|
Forecast
Period
|
2026-2030
|
|
Market
Size (2024)
|
311.82 thousand Metric Tonnes
|
|
CAGR
(2025-2030)
|
3.52%
|
|
Fastest
Growing Segment
|
Healthcare
|
|
Largest
Market
|
West
India
|
|
Market
Size (2030)
|
382.97 thousand Metric Tonnes
|
Market Overview
India Ethylene Oxide Market
achieved a total market volume of 311.82 thousand Metric Tonnes in 2024 and is
poised for strong growth in the forecast period to reach 382.97 thousand Metric Tonnes in 2030, with a projected Compound
Annual Growth Rate (CAGR) of 3.52% through 2030.
Ethylene oxide (EO) is a vital chemical compound
that finds extensive use in various industries, from petrochemicals to
healthcare. India, one of the world's fastest-growing economies, plays a
significant role in the global EO market. Ethylene oxide is a fundamental building block in
the production of numerous petrochemicals, including ethylene glycol, non-ionic
surfactants, and ethanol amines. As India's petrochemical sector continues to
expand, the demand for ethylene oxide rises. PEG, a polymer derived from ethylene oxide, is a
versatile compound used in various applications, including pharmaceuticals,
cosmetics, and personal care products. As the demand for such products grows,
so does the demand for ethylene oxide. Ethylene
glycol, which is produced from ethylene oxide, is a key component in antifreeze
and engine coolant formulations. As the automotive industry expands, so does
the demand for these products. Ethylene oxide is widely used for sterilizing
medical equipment, pharmaceuticals, and food products. With the healthcare and
pharmaceutical sectors witnessing substantial growth, the need for EO in
sterilization processes has surged.
Ethylene oxide plays a role in the production of
certain agrochemicals, including herbicides and insecticides. As agriculture
remains a significant sector in India, the agrochemical industry contributes to
EO demand. The supply of ethylene oxide in India is met
through a combination of domestic production and imports. Indian companies like
Reliance Industries, Tata Chemicals, and Indian Oil Corporation are pivotal in
the production of ethylene oxide. These manufacturers have expanded their
capacities to meet the rising demand. India also imports ethylene oxide, primarily from
countries like the United States, Saudi Arabia, and China. These imports are
often sought to supplement domestic supply or meet specific industry
requirements. Ethylene oxide production, handling, and usage are
subject to stringent regulations and standards set forth by various government
agencies in India, including the Central Pollution Control Board (CPCB) and the
Ministry of Environment, Forest and Climate Change. These regulations ensure
the safety, quality, and environmental standards are met.
Given the potential environmental and health
implications of ethylene oxide, manufacturers are required to adhere to strict
guidelines to minimize ecological and health risks associated with its
production and application. The competitive landscape of the Indian ethylene
oxide market features both domestic and international players. Domestic
manufacturers have a substantial presence, benefiting from their knowledge of
local market dynamics, regulatory compliance, and established supply chains.
International companies, particularly from the
United States and the Middle East, also participate in the Indian market. They
either export ethylene oxide directly or collaborate with local distributors.
This competitive environment ensures product availability, quality maintenance,
and technological advancements. Ethylene oxide is a hazardous chemical due to its
flammability and potential health and environmental risks. Ensuring safe
handling and disposal is a critical challenge. Ethylene oxide production
depends on the availability and cost of ethylene, which can be influenced by
global oil and gas dynamics. Meeting stringent environmental and safety
regulations can be challenging and often necessitates substantial investments
in safety measures. Ethylene oxide is a crucial precursor for a variety
of products. There's potential for innovation and the development of more
sustainable and safer processes. India has
the potential to enhance its export capabilities in EO derivatives, given the
country's domestic production and expertise in downstream products. With the
growth of the healthcare and pharmaceutical sectors, the demand for EO in
sterilization processes and pharmaceuticals presents substantial opportunities. tH the ethylene oxide market in India
is multifaceted, with applications spanning petrochemicals, healthcare,
agriculture, and more. As the country's industrial and healthcare sectors
continue to grow, ethylene oxide will remain a key ingredient in various
processes and products. While the market faces challenges related to safety,
environmental impact, and regulatory compliance, opportunities lie in research
and development, import-export balance, and the evolving demands of the
healthcare and pharmaceutical industries. As India strengthens its position as
a global industrial and healthcare hub, the role of ethylene oxide will remain
integral in its journey.
