any specialty chemicals company two aspects of
value chain are very critical:
i
ii

Need & presence of end consumers

Availability of feedstock

Amongst all states of India, Gujarat is one of the fastest growing

states in terms or urbanization. Its urbanization has increased from
37% to 43% in last decade. As explained earlier, Gujarat accounts
for 5% of total population whereas in terms of urban population its
share is 7% (2% higher than share of overall population). The
demands of these urban users are more towards performance &
high value added products.
This makes Gujarat market a ripe market for consuming specialty
chemical products. One of the key segments of specialty chemical is

agrochemicals. Gujarat as a state faces food security challenge. And

hence the need to increase the yield is quite high. This makes it a
good focus market for agrochemicals. Another example for the site
specific need of Gujarat is for water treatment chemicals. Gujarat is
an industrial state with the water availability already in scarce zone.
This has increased the significance of water conservation & hence
increased the scope of water treatment chemicals.
Being an industrial state the perception of chemical industry is not
so bad in Gujarat. In addition Gujarat govt. has planned effectively
in recent past to ensure environmental safety & communication of
the same to its citizens. The presence of downstream industries is
huge, based on favorable investment policies of govt. in the past.
Gujarat accounts for 10% of the total industries in India. The
entrepreneurial spirit of Gujarat is well acclaimed & hence a lot of
small & medium enterprises could also be found here.
For feedstock availability, Gujarat alone accounts for more than 40%
of the refining capacity in India. And with RIL& OPaL crackers the
availability of raw materials should not be a major concern. However
the challenge for the availability still remains, as the fragmented
structure of specialty chemical producers does not guarantee a
regular off take for crackers. This makes feedstock for specialty
chemical a low priority in their product portfolio.
Apart from these another major hindrance for growth of specialty
chemical is technology. The level of R&D in Gujarat is limited (in
comparison to India it is still better). However going ahead with
many foreign MNCs increasing their presence & govt. promoting
industry academia linkages, Gujarat is likely to overcome this hurdle
also.

Existing Major Payers of Gujarat

1 Reliance Petrochemical Complex

Reliance Industries Limiteds refinery and petrochemical complex is

located as PP (polypropylene) capacity at the Jamnagar site, along
with capacity at another site in Hazira, India.
RPL is the part of RIL which was merged with RIL in 2009 and was
set up to harness value in global refining sector.
petrochemical

complex

saw

major

capacity

The Jamnagar
expansions

in

polypropylene and paraxylene by 2008. This refining plant alone has

a capacity of 27 million tone per year and the PP plant is exported to
30 countries.
Reliance Industries suggested at that time that it would be willing to
spend $2.5 to $3 bn in order to increase its Jamnager petrochemical
complex. Reliance reported that their total sales were Rupees
30,963 crores ($6.6 billion). The multiplier effect is expected to put
the increase at around 6.5% of GDP.
2 Gujarat State Fertilizers and Chemicals Limited
Gujarat

State

Fertilizers

and

Chemicals

Limited

had

been

established in 1962 and have made an exceptional contribution

towards the progress of the Indian fertilizer industry.
Sale of Gujarat State Fertilizers and Chemicals Limited

has

marginally declined by less than 1% to 13.73 Lakh MT during 201415 from that of 13.83 lakh MT achieved in 2013-14. However, this
gap has been bridged by increased volume of domestic trading of
Fertilizers e.g. Urea, SSP & MOP. In spite of below average monsoon
in 2014, contribution of home state of Gujarat (primary market) in
aggregate fertilizer sales of the company has been maintained at
49% (6.76 lakh MT), in line with last year.

Figure name: Chemical and Petrochemical Cluster

Source: Industry Commisionerate Government of Gujarat

3 Gujarat Narmada Valley Fertilisers & Chemicals Limited

Gujarat

Narmada

Valley

Fertilizers

&

Chemicals

Limited

(GNFC), is a joint venture enterprise between the Government of

Gujarat and the Gujarat State Fertilizers & Chemicals Ltd.(GSFC) and
located at Bharuch, Gujarat in 1976. .
GNFC today has extended its profile much beyond fertilizers through
a process of

horizontal integration. Chemicals/Petrochemicals,

Energy Sector, Electronics/Telecommunications and Information

Technology

form

ambitious

and

challenging

additions

to

its

corporate portfolio. GNFC has an enterprising, strategic view

towards expansion and diversification. Gujarat Narmada Valley
Fertilizers & Chemicals Ltd. key Products/Revenue Segments include
Fertilizers which contributed Rs 1383.53 Cr to Sales Value (28.03%

of Total Sales), By-Products & Others which contributed Rs 618.84 Cr

to Sales Value (12.53% of Total Sales)

