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India records world's highest growth rate in chemical sector

Our Bureau, New DelhiThursday, September 19, 2002, 08:00 Hrs  [IST]

The rate of growth of the Indian chemical industry over the last 5 years has been double that of the Asian growth rate in chemicals sector and over 5 times the world growth rate. The Indian Chemical Industry, which is approximately Rs 1200 billion (US$ 28 billion) in size, currently accounts for 1.5 per cent of the global chemicals market. The country''s trade in chemicals is 1.3 per cent of the total chemicals trade worldwide. And this fast growing sector has been ranked 12th in world terms of volume. In India, the chemical industry has a weightage of 12.5 per cent in the Index of Industrial Production (IIP Base : 1980-81 = 100) and 16.2 per cent share of manufacturing segment in Index of Industrial Production which is an indication of the big role that it plays for the manufacturing sector in India as a whole. Currently, the size of the global chemical market, which is to the astronomical tune of US$ 1.5 trillion with tradevolume of US$ 400 billion, has been growing consistently over the last two decades at a rate of 1.5 times the world GDP growth. Chemicals industry worldwide has a big presence covering a wide range of products cutting across almost every sphere of life. After a prolonged slump of more than two years, a steady growth in the consumption and production of chemicals is expected. Chemical Industry - Asia Pacific The chemical industry in the Asia Pacific region has grown faster than the global chemical industry and adds US$ 30 billion worth of output every year. 45% of the total chemical products produced in the region are bulk organic chemicals which also forