June 2023
Newsletter feature by UAE-India Business Council
INTRODUCTION TO BOROUGE
Borouge is a leading petrochemical company that provides innovative and differentiated polyolefin solutions for the energy, infrastructure, mobility, advanced packaging, healthcare and agriculture industries. Listed on the Abu Dhabi Securities Exchange, it is jointly owned by Abu Dhabi National Oil Company (ADNOC) and Austria's Borealis.
Based in Abu Dhabi, UAE with a Sales and Marketing headquarter in Singapore, Borouge serves customers in over 50 countries across Asia, the Middle East and Africa. It operates one of the world’s largest integrated polyolefin complexes in Al Ruwais, UAE, and also has an Innovation Centre in Abu Dhabi, a Compounding Manufacturing Plant and an Application Centre in Shanghai, supporting customers to develop innovative solutions that bring value to all players in the value chains, including manufacturers, converters, and end-users.
Borouge was recently recognised for its achievements on a global scale with its inclusion in the prestigious
Forbes Global 2000 list as one of the largest companies globally, based on its performance in terms of sales, profits, assets, and market value, solidifying Borouge’s strong position in the market.
The increased visibility and credibility that comes with the global ranking also opens up opportunities for collaboration in trade and commerce between the UAE and global markets, including India.
BOROUGE’S JOURNEY IN INDIA
Borouge has been established in India and the ISC region for 25 years. India, with its favourable demographics and economic growth prospects, is one of the most attractive polyolefin markets in the world. The country has been an important and strategic market for Borouge since the commencement of operations of the “Borouge 1” polyethylene plant in 2001 in the UAE. The company has since grown through the “Borouge 2”, “Borouge 3”, and the fifth polypropylene unit (“PP5”) expansions, where India continues to be instrumental to the company’s growth journey. From inception, many partnerships with polyolefin converters in India have been established, and many Indian nationals have contributed to shaping Borouge into a leading international business.
Borouge also serves many industrial sectors in India. Since commencing operations, Borouge has been supplying its proprietary PE100 pipe products to partners in India. PE100 pipe has become the benchmark of high-quality pressure pipes in India and throughout the world.
Borouge is also committed to developing the agriculture business in India through sustainable solutions for India’s farming community, where agriculture is the primary source of income for majority of the population. One successful project was the completion of 900 greenhouses in Jaipur, Rajasthan State as of late 2022, in a collaboration with value chain partners. Borouge provided materials for over 90% of the films used in the greenhouses, which has enabled precision farming to improve productivity, and hence the livelihoods of the Jaipur farmers. Plans underway to scale up operations with support from government authorities and local communities to expand the reach of farmers and coverage areas in India.
OPPORTUNITIES FOR GROWTH AND COLLABORATION
Borouge’s advanced polyolefin solutions contribute to India’s national development initiatives and priorities, such as food safety, energy security, water management, power reliability and crop efficiency to meet the needs of a rapidly growing population. On the back of the economic growth expected in India, Borouge aims to continue growing its business in the country in the coming years, which will strengthen access of local Indian converters to advanced materials and technologies, supporting India’s growth initiatives. The benefit to India includes high quality raw materials imports, resulting in enhanced domestic production capabilities, further enabling export opportunities.
The successful start of Borouge’s PP5 plant early last year was a key milestone in its 2030 growth strategy. Borouge is well-positioned to capture any recovery in the region, given the ramp up of PP5, planned growth of Borouge 4 and its access to and ability to optimise feedstock sourcing.
Borouge's ranking in the Forbes Global 2000 list is testament to its position as a leading petrochemical company globally. Borouge will continue enhancing its relationships with global partners, and the ongoing capacity expansions will put Borouge in a strong competitive position to serve the ISC region, given the proximity between the UAE and India.
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