Indian Chemical Industry

Pallavi Kate

December 23, 2011

History Of Chemical Industry

History of Chemical Industry is something very important to be discussed if one wants to get a vivid picture of world chemical industry and its trends. Though for many years, the western countries dominated the Global Chemical Industry, the first chemical operations which signify the birth of chemical industry took place in the Middle East long back in 7000 B.C. After them, next were the Chinese people. The first large scale chemical industry came into existence in the 19th century by  a British Entrepreneur.

Chemical Industry Evolution In India

Chemical industry is one of the oldest domestic industry of India which started working soon after India's independence in 1947. It was till 1991 that India was a closed economy. However, after adoption of liberal policy in 1991 benefited most of the industries, including the chemical industry in India. It has evolved from being a basic chemical producer to becoming an innovative industry. Since then, the industry has gained recognition in the global economy. Below are the first factories of independent India.

Bengal Chemicals in KolkataSindri fertilizer plant near Jodhpur in RajasthanPetroleum refining (Tiny one) in Digboi, Assam

Indian Chemical Industry Scenario FACTS OF INDIAN CHEMICAL INDUSTRY �•13% of the total export

•13% of the total industrial output & 7% of the GDP

•10 % - 12 % growth per annum �

•2% of global chemical industry

•Indian pharmaceutical industry ranks 4th in �volume & 13th in term of value in the world.

•India – a strong player in the generic pharmaceutical market

•India – 2nd largest producer of �agrochemicals in Asia

Indian Chemical Industry Segments

Major Players Of Drugs & Pharmaceuticals

Ranbaxy Shasun Cipla

Dr. Reddy's Lupin Cadilla

IPCA Sun Wockhardt

Aurobindo Kopran 

Major Players Of Petrochemicals

Reliance Industries Ltd Haldia Petrochemicals Ltd.

Indian Oil Corporation GAIL

Bongaigaon Refinery and NOCIL (National Organic Petrochemicals Ltd. Chemical Industry Ltd.)

Manali Petrochemical Limited

  

Major Players Of Pesticides, Fertilizers & Agro-Chemicals

India:

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

Group Inorganic Chemicals

Organic Chemicals

Dyeing, Tanning and coloring

matter

Pesticides

2001-02 1259 7624 2436 13562002-03 1946 10190 2943 1487

2003-04 1949 12975 3112 17462004-05 2871 16269 3111 20962005-06 2431 21504 3750 27912006-07 3629 25950 4562 28772007-08 3317 28870 5327 59692008-09 5166 34058 5900 86152009-10 4540 35241 4328 8611

Trend In Export Of Major Chemicals From India

Group Inorganic Chemicals

Organic Chemicals

Dyeing, Tanning and

coloring matter

Pesticides

2001-02 5730 8795 1138 3622002-03 5579 10695 1344 2872003-04 5916 14363 1617 5012004-05 8130 18785 1878 7122005-06 10446 22776 2245 7542006-07 11473 27330 2720 8062007-08 11393 32642 3031 73572008-09 - - - -2009-10 16270 44505 4328 11579

Trend In Import Of Major Chemicals From India

Organic Chemical

Methanol

Trade Analysis For Methanol

Production 0.24Import 1.06Export 0.01

Comnsumption 1.3

Methanol – Market Outlook

Demand for Methanol has increased at a CAGR of 10 per cent from 0.8 mmtpa in FY04 to 1.3 mmtpa in Fy09. The domestic production of Marthanol is not sufficient to meet the demand of Methanol in India. As a result, in Fy 09, the net inport of Methanol was 1.06 mmtpa i.e. more than 4 times the domestic production of 0.24 mmtpa. Import of methanol has increased at a high CAGR of 22% 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 the chemicals industry, methanol is used mainly to manufacture formaldehyde, acetic acid, di-methyl terephthalate (DMT) and some solvents. In the energy industry, methanol goes into the manufacture of methyl tertiary butyl ether (MTBE), tertiary amyl methyl ether (TAME), dimethyle ether (DME) and bio diesel among other chemicals. Methanol is also used for blending with petrol.

Domestic methanol demand is expected to grow at a CAGR of 6.8% from Fy10 to Fy14. The key growth drivers are growth in construction, infrastructure and new areas such as fuel blending and bio diesel. The demand from formaldehyde segment (largest user of methanol) is expected to grow at 8%. Sespite the higher operating rates expected in future, more than 2/3rd of demand will still be required to be met by imports.

Referenceshttp://www.cacci.org.tw/ACC%20Newsletter/May05/Katiyar2.pdf

http://chemicals.indiabizclub.com/info/major_players

http://chemicals.nic.in/English.pdf

http://chemicals.indiabizclub.com/info/major_players

Handbook of Indian Chemical Industry

http://www.economywatch.com/world-industries/chemical/history.html

http://www.economywatch.com/world-industries/chemical/india.html

http://www.indialabexpo.com/market/chemical.asp

http://chemicals.nic.in/chem1.htm

http://manasnanavaty.blogspot.com/2009/01/globalisation-in-indian-chemical.html

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