Indian Chemical Industry Pallavi Kate December 23, 2011
History Of Chemical IndustryHistory of Chemical Industry is something veryimportant to be discussed if one wants to get avivid picture of world chemical industry and itstrends. Though for many years, the westerncountries dominated the Global Chemical Industry,the first chemical operations which signify the birthof chemical industry took place in the Middle Eastlong back in 7000 B.C. After them, next were theChinese people. The first large scale chemicalindustry came into existence in the 19th century by a British Entrepreneur.
Chemical Industry Evolution In IndiaChemical industry is one of the oldest domestic industry of India whichstarted working soon after Indias independence in 1947. It was till 1991that India was a closed economy. However, after adoption of liberalpolicy in 1991 benefited most of the industries, including the chemicalindustry in India. It has evolved from being a basic chemical producerto becoming an innovative industry. Since then, the industry hasgained recognition in the global economy. Below are the first factoriesof independent India. Bengal Chemicals in Kolkata Sindri fertilizer plant near Jodhpur in Rajasthan Petroleum refining (Tiny one) in Digboi, Assam
Indian Chemical Industry Scenario Chemical Industry is an important constituent of the Indian economy. Its size is estimated at around US$ 35 billion approx., which is equivalent to about 3% of Indias GDP. Chemical industry is a significant contributor to the Indian economy, accounting for 11% of total industry output and 13% of Gross Value Added by the manufacturing sector in FY10. The industry contributes to 10% of Indias total exports and is a net earner of foreign exchange. It is also a significant employment generator and participation field for small and medium scale industries (SMEs). The size of Indias chemical industry was approximately $ 83 Bn in FY10, and could grow at 15% annually to $ 330 Bn in 2020 in the most likely scenario, outpacing the GDP growth rate.The growth is expected to be driven by rising demand in end-usesegments and rising exports fuelled by increasing export competitiveness.
Indian Chemical Industry Scenario FACTS OF INDIAN CHEMICAL INDUSTRY •13% of the total export •13% of the total industrial output & 7% of the GDP •G10 % - 12 % growth per annum •2% of global chemical industry •2 Indian pharmaceutical industry ranks 4th in volume & 13th in term of value in the world. •India – a strong player in the generic pharmaceutical market •pIndia – 2nd largest producer of agrochemicals in Asia
Indian Chemical Industry Segments
Major Players Of Drugs & Pharmaceuticals Ranbaxy Shasun Cipla Dr. Reddys Lupin Cadilla IPCA Sun Wockhardt Aurobindo Kopran
Major Players Of Petrochemicals Reliance Industries Ltd Haldia Petrochemicals Ltd. Indian Oil Corporation GAILBongaigaon Refinery and NOCIL (National Organic Petrochemicals Ltd. Chemical Industry Ltd.) Manali Petrochemical Limited
Major Players Of Pesticides, Fertilizers & Agro-ChemicalsIndia:United Phosphorus Rallis Excel Industries• MNC: Hoechst Agrevo Novartis Bayer
Major Players Of Speciality & Fine Chemicals•Paints –Asian Paints Nerolac ICI Courtalds Jenson & Nicholson•Dyes & Intermediates – Color Chem (Hoechst) Clariant•Inks – Coates Hindustan Inks
SWOT ANALYSIS Of Indian Chemical Industry
Global Chemical Industry Fy 10Sector USD Bn % ShareSpeciality Chemicals 740 22Agrochemical 50 1Biotechnology 180 5Base Chemicals 1525 45Pharmaceuticals 900 27Total 3395 100
Indian Chemical Industry Fy 10Sector USD Bn % ShareSpeciality Chemicals 15 18Agrochemical 2 2Biotechnology 2.5 3Base Chemicals 43.3 53Pharmaceuticals 20 24Total 83 100
Trend In Export Of Major Chemicals From India Group Inorganic Organic Dyeing, Tanning Pesticides Chemicals Chemicals and coloring matter 2001-02 1259 7624 2436 1356 2002-03 1946 10190 2943 1487 2003-04 1949 12975 3112 1746 2004-05 2871 16269 3111 2096 2005-06 2431 21504 3750 2791 2006-07 3629 25950 4562 2877 2007-08 3317 28870 5327 5969 2008-09 5166 34058 5900 8615 2009-10 4540 35241 4328 8611
Trend In Import Of Major Chemicals From India Group Inorganic Organic Dyeing, Pesticides Chemicals Chemicals Tanning and coloring matter 2001-02 5730 8795 1138 362 2002-03 5579 10695 1344 287 2003-04 5916 14363 1617 501 2004-05 8130 18785 1878 712 2005-06 10446 22776 2245 754 2006-07 11473 27330 2720 806 2007-08 11393 32642 3031 7357 2008-09 - - - - 2009-10 16270 44505 4328 11579
Organic Chemical Methanol
Trade Analysis For Methanol Production 0.24 Import 1.06 Export 0.01Comnsumption 1.3
Methanol – Market Outlook
Demand for Methanol has increased at a CAGR of 10 per cent from 0.8 mmtpain FY04 to 1.3 mmtpa in Fy09. The domestic production of Marthanol is notsufficient to meet the demand of Methanol in India. As a result, in Fy 09, the netinport of Methanol was 1.06 mmtpa i.e. more than 4 times the domesticproduction of 0.24 mmtpa. Import of methanol has increased at a high CAGR of22% from 0.4 mmtpa in FY04 to 0.85 mmtpa in FY09.The two main end-user industries of Methanol are chemicals and energy. In thechemicals industry, methanol is used mainly to manufacture formaldehyde,acetic acid, di-methyl terephthalate (DMT) and some solvents. In the energyindustry, methanol goes into the manufacture of methyl tertiary butyl ether(MTBE), tertiary amyl methyl ether (TAME), dimethyle ether (DME) and bio dieselamong other chemicals. Methanol is also used for blending with petrol.Domestic methanol demand is expected to grow at a CAGR of 6.8% from Fy10to Fy14. The key growth drivers are growth in construction, infrastructure and newareas such as fuel blending and bio diesel. The demand from formaldehydesegment (largest user of methanol) is expected to grow at 8%. Sespite the higheroperating rates expected in future, more than 2/3rd of demand will still berequired to be met by imports.
Referenceshttp://www.cacci.org.tw/ACC%20Newsletter/May05/Katiyar2.pdfhttp://chemicals.indiabizclub.com/info/major_playershttp://chemicals.nic.in/English.pdfhttp://chemicals.indiabizclub.com/info/major_playersHandbook of Indian Chemical Industryhttp://www.economywatch.com/world-industries/chemical/history.htmlhttp://www.economywatch.com/world-industries/chemical/india.htmlhttp://www.indialabexpo.com/market/chemical.asphttp://chemicals.nic.in/chem1.htmhttp://manasnanavaty.blogspot.com/2009/01/globalisation-in-indian-chemical.htmlhttp://4.bp.blogspot.com/_uX1ULPKCpHc/SY1J96g9FEI/AAAAAAAAAu4/wgq_QFxrCp4/s1600-h/im