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Production of Chemicals (2-Chloro-6 (Trichloromethyl) -Pyridine, Alkylamines, Alum, Zinc Sulphate, Sulfur and Sulfuric Acid, Solvents, Silicone Resin, Silica Gel Sio2nh2o, Salicylic Acid, Saccharin, Rubber & Rubber Chemicals, Resorcinol (3-Hydroxy Phenol)

Wednesday, May 3, 2017

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The chemical industry comprises the companies that produce industrial chemicals. Central to the modern world economy, it converts raw materials (oil, natural gas, air, water, metals, and minerals) into more than 70,000 different products.

The plastics industry contains some overlap, as most chemical companies produce plastic as well as other chemicals.

In modern age chemical industries have permeated most extensively in comparison with other industries and are progressing at a very rapid pace. Chemical Industry in India is one of the fastest growing industries under the Indian economy. The chemical industry comprises the companies that produce industrial chemicals. Central to the modern world economy, it converts raw materials into more than 70,000 different products. Chemicals have contributed in various sectors like food industry, fertilizers, perfumery, fragrance and flavour etc. Chemicals are used to make a wide variety of consumer goods, as well as thousands inputs to agriculture, manufacturing, construction, and service industries. There are numerous chemicals produced in chemical industry for example chloroform, caffeine, fertilizers, dyes, drug intermediates, herbicide, inorganic salts, copper sulphate, acetaldehyde etc. The chemical industry itself consumes 26 percent of its own output. The Chemical Industry in India is based on the idea of diversification. For example inorganic chemicals is the sector where the growth rate is near about 9% and the chemicals produced in this sector are mainly used in alkalis, fertilizers, etc. Depending on the product categories the chemical industry is divided in many other sectors like drugs and pharmaceuticals, fertilizers, fine chemicals like dyes and paints etc. The chemical industry in India which generates almost 13% of total national export is growing annually at a growth rate anywhere between 10% and 12%.

Market Outlook

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 Indian chemical industry is an integral component of the Indian economy and has the potential to grow at 9 per cent per annum to reach $214 billion by 2019. Key imperatives for the growth of chemical industry are to secure feedstock, right product mix and identify partnership opportunities to gain capital and technology support.

Construction chemicals market in India is projected to grow at a CAGR of over 15% during 2015 - 2020.

Global chemical production (excluding pharmaceuticals) will probably grow by 3.4% in 2016, slightly slower than in 2015 (+3.6%).

Total production in the Indian chemical industry was 9107 MT in FY11 and reached to 9627 MT in FY14 clocking a CAGR of 1.9 per cent from FY11-14; In FY15 (upto September 2014), the production reached at 4794 thousand MT.

Exports of the Indian chemical industry stood at USD4.9 billion for FY16* Exports in the chemical industry grew from USD12.4 billion in FY13 to USD12.7 billion in FY15, registering a growth of 0.9 per cent.

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