4 BASF Styrenics Pvt. Limited

BASF SE (Baden Aniline and Soda Factory Societas Europaea) is
the largest chemical producer in the world and is headquartered
in Ludwigshafen, Germany and India's chemical production complex
at Dahej, Gujarat, started in October 2014. They invest $180m
which is biggest investment made by BASF in India. BASF continuing
with the country's GDP registering a growth of 6.5 to 7 per cent for
the next five years.
The polyurethane plant produces BASF's proprietary Elastollan
thermoplastic

polyurethane

(TPU),

Cellasto

microcellular

polyurethane components for automotive NVH (noise, vibration and

harshness) parts, and other polyurethane products applied primarily
in cold and heat-insulation applications. The plant also integrates
production facilities for precursors, such as polyetherols and
polyesterols, and an MDI (methylene diphenyl diisocyanate) splitter,
the first of its kind in South Asia, for processing crude MDI.
5 Gujarat Alkalis and Chemicals Ltd
Gujarat Alkalies and Chemicals Limited (GACL) was found on 29th
March, 1973 in the State of Gujarat by Gujarat Industrial Investment
Corporation

Limited

(GIIC),

which

is

managed

by

Gujarat

government.
GACL is the single largest producer of Caustic Soda in India, with a
production capacity of 1087 TPD. They are certified with ISO
9001:2008,

ISO

14001:2004,

BS

OHSAS

18001:2007,

ISO

50001:2011. Our QHSE En policy reflects our emphasis and

commitments. Net profit of GACL rose 95.11% to Rs 86.26 crore in
the quarter ended June 2016 as against Rs 44.21 crore during the
previous quarter ended June 2015. Sales of GACL was rose 9.06% to

Rs 515.38 crore in the quarter ended June 2016 as against Rs

472.56 crore during the previous quarter ended June 2015. Their
GDP growth rate was rose to 7.5% in 2015-16.
6 Gujarat Chemical Port Terminal Company Ltd
Gujarat Chemical Port Terminal Company Limited (GCPTCL) is
located at Dahej, District Bharuch, Gujarat. This location gives
GCPTCL the leverage of pleasing proximity to the production
facilities

of

oil,

petroleum

products

&

chemicals.

The Port is capable of handling vessels of 6,000 DWT to 60,000 DWT

and the present Storage Terminal capacity is about 300,000 cubic
meters of hazardous liquid & gaseous chemicals falling in 'A', 'B',
and 'General' classes.
The development of the area received a boost when sizeable
reserves of gas and oil were found in the area. Later M/s. IPCL put
up its Gas Cracker complex at Gandhar / Dahej. Over a period, the
idea of developing a Port in Dahej region took shape and Gujarat
Chemical Port Terminal Company Limited (GCPTCL) was conceived.
GCPTCL shown that their sustained growth of GDP over the last few
years was 6.9%.

7 Gujarat Fluorocarbons Ltd

Gujarat Fluorochemicals Limited (GFL) is a part of the $3 billion INOX
Group of Companies. INOX Group is a family owned, professionally
managed business group, with market leadership in diverse
businesses including Industrial Gases, Refrigerants, Chemicals,
Cryogenic Engineering, Renewable Energy and Entertainment.
GFLs Chemical Division combines chemistry and innovation with the
principle of sustainability to address diverse needs of industry. GFL
has a well-established diverse portfolio of chemicals catering to a
broad

range

of

industries.

GFLs chemical complex commenced operations in the year 2007 at

Dahej, Gujarat. In a short span of 6 years, it has grown to become a
highly integrated and technologically advanced chemical complex

which comprises of a 1,10,000 tpa Caustic Soda / Chlorine plant, a

87,500 tpa Chloromethane plant, and combined coal and gas based
captive power plant with a capacity of around 90 MW.
8 Meghmani Chemicals Ltd.
Gujarat Industries Ltd was found in 1986 as a partnership firm in
Gujarat to manufacture pigments. High productivity and profitability
transformed Gujarat Industries to a joint stock company, under the
name of

Meghmani Organics

Limited, by

1995. Since

then

Meghmani Organics Limited has diversified its business interests to

include a range of pesticides and other pigment products as well.
Sound

fundamentals,

outstanding

export

performance,

strong

presence in the domestic market and a focused management team

has seen Meghmani Organics Limited grow at a compounded annual
growth rate (CAGR) of 17% and profits 10% over the past 3 years.
More than 80% of our pigment products and over 50% of our
pesticides products are exported the world over. They have four
multifunctional production facilities in Gujarat (India) of which three
are ISO 9001-2000. Their production facilities are strategically
located with high accessibility and close proximity to source of raw
material.

