Friday, June 21, 2013
Indian Chemical Industry
With Asia’s growing contribution to the global chemical industry, India emerges as one of the focus destinations for chemical companies worldwide. With the current size of approximately $108 billion, the Indian chemical industry accounts for ~3% of the global chemical industry. Two distinct scenarios for the future emerge, based on how effectively the industry leverages its strengths and manages challenges. In the base case scenario, with current initiatives of industry & government, the Indian chemical industry could grow at 11% p.a. to reach size of $224 billion by 2017. However, the industry could aspire to grow much more and its growth potential is limited only by its aspirations. In such an optimistic scenario, high end–use demand based on increasing per capita consumption, improved export competitiveness and resultant growth impact for each sub-sector of the chemical industry could lead to an overall growth rate of over 15% p.a. and a size of $290 billion by 2017 (~6% of global industry). This has a potential for further upside in the future considering India’s increasing competitiveness in manufacturing The size of the sub-sector is estimated at around USD 35 bn (approximately Rs 1575 bn). The basic chemicals make up for nearly 57% of the sub-sector, followed by about 26% of specialty chemicals. The rest is made up of high-end chemicals or what are now termed as knowledge segment.
Against an overall installed capacity of around 10 mn tonnes, India produces nearly 8 mn tonne, of an assortment of chemicals. These exclude petrochemicals, but include chlor-alkalis, and dyes and dyestuffs.
The chemicals industry is a highly versatile segment in the overall industrial economy of India. It has linkages with almost every other industrial activity, be it food processing, metallurgy, textiles, rubber or leather. There is, in fact, hardly any segment where chemicals do not feature.
The industry is broadly segmented into four major categories:
Chlor-alkali and inorganic chemicals: caustic soda, soda ash, sulphuric acid, titanium dioxide, carbon black, calcium carbide, aluminium fluoride and others;
Organic including alcohol-based chemicals: ethyl glycol, phenols, acetic acid, acetic anhydride, vinyl acetate, monomers, ethylene dichloride, ethyl acetateand others;
Petrochemicals-based specialties: leather and textile auxiliaries, synthetic resins, rubber chemicals, especially for tyres; and Agro-oriented chemicals: guargum, starch, citric acid, sorbitol, yeast and others.
Niir Project Consultancy Services (NPCS) can provide books and project reports on Chemical Industry, which can be useful to know more about subject.
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