Industrial Chemical Market – India

Overview

India is known for its wide range of resources and it has a huge number of chemical industries. This causes plenty of opportunity for Industrial manufacturers and chemical trading companies. Some of the Indian chemicals that are dominant are Activated Carbon, Fertilizer chemicals, etc. Some other sectors having huge potential are listed below,

Classification of Chemical Sectors

• Basic Chemicals – 48%
• Specialty Chemicals – 21%
• Knowledge Chemicals – 31%

Expected Growth Rate

• Basic Chemicals – 8.8%
• Specialty – 10%
• Knowledge – 11.6%

Inorganic Chemicals

• It is characterized by a high degree of fragmentation even across high-volume product areas
• Fertilizer chemicals (4%), Caustic Soda (3%), Soda Ash (3%) are the major chemicals which has better growth rate and it is expected to record double-digit in 4 years
• Other common inorganic chemicals associated with india are,
  • Sulphuric acid,
  • Phosphoric acid,
  • Titanium dioxide,
  • Activated Carbon etc.
• Various types of Activated Carbon are common and have huge suppliers in India

Pharmaceutical Chemicals

• Indian Pharmaceutical industry ranks 4th & 13th in terms of Volume & Value in the world
• Manufacturing involves around 60000 types of finished medicine and 400 bulk drugs
• Pharma Chemicals trading has recorded 12% growth compared to previous year

Agrochemicals

• India is the 2nd largest manufacturer of agrochemicals in Asia
• Out of 145 pesticide-registered plants, there are 3 major chemicals that dominate the country,
  • SSP – 66
  • Urea – 31
  • DAP – 11

Petrochemical & Organic Chemicals

• It accounts for 2nd half of Basic chemicals which primarily comprises of Polymers, Synthetic fibers, fiber intermediates, plastic processing
• India ranks 3rd in Polymer consumption
• Among the polymers, PP and HDPE have the highest growth rate and production in the country than other types

Specialty Chemicals

• Paints & Coating chemical per-capita consumption is higher but has a highly fragmented unorganized sector
• Textile chemicals is a key sector because it has an established manufacturing hub based on low-cost manpower, the hindrances are high input costs, low-profit margins etc.
• Similarly, Dyes industry has a greater demand pull which leads to full-fledged manufacture of dyes in India
• The specialty chemical market involves key market potential industrial chemical suppliers.