3 About Chemical And Fertilizer Industries of

Venezuela
1 Chemical Industry
Chemicals are one of the key input materials that are used across
wide ranges of industry and consumer sector. On account of its
wide-ranging application, the chemical manufacturing sector has
emerged as a key economic activity in the country.

2 Chemical industry in Venezuela

Highly intelligent and skilled manpower can perform skilful manual
operation for producing good quality items. The weak point is that
they do not have adequate funds. Entrepreneurs do not know about
collateral free loan providers. The opportunity for doing a business
in Venezuela that is Venezuela government encourages companies
by granting vivid types of concessions. For doing a business in
Venezuela the rules and regulations are strict and most of products
depend upon imported raw materials so large scale disruption may
affect local production.

According to Bolivarian Revolution Venezuela is important to the

United States because it is a major oil supplier and because it is a
relatively close neighbor that is exercising considerable influence
in Latin America, the Caribbean, and beyond.

The US oil companies determined how much oil they would take
and what they would pay. They ran the oil drilling operations and
the export sector. These were four decades in which much of the
prosperity of the United States was achieved by importing raw
materials from South America at bargain basement prices.

Venezuela on the other hand was almost completely dependent

on imported products and technology. In the early 1990s, the

International Monetary Fund (IMF) and the World Bank pressured

Venezuela to accept Washington's 'consensus' on free trade.

The Bolivarian revolution has introduced a string of social

programs and reforms designed to deepen and extend social
democracy. Its agricultural reform is 'based on the premises that
farmers should have control of their land and product, that the
country should produce its own food, and that chemical fertilizers
and pesticides should not be part of agriculture' (Broughton,
2010). Since 2001 the government has expropriated (with
compensation) some three million hectares of land, and has
issued permits to tens of thousands of families to work a total of
two million hectares (2010).

Output of the Venezuelan chemical industry represents 10% of the

countrys total GDP. Products fall into three main sectors: basic
petrochemicals, intermediates and consumer products. Total sales
for 2015 reached $5.9 billion with petrochemicals accounting for
60%. While there are more than 350 chemical companies, just 15 of
them account for 62% of turnover; and 70 companies account for
70% of total sales.

Exports account for 38% of the chemicals

turnover figure, and represent 22% of all Venezuelan non-oil

exports;

82%

of

exports

go

to

North

and

South

America.

Petrochemicals represent 70% of chemical exports, with growth

driven by the availability of raw materials from the countrys oil and
gas industry sector. As of October 2015, 65,720 of 72,524 (90%)
metric tonnes of chemical agent have been verifiably destroyed.
More than 57% (4.97 million) of chemical munitions and containers
have been destroyed.

3 Chemical industry in India

India is the third largest producer of chemicals in Asia and sixth
largest in the world. The global chemical market is valued at around
USD 3.6 trillion. Estimated at a market size of USD 139 billion in FY

2015, the Indian Chemical Industry is expected to grow at 9%

annum to reach USD 2015 billion by 2019. The Indian chemical
sector is one of the strategic industrial sector in the country,
contributing 2.51% of the GDP and 15.95% of the countrys
manufacturing

sector

GDP.

Manufacturing

of

chemical

is

concentrated in several industrial clusters across the country with

those in Gujarat and Maharashtra being the most prominent. Export
from a significant part of the sector and account for 9% of total
value of exports in the country. In chemical industry, it develops
specialized chemical with low capacity plants. In India matured
industry which is understand the specification of foreign buyers.
Skilled human resources are also available. The weak point is that,
that is research and development base is relatively weak. The
opportunities for doing a business in India is special economic zones
and PCPIR (petroleum chemicals & petrochemicals investment
region is also developed. The threats for the chemical industry large
government support are also enjoyed by Chinese companies. The
total production of the Indian chemical industry was 21,308
Thousand Metric Tonnes in 2015-16. The diversification within the
chemical industry is large and covers more than 80,000 commercial
products.