Key Market Drivers
Growing Demand from Petrochemical Industry Propels
Indian Ethylene Oxide Market Growth
The Indian ethylene oxide market is currently
experiencing significant growth, largely propelled by the increasing demand
from the petrochemical industry. Ethylene oxide, a key chemical compound
derived from petrochemical feedstocks, has become an essential component in
various industrial processes, including the production of ethylene glycol,
surfactants, and other chemicals. As India's petrochemical sector continues to
expand and evolve, the demand for ethylene oxide is on the rise, providing the
industry with a vital raw material for diverse applications.
Ethylene oxide is a versatile chemical with a wide
range of applications, but one of its primary uses is in the production of
ethylene glycol. Ethylene glycol is a crucial ingredient in the manufacturing
of antifreeze, coolants, and polyester fibers. As the automotive and textile
industries in India continue to grow, the demand for ethylene glycol is
surging, which, in turn, drives the demand for ethylene oxide. In addition to ethylene glycol, ethylene oxide is
used in the production of surfactants, which are essential in the formulation
of various consumer and industrial products. Surfactants play a critical role
in the petrochemical industry as they are used in detergents, cleaning agents,
emulsifiers, and other products. The rise in consumer demand for cleaning and
personal care products, as well as industrial applications, fuels the need for
ethylene oxide for surfactant production.
The petrochemical industry in India has been
steadily growing, with investments in expanding production capacities and
enhancing chemical formulations. As ethylene oxide is a key feedstock for
various downstream products, ensuring a steady supply of high-quality ethylene
oxide is crucial for manufacturers in the petrochemical sector. This consistent
supply of ethylene oxide enables them to meet the growing needs of diverse
consumer and industrial markets. The focus on sustainability and
eco-friendliness in the petrochemical industry aligns with the use of ethylene
oxide. Modern production processes have evolved to become more environmentally
responsible, with a focus on reducing waste and emissions. Ethylene oxide can
be produced using greener technologies, reducing environmental impact and
making it an eco-friendly choice for various applications in the petrochemical
industry.
The rise of eco-conscious consumers who demand
sustainable products has also driven the growth of ethylene oxide. Businesses
in the petrochemical industry are responding to these demands by incorporating
sustainable and eco-friendly materials into their production processes to offer
products that align with both environmental and consumer expectations. The growing demand from the
petrochemical industry is propelling the growth of the ethylene oxide market in
India. As the petrochemical sector in the country continues to expand, ethylene
oxide plays a vital role in supporting the production of ethylene glycol,
surfactants, and other downstream products, which cater to the needs of various
industries and consumers. The versatility, performance characteristics, and
sustainability of ethylene oxide make it a fundamental raw material in India's petrochemical
sector, supporting the creation of eco-friendly, consumer-oriented, and
industrial products that align with both environmental and industry standards.
This growth not only advances the petrochemical industry but also strengthens
India's position as a hub for sustainable and diverse chemical production.
Rising Demand from Healthcare Sector used for
Sterilizing Propels India's Ethylene Oxide Market Growth
The Indian ethylene oxide market is experiencing
significant growth, largely propelled by the increasing demand from the
healthcare sector, where it is primarily used for sterilization purposes.
Ethylene oxide, a versatile chemical compound, is known for its effectiveness
in sterilizing medical equipment and supplies. As the healthcare sector in
India continues to expand and prioritize safety and hygiene, the demand for
ethylene oxide is on the rise, providing a critical solution for medical
sterilization.
Sterilization is a crucial process in the
healthcare industry to ensure the safety of patients and the efficacy of
medical equipment and instruments. Ethylene oxide, due to its unique
properties, is widely employed for this purpose. It is capable of penetrating
various materials and effectively killing microorganisms, making it a reliable
choice for sterilizing a wide range of medical devices, including surgical
instruments, syringes, catheters, and more. The healthcare sector in India has been growing,
driven by factors such as increasing healthcare awareness, advancements in
medical technology, and a rapidly expanding population. As the healthcare
industry evolves, the need for high-quality sterilization methods becomes more
pronounced. Ethylene oxide plays a vital role in maintaining the safety and
sterility of medical equipment, thus contributing to the overall quality of
healthcare services.
The rise in the number of hospitals, clinics, and
healthcare facilities in India has further spurred the demand for ethylene
oxide for sterilization purposes. Ensuring that medical instruments and
supplies are free from harmful microorganisms is paramount for preventing
infections and maintaining patient safety. Ethylene oxide's reliability in
achieving this sterilization goal is a key factor in its increasing use in the
healthcare sector. The demand for ethylene oxide from the healthcare
sector has prompted investments in expanding production capacities and ensuring
the quality and consistency of the chemical. Maintaining a steady supply of
high-quality ethylene oxide is essential for manufacturers serving the
healthcare industry, as they rely on this chemical to provide safe and sterile
medical equipment and supplies.
The emphasis on sustainability and
eco-friendliness in the healthcare industry aligns with the use of ethylene
oxide. Modern healthcare facilities have become increasingly environmentally
conscious, and the need for eco-friendly sterilization methods is growing.
Ethylene oxide can be produced using greener technologies, reducing its
environmental impact and making it an eco-friendly choice for sterilization in
the healthcare sector. The rise of eco-conscious consumers and healthcare
providers who demand sustainable and safe healthcare practices has also driven
the growth of ethylene oxide. Hospitals and healthcare facilities are
responding to these demands by incorporating sustainable and eco-friendly
sterilization methods, including the use of ethylene oxide, to ensure the
safety and well-being of patients while minimizing their environmental
footprint.
Hence, the rising demand from the
healthcare sector for sterilization purposes is propelling the growth of the
ethylene oxide market in India. As the healthcare industry continues to expand,
ethylene oxide plays a vital role in ensuring the safety and hygiene of medical
equipment and supplies. Its effectiveness, reliability, and potential for
eco-friendly production make it an indispensable component in India's
healthcare sector, supporting the provision of safe and sustainable healthcare
services. This growth not only advances the healthcare industry but also
strengthens India's position as a hub for safe and eco-friendly medical
practices.
Growing Demand for Production of Various Argo
Chemical is Propelling the India Ethylene Oxide Market Growth
The Indian ethylene oxide market is experiencing
substantial growth, primarily driven by the increasing demand to produce
various agricultural chemicals. Ethylene oxide, a versatile chemical compound,
serves as a critical raw material for the synthesis of a wide range of
agrochemicals, including pesticides, herbicides, and insecticides. As India's
agricultural sector continues to expand and modernize, the demand for ethylene
oxide is surging, providing the industry with an essential resource for addressing
crop protection and improving agricultural productivity.
Ethylene oxide is a key ingredient in the
production of agrochemicals, particularly for pesticides. Pesticides are
crucial for safeguarding crops from pests, diseases, and other threats that can
compromise agricultural yields. Ethylene oxide plays a significant role in the
synthesis of active ingredients in pesticides, enabling manufacturers to
produce effective and reliable products for farmers. The agricultural sector in India is a vital
component of the country's economy, providing food security and livelihoods for
a substantial portion of the population. With a growing population and
increasing food demand, the pressure on the agricultural industry to enhance
crop yields and protect harvests has never been greater. As a result, the
demand for agrochemicals has risen significantly, which, in turn, drives the
demand for ethylene oxide as a key component.
Herbicides, another category of
agrochemicals, are used to control unwanted vegetation and weeds in
agricultural fields. Ethylene oxide is employed in the production of various
herbicides that contribute to improving the efficiency of farming operations and
ensuring healthier crop growth. The demand for ethylene oxide from the agricultural
sector has led to investments in expanding production capacities and enhancing
the quality and consistency of the chemical. A reliable and consistent supply
of high-quality ethylene oxide is essential for agrochemical manufacturers, as
they rely on this raw material to produce effective and safe solutions for crop
protection. Additionally, the emphasis on sustainability and
eco-friendliness in the agriculture sector aligns with the use of ethylene
oxide. Modern farming practices have evolved to become more environmentally
responsible, with a focus on reducing the environmental impact of
agrochemicals. Ethylene oxide can be produced using greener technologies,
minimizing waste and emissions during its manufacturing process, thus aligning
with the sustainability goals of the agriculture industry. The rise of eco-conscious farmers and consumers who
demand sustainable and safe farming practices has also driven the growth of
ethylene oxide. Agrochemical manufacturers and farmers are responding to these
demands by incorporating eco-friendly and safe materials, including ethylene
oxide, into their agricultural practices. This ensures the protection of crops
and the environment, making agriculture more sustainable.
The growing demand for the
production of various agrochemicals is propelling the growth of the ethylene
oxide market in India. As the agricultural sector in the country continues to
expand and modernize, ethylene oxide plays a vital role in supporting the
production of effective pesticides, herbicides, and other agrochemicals that
protect crops, enhance agricultural productivity, and align with the
sustainability goals of the industry. The versatility, effectiveness, and
potential for eco-friendly production of ethylene oxide make it an
indispensable resource in India's agricultural sector, contributing to food
security and sustainable farming practices. This growth not only advances the
agriculture industry but also strengthens India's position as a hub for
effective and environmentally responsible crop protection.
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Key Market Challenges
Safety and Environmental Concerns
Safety and environmental concerns are becoming significant
obstacles to the growth of the Ethylene Oxide market in India. Ethylene Oxide
is a crucial chemical compound used in various industries, including
pharmaceuticals, agrochemicals, and as a sterilizing agent in healthcare.
However, its production and handling involve inherent safety risks, as it is
flammable and potentially toxic, and the production process can lead to the
formation of carcinogenic by-products.
Stringent regulations and increasing environmental
awareness have led to growing concerns regarding the safe storage,
transportation, and disposal of Ethylene Oxide. This has resulted in the
imposition of stricter safety standards and emissions controls, making it more
challenging for businesses to operate and expand in the Indian market.
To address these challenges and foster growth,
stakeholders in the India Ethylene Oxide market should invest in safer
production technologies, enhance safety protocols, and adhere to rigorous
environmental standards. Collaboration with regulatory authorities to ensure
compliance and promote the responsible handling of Ethylene Oxide is essential
for the long-term growth of the market while addressing safety and
environmental concerns.
Raw Material Availability and Costs
Raw material availability and costs are substantial
hindrances to the growth of the Ethylene Oxide market in India. Ethylene Oxide
is primarily produced through the ethylene oxidation process, which heavily
relies on the availability and pricing of ethylene, a key feedstock.
Fluctuations in ethylene prices can directly impact the production costs of
Ethylene Oxide, creating uncertainties for manufacturers.
Moreover, the availability of ethylene can be
influenced by factors such as regional supply and demand imbalances and
changing energy market dynamics, which can lead to market volatility. This
scenario challenges the consistency of Ethylene Oxide production and affects
pricing stability in the market.
To overcome these challenges and stimulate growth
in the India Ethylene Oxide market, stakeholders should consider strategies
such as diversifying sourcing options for ethylene, long-term supply
agreements, and inventory management. By stabilizing raw material costs and
ensuring a reliable supply of ethylene, the market can improve its
competitiveness and create opportunities for sustained growth.
Key Market Trends
Research and Development Efforts are Focused on
Producing Ethylene Oxide from Renewable and Bio-based Sources
The India Ethylene Oxide market is currently
undergoing a significant transformation, with a crucial trend focusing on
research and development efforts geared towards producing Ethylene Oxide from
renewable and bio-based sources. Ethylene Oxide, a versatile chemical compound
used in various industries, has historically been derived from petrochemical
feedstocks. However, the shift towards sustainable and eco-friendly
manufacturing is driving the exploration of alternative, renewable sources for
Ethylene Oxide, with several compelling factors contributing to this trend.
One of the primary drivers of this trend is the
growing concern for environmental sustainability. The chemical industry,
including the production of Ethylene Oxide, has been a substantial contributor
to greenhouse gas emissions and fossil fuel consumption. By exploring bio-based
and renewable sources, researchers aim to reduce the carbon footprint
associated with Ethylene Oxide production and create more environmentally
responsible manufacturing processes. The increasing emphasis on resource
efficiency and circular economy principles is fostering this trend. Utilizing
bio-based feedstocks, such as agricultural and forestry residues, algae, or
other biomass sources, aligns with the goals of waste reduction, resource
optimization, and sustainability. These sources offer an opportunity to reduce
waste and provide valuable feedstock for Ethylene Oxide production.
