This is Guar gum among India’s strongest, but most underrated export success stories. It is found in daily life-products: ice cream, sauce, shampoo, medicine, drilling fluids, cosmetics, and so much more.
India is the biggest producer of guar, contributing almost 80% of the total volumes in the world. Most of the bonds of guar gum are imported to the United States and Europe.
The industry has manufacturing facilities all over the globe. SHEFEXIL-a branch of the Ministry of Commerce & Industry- ranks export gum among its few priorities, thus making it an attractive one for MSMEs and young entrepreneurs.
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Why This is the time for guar gum
India exported 418,000 MT of guar gum worth 540 million dollars to the USA, Germany, Norway, and Russia in 2023/2024. It can be said that global demand for guar gum is steady and rising.
Besides that, because guar is cultivated in several states such as Rajasthan, Gujarat, Haryana, Punjab, and Uttar Pradesh, this gives an assurance of supply of the crop across the year.
It adds another plus for the fact that the government is very supportive. SHEFEXIL provides various facilities like quality enhancement, buyer engagement, trade assistance, and other types of guidance to its exporters.
The continued demand for guar gum and its derivatives also continues based on huge applications in food, pharma, cosmetics, paper, textiles, and oil & gas, which balances out periods of slumps in any one industry.
Even low-volume, high-margin products such as hydroxypropyl guar and cationic guar are valuable avenues for founders to diversify into.
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India’s Export Performance
Growth in India’s Export Performance is another pointer of the colossal demand that is likely to exist for guar gum over time.
The volume and value of exports increased considerably during recent years, from 259,000 MT (USD 286 million) in FY 2020-21 to 379,000 MT (USD 517 million) in FY 2021-22, and finally to 697,000 MT (USD 1,046 million) in FY 2022-23, thus indicating an increased moving activity of the oilfield sector.
In the FY 2023-24, the export performance has shown stabilization with 418,000 MT at USD 541 million, which still demonstrates India’s strong presence in the international market.
Demand Across Industries
Demands for guar gum are so diversified that they protect market demand; it is widely demanded. It is a thickener and stabilizer in dairy products, in frozen desserts, in sauces, and in bakery mixes. The food and beverage industries use it.
It is also found in creams, gels, tablets, conditioners, and shampoos within the pharmaceutical and personal care segment. For the oil and gas sector, it is used in hydraulic fracturing and hole-filling fluids in drilling. In addition, it is significantly important in the sectors of the paper industry, textiles, and mining.
The extensive application of guar gum is ensuring continuity in its demand over time. If I sum it up, it is by and large used in many industries which makes it a product of high demand across the market.
Read More: Guar Gum Powder Manufacturing Plant
A Guar Gum Plant Output
A guar gum plant is food-grade and also produces industrial-grade guar gum powder. Many units produce derivative types of such gum, such as hydroxypropyl guar, cationic guar, and oxidized guar; all these have a high market value and can sell at a high price in international markets.
The by-products of the plants themselves are guar meal, a protein-rich animal feed. The overall process of production involves several steps which include cleaning, hydration, dehusking, splitting, flaking, grinding, grading, and finally packaging. Chemical modifications, quaternization, and etherification are addition of the processes in plants that produce derivatives.
Read More: Export Food Products from India: A Step-by-Step Guide for Startups (PMKSY, PMFME, PLISFPI)
Small Business Models
Owners can choose the business structure based on their investment and targeted market. The food-grade guar gum export market is consistent and reliable. Repeated purchases come from the derivatives of the personal care and specialty units.
With oilfield-grade guar units, all that large volume orders can be harnessed, and the worldwide drilling cycle can be taken advantage of. Specialty and organic guar gum products can be directed to premium buyers in the US and Europe.
Finally, seed-to-splits-integrated business models give the highest scalability and cost control in the long term.
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How NPCS Can Help You
New entrepreneurs can access help from NIIR Project Consultancy Services (NPCS) in the form of Detailed Market Survey-cum-Techno-Economic Feasibility Reports (DPR).
This gives comprehensive information on what is needed to set up and grow a guar gum unit, from manufacture to layout of the plant, machinery to be used, raw materials, and export considerations to all financial aspects. With this information in hand, all risks to founders can be obviated to make their projects as smooth as possible.
FAQS
1. For fledgling companies, could guar gum processing be a profitable venture?
A. Guar gum processing is a money-spinner for the startups. The field is diversified and export driven and has superlative demand on a global scale. Because of India’s predominance in guar cultivation, the new units find it very easy to sustain margins and locate buyers.
2. What are required to invest in the business?
A. Generally, small-scale projects require investing about ₹1-3 crore. In the case of mid-level projects especially those in the business of derivative products, this could go to upwards of ₹10-25 crore. Clients can ask NPCS for specific project overviews regarding the precise estimation.
3. Which of these countries is the biggest importer of guar gum from India?
A. The major countries include the USA, Germany, Russia, Norway, Netherlands, and China.
4. Which products have the maximum amounts of profitability?
A. Among all the derivatives of guar, cationic guar and hydroxypropyl guar are the costliest and, thus, most profitable owing to their exclusivity and highly sought-after applications.
5. Which type of assistance does NPCS give to install factories?
A. NPCS provides pre-plant activities, including feasibility analysis, process assistance, plant layout, equipment, finances, and overseas markets forecasting, as support for plant setup.