4 Chemical industry in Gujarat

Gujarat exporting chemicals in regions of Europe, North America,
Middle East, Australia, parts of South-East Asia and China. But the
weak point is that many allegations of labour strikes due to
unchanged wage patterns. The opportunities for doing business in
Gujarat is that there is large scale investment in chemical industry
so market share is also expand But the threats for The chlorine
industry is in a decline stage due to alternate chemicals and cheap
resources.

Chemical industries in Gujarat count for more than 35% of Indian

chemical production. It is one of the most prosperous states,
having a per capita GDP significantly above Indias average.
Gujarat established itself as a leader in various industrial sectors
like textile, engineering, chemical drugs ceramics gems and
jewelry etc. Gujarat state Domestic Product rising at an average

growth rate of 14% per annum (2012).

Gujarat has achieved an annual growth rate of over 10% p.a.
over the past five years and is one of the most industrialized
states of India. It accounts for 16% of the nation's industrial

production and 22% of its exports.

By Gregory Wilpert - Caracas, Venezuela, June 27, 2005
Venezuela launched a new state-owned petrochemical company
over the weekend, whose goal is to double Venezuelas
production of petrochemicals in the next six years and to

eliminate Venezuelan dependence on fertilizer imports.

Pequiven, which produced petrochemicals under the auspices of
the state oil company PDVSA, had exported most of its products.
The plan for the new company, though, is to produce PVC,
propylene, fertilizer, and other chemicals, all for Venezuelas
domestic

market.

According

to

the

plan,

petrochemical

production would increase from 11.5 to 25 million tons per year

in the next seven years. Also, the industry should create about
700,000 new jobs during that time, both directly and indirectly.
Many of the jobs would be created because Venezuela would
provide an impulse for the country to build up its own industries

that depends on petrochemicals, such as tires or agriculture.

Venezuelas Pequiven currently produces fertilizer, via a joint
venture with two other companies, but all of this fertilizer is
exported, while the countrys agricultural sector has to import
fertilizer.

5 Fertilizer industry in Venezuela

Producing fertilizers need measuring and calibration equipment

which are expensive if imported. Expertise to develop such
equipment at low cost exists within the country, which if tapped,
may result in significant improvement in quality. But the weak point
is that entrepreneurs do not have adequate funds so they dont
know about loan providers. The opportunities for doing business in
Venezuela are that the customers are not yet conscious about
consumer rights. This is helpful for start-up enterprises.

The

Fertilizer

consumption

(%

of

fertilizer

production)

in

Venezuela was 86.69 in 2015, according to a World Bank report,

published in 2015. Fertilizer consumption measures the quantity
of plant nutrients used per unit of arable land. Fertilizer products
cover nitrogenous, potash, and phosphate fertilizers (including
ground rock phosphate). Traditional nutrients--animal and plant

manures-are not included.

According to Merida, May 28th 2009 to strengthen Venezuela's
agricultural sector, which greatly declined in the second half of
the twentieth century as oil production grew to dominate the
economy, Venezuela's state petrochemical company PEQUIVEN
and Brazil's Brasquem laid out plans to build factories for the
production of ammonia and urea-based fertilizers in Venezuela.
The two governments also signed agreements to help promote
the production of citrus fruits, yucca, and coffee on family farms
in Venezuela. Few other major sectors exist in Venezuela like
Energy Sector, Oil and Mining Sector, Agriculture Sector, Forestry

and Fishing Sector and Banking Sector.

Venezuela became an important source of oil for India over the
past decade, when India increased its global share to become the
worlds

third-largest

oil

importer,

after

the

U.S. and

China. Diversifying its import sources became important in the

wake of the Arab uprisings, because West Asia is Indias primary
source of oil. When U.S. production of domestic shale oil
increased, it cut its oil imports from Venezuela by 49%, providing

an opportunity for India to step in. These market-driven factors

are the primary reason for Indias increasing oil imports from
Venezuela. They are unlikely to change in the long or mediumterm, regardless of any change in government or policies in
Venezuela. Venezuela is still a significant global oil player, with
the worlds largest proven reserves of oil 299 billion barrels. Oil
accounted for 95% of the countrys exports in 2014.
Industries Venoco, C.A. has the capacity to produce 10,000
metric tons of grease lubricants and 90,000 metric tons of oil
lubricants per year. This accounts for 85% of the grease market
and 16% of the oil lubricant market, according to the state news
agency AVN. The company also produces chemical additives used
for asphalt, industrial and agricultural machinery, and industrial
cleaning agents. The Venezuelan company was founded in 1958
and over the years signed joint ownership contracts with private
sector companies such as Mobil and the state-owned chemical
firm Pequiven.
Fertilizantes Nitrogenados de Oriente (Fertinitro) is jointly owned by
Pequiven (34.99%), the US-based Koch Industries, Inc. (34.99%),
and Italian-owned Snamprogetti (19.99%), and produces ammonium
and urea fertilizers. According to AVN, it is the countrys largest
fertilizer producer and it produces 1.5 million tons of urea per year.