The India Ethylene Oxide market is
recognizing the potential market advantages of bio-based Ethylene Oxide
derivatives, which are sought after in various industries such as
pharmaceuticals, personal care, and textiles. The availability of these
eco-friendly derivatives further supports the shift towards renewable sources
for Ethylene Oxide. The growing focus on research and
development efforts directed at producing Ethylene Oxide from renewable and
bio-based sources is a key driver for the growth of the India Ethylene Oxide
market. As sustainability and eco-friendliness become paramount considerations
in chemical manufacturing, the exploration of alternative sources for Ethylene
Oxide reflects India's commitment to responsible and environmentally conscious
practices, fostering the expansion of the market and positioning the nation as
a progressive player in the global chemical industry.
Increasingly Focusing on the Development of
Specialized Ethylene Oxide Derivatives Tailored to Specific Industrial
Applications
The India Ethylene Oxide market is experiencing
significant growth, with a pivotal trend being the increasing focus on the
development of specialized Ethylene Oxide derivatives tailored to specific
industrial applications. Ethylene Oxide is a versatile chemical compound widely
used in the production of various derivatives, including glycols, surfactants,
and ethoxylates. The surge in demand for specialized derivatives customized for
distinct industrial applications is driven by several notable factors and is
contributing to the expansion of the Ethylene Oxide market.
One of the primary drivers of this trend is the demand
for tailored solutions across industries. Ethylene Oxide derivatives are
critical components in sectors such as pharmaceuticals, textiles, personal
care, and agrochemicals. These industries require specialized products with
specific chemical properties to meet their unique needs, and manufacturers are
increasingly focusing on customizing Ethylene Oxide derivatives to provide
targeted solutions. Environmental and safety considerations
are playing a significant role in this trend. Ethylene Oxide derivatives can
have varying toxicity levels and environmental impacts, and the development of
specialized derivatives allows manufacturers to create products that are safer
and more eco-friendly. Customization also enables industries to adhere to
stringent regulatory requirements and meet sustainability goals. The competitive nature of the global
chemical industry necessitates innovative approaches. Developing tailored
Ethylene Oxide derivatives for specific applications enhances product
differentiation, allowing manufacturers to meet the evolving demands of
consumers and industrial clients. It also positions India as a competitive
player in the global chemical market by offering a diverse range of specialized
solutions.
Thus, the increasing focus on the
development of specialized Ethylene Oxide derivatives tailored to specific
industrial applications is a key driver for the growth of the India Ethylene
Oxide market. As industries continue to seek customized solutions that address
their unique requirements, the emphasis on tailored derivatives contributes to
the expansion of the market and reinforces India's position as a dynamic player
in the global chemical industry.
Segmental Insights
Derivatives Insights
Based on the derivatives, the ethylene glycol
segment emerged as the dominant player in the Indian market for Ethylene Oxide
in 2024, primarily due to its extensive use in various industrial applications,
particularly in the automotive and textile sectors, as well as the presence of
a robust manufacturing infrastructure for ethylene glycol and its derivatives
in the country. Ethylene glycol is one of the primary derivatives
of Ethylene Oxide and is widely used in various industrial applications. It is
a crucial component in the production of antifreeze, coolants, and as a raw
material for the manufacture of polyester fibers and resins. The demand for
these products has led to a steady and significant consumption of ethylene
glycol, making it a dominant player in the Ethylene Oxide market. The automotive industry in India relies
on ethylene glycol-based antifreeze and coolants to maintain the efficient
operation of vehicles, especially in regions with varying climate conditions.
The automotive sector is a major consumer of ethylene glycol, contributing to
its prominence as a derivative of Ethylene Oxide.
Moreover, the textile industry in India uses
ethylene glycol for the production of polyester fibers, which are extensively
used in textiles and garments. As the textile industry is a significant part of
India's manufacturing sector, the demand for ethylene glycol in this
application further solidifies its position in the market. The production of ethylene glycol and
its derivatives in India is supported by a well-developed petrochemical and
chemical manufacturing infrastructure, which ensures a consistent supply of
this important chemical.