Venezuela is mostly produced petrochemical from their resources

but if they produce some chemical and fertilizer from the
wastage of petrochemical then thats help to reducing the import
from the other countries.

According to Michael Fox from their news Venezuelas State Oil

Co.
with

Forms

Joint

Venture

Nicaraguan

Mayors

Caracas, Venezuela, April

26, 2006The Venezuelan state oil company PDVSA signed

agreements with 153 Nicaraguan mayors yesterday in Caracas,

forming the joint venture Alba Petioles de Nicaragua, which will
sell Venezuelan crude to the Central American country at
preferential rates. Meanwhile, in seemingly unrelated news, the
Nicaraguan government expressed concern over a shipment of
10,000 tons of Urea (fertilizer).
FertiNitro (Fertilizantes Nitrogenados de Oriente) is Venezuela's
largest fertilizer company, producing around 1.5m tons of urea per
year. It was nationalised in October 2010, having previously been
owned

by Pequiven (35%)

and Koch

Industries (35%). The

nationalization meant a substantial windfall for holders of FertiNitro

corporate bonds, with the government offering 105 cents on the
dollar.
FertiNitro is one of the world's main producers of nitrogen fertilizer,
with daily production capacity of 3,600 tonnes of ammonia and
4,400 tonnes of urea.
In 2013, Venezuelas environmental ministry sponsored 10 SADR
technicians to travel to Venezuela and undertake advanced training
in hydrogeology and drilling. The Venezuelan government described
the initiative as strike a blow to the neoliberal policies of
imperialism, stating the technicians could use their training to
improve SADRs access to underground reservoirs in the Sahara for
improving the production of fertilizer and chemicals
Venezuela.

6 Fertilizer industry in India

in the

India is the third largest producer and consumer of Fertilizer in the

world. The private sector produced 48.73% of nitrogenous fertilizer
and 68.08% of phosphate fertilizer in 2015-2016. Total production of
fertilizer in India is around 35%.

The Indian fertilizer plants have adopted diverse technologies

supplied by various renowned licensers. Indian fertilizer industry
is bench marked as one of the best in the world in terms of
operational efficiency, energy consumption, maintenance of
safety and environmental standards. But the weak point is that
imported raw materials are available in the hands of few
suppliers so sourcing them is a big challenge for Indian fertilizer
industry. An opportunity for doing business in India that is It is a
financially credible market. There are lots of opportunities to
invest in Indian fertilizer sector.

7 Fertilizer industry in Gujarat

Fertilizers price is cheap as compare to chemicals. The opportunity
is that government is supporting to start the fertilizer unit.
Competitors are also less in the market so it is a big opportunities
for producers.

With respect to Gujarat also there are many companies in the

Gujarat who produced only Fertilizer and Chemical. In the total
GDP of India, 35% part represented from the Gujarat industries
and from that approx 15% part is from the Chemical and Fertilizer
industries. So that part also represents that that Gujarat also
exporting the chemical and fertilizer to the Venezuela.

Bilateral Trade Opportunity with respect to India

and Gujarat
The main items of Indias exports are metal and metal products,
pharmaceuticals, chemicals, textiles, calcined petroleum coke (CPC),

engineering products such as scooters, equipment and machinery.

The Indian pharma industry has already made a mark and some
reputed companies (Sun Pharma, Dr. Reddys, Glenmark, Claris,
Cipla) are operating in Venezuela.
The bilateral trade figures for the past four years are as below:
Bilateral trade figures of Venezuela and India
(In million US$)
2011
Indias Exports to 306.448
Venezuela

(non-oil)

to

2013

2014

2014-

355.365

352.72

245.60

15
258.07

33.60

60.75

(CIF

US$)
Venezuelas
Exports

2012

0
3.743

4.162

2.907

India
(FOB

US$)

Indias oil Imports from Venezuela

2011-

2012-

2013-

2014-

2015-

12

13

14

15

16
(Apr-

Indias
Imports

oil 6653.1
from 2

14105.

13936.

11669.

Sep)
2808.5

91

59

14

Venezuela
(Source: Venezuelan National Institute of Statistics & Export-Import
Data Bank, Ministry of Commerce & Industry, Government of India.)

OVL and CVP (subsidiary of PDVSA) have a Joint Venture called

Petrolera IndoVenezolana SA for production and exploration of
oil in the San Cristobal field in which OVL has a 40% stake while
PDVSA has the remaining 60% share. OVLs investment in the
San Cristobal project is around US$ 200 million. An international

consortium comprising of ONGC Videsh Limited (OVL), Indian Oil

Corporation (IOC), Oil India Ltd. (OIL), Repsol of Spain and
Petronas

of

Malaysia

were

declared

the

winners

of

an

international bidding process to develop a multibillion dollar

integrated onshore Carabobo oil project in the Orinoco belt of
Venezuela. The "First Oil" from PetroCarabobo S.A. Project was
produced on 27 December 2012.

The main items of Indias imports from Venezuela are crude oil,
iron and steel, ores, slugs and ash, aluminum and articles thereof
India has a good opportunity to export Chemicals and Fertilizer to
Venezuela because Venezuela only produce 10% chemical and
20% fertilizer approx in their country and they imported more
from the other country so on the basis of that India has a good
opportunity
Venezuela.

to

export

the

chemical

and

fertilizer

to

the

Commodities Imported-Exported by Venezuela and

India
Description Venezuelas

Inorganic

from India
2012 2013
0.77

Import Indias

Exports

to

Venezuela
201
2013

0.46

Growth
-40.45

2
0.00

0.00

Growth
-57.89

0.86

0.59

-30.93

0.01

0.01

-7.56

3.49

3.21

-8.09

0.09

0.11

11.63

2.30

1.39

-39.42

0.03

0.03

1.94

Chemicals,
Precious
Metal
Compound
s, Isotopes
Miscellane
ous
Chemical
Products
Pharmaceu
tical
Products
Organic
Chemicals
(http://www.indiantradeportal.in/vs.jsp?
lang=1=0,25,45,858,913,988)

Recently, India-Venezuela relations have moved a notch beyond

quotidian oil transactions. Companies like state-owned ONGC
Videsh, Indian Oil Corporation and Oil India have invested in
Venezuelas Carabobo and San Cristobal oil fields, where oil is
already being produced and exported to India and other markets.
Reliance Industries has also signed a 15-year contract with
PDVSA, Venezuelans State Oil Company, to import 400,000

barrels of oil per day.

India's country run ONGC Videsh Limited oil and gas exploration
and Production Company helped certify heavy oil reserves in the

Orinoco river belt. In the year 2010, a consortium led by Indian

state-owned oil companies also won a global bid to claim 40%
stake in an important oil block in Venezuela, giving India the
capability of producing 400,000 barrels of crude oil per day in its

peak time.
India's pharmaceutical

major,

Cipla

has

170

medications

approved to market in Venezuela, and made nearly $25 million in

revenue the year 2015.
Most Indian trade and investment with Venezuela is done by private
Indian companies. Indian exports to the region are not a threat to
Venezuela industries. Over half of them consist of raw materials and
intermediate goods such as bulk drugs, yarn, fabrics, and parts for
machinery and equipment, which can Venezuela industries, cut
production costs and become globally competitive. Indian IT and
business process outsourcing companies are propelling Venezuela
into the information age and training human resources for the
knowledge

economy.

destination

for

Bangalore

Venezuela

has

become

delegations

visiting

mandatory
the

Indian

subcontinent.

Venezuela is India's largest trading partner in Latin America and

supplies crude oil to India. The volume of bilateral trade between

the two countries was $ 14.35 billion in 2012-13.

"The entire gamuts of bilateral relations besides various regional
and multilateral issues were discussed in the meeting," Khurshid

told reporters.
India's exports to the country include chemicals, textiles and
engineering

products

such

as

scooters,

equipment

and

machinery. The Indian pharma industry has a significant presence

in the country.
The main items of India's imports from Venezuela are crude oil,

iron pellets and electrical cables.

ONGC Videsh Limited, Indian Oil Corporation and Oil India Ltd are
part of the $ 20 billion Carabobo oil project in the Orinoco belt of

Venezuela. The project is aimed at producing 400,000 barrels per

day of oil (20 million tonnes) in four years.

The Reliance Industries Ltd gets about 20 per cent of its oil needs
from Venezuela. RIL currently imports about 300,000 bpd of oil
from Venezuela for processing at its twin refineries at Jamangar
in Gujarat.

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