End Use Insights
Based on the end use, the chemical processing
segment is projected to experience rapid growth during the forecast period.
This growth is attributed to the compound's versatile applications in chemical
manufacturing, the diverse and expansive chemical industry in India, and the
need for a reliable supply of high-purity Ethylene Oxide to meet the stringent
requirements of chemical processing.
Ethylene Oxide is a versatile chemical with a wide
range of applications in chemical processing. It is used as a raw material for
the production of various chemicals, including ethylene glycol, surfactants,
glycol ethers, and ethanol amines. The chemical processing industry relies on
Ethylene Oxide as a fundamental building block for these products, which are
essential in various manufacturing and industrial processes. The chemical processing segment often
requires a steady and reliable supply of Ethylene Oxide to meet the demands of
different chemical manufacturing processes. Ethylene Oxide's use in producing
numerous chemical derivatives means that the chemical processing industry is a
major consumer of this compound.
The chemical industry in India is diverse
and expansive, encompassing sectors such as petrochemicals, specialty
chemicals, and agrochemicals. Many of these industries require Ethylene Oxide
for the synthesis of specific compounds, making it a crucial component in
chemical manufacturing. The chemical processing segment is
focused on quality and consistency, and Ethylene Oxide is known for its role in
producing high-purity chemicals. This aligns with the stringent quality
standards and demands of the chemical industry.
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Regional Insights
Based on the region, the dominance of the West
region in the Indian Ethylene Oxide market can be attributed to its strong
chemical and petrochemical presence, well-developed logistics, proximity to key
manufacturing clusters, and availability of technical support and specialized
services. These factors have collectively positioned the West region as a
dominant player in the Ethylene Oxide market.
The West region of India, which includes states
like Gujarat and Maharashtra, is a significant hub for the chemical and
petrochemical industry. This region is home to numerous industrial complexes,
chemical manufacturing facilities, and refineries. The chemical sector in the
West region is well-developed, and Ethylene Oxide is a crucial raw material for
the production of various chemicals and derivatives. The concentration of
chemical manufacturing in this region has contributed to its dominance in the Ethylene
Oxide market. The West region benefits from a
well-established infrastructure and logistical network, including ports and
transportation facilities. This facilitates the import and distribution of
chemicals like Ethylene Oxide, ensuring a smooth and efficient supply chain for
industries in the region and beyond.
The proximity of the West region to key
manufacturing clusters and industrial zones in India has increased the demand
for Ethylene Oxide. Many chemical and petrochemical manufacturers rely on the
consistent and timely supply of Ethylene Oxide for their processes, making the
West region a strategic location for sourcing this chemical. The West region has access to
technical expertise, quality control, and specialized support services related
to Ethylene Oxide, reinforcing its dominance in the market. The presence of
research and development centers and chemical experts further contributes to
the region's capabilities in utilizing Ethylene Oxide for various applications.
Key Market Players
- Indian glycol Limited
- Galaxy
Surfactants Ltd
- Sterling
Auxiliaries Pvt Ltd
- Reliance
Industries Limited
- Mercury
Industries Ltd.
|
By Derivatives
|
By End Use
|
By Region
|
- Ethylene Glycol
- Ethoxylates
- Ethanol amines
- Glycol Ethers
- Polyethylene Glycol
- Polyether Polyols
|
- Chemical Processing
- Healthcare
- Food and Beverages
- Automotive
- Others
|
- West India
- North India
- South India
- East India
|
Report Scope:
In this report, the India Ethylene Oxide Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India Ethylene Oxide Market, By Derivatives:
o Ethylene Glycol
o Ethoxylates
o Ethanol amines
o Glycol Ethers
o Polyethylene Glycol
o Polyether Polyols
- India Ethylene Oxide Market, By Application:
o Chemical Processing
o Healthcare
o Food and Beverages
o Automotive
o Others
- India Ethylene Oxide Market, By Region:
o West India
o North India
o South India
o East India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the India
Ethylene Oxide Market.
Available Customizations:
India Ethylene Oxide Market report with the
given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
India Ethylene Oxide Market is an upcoming report
to be released soon. If you wish an early delivery of this report or want to
confirm the date of release, please contact us at [email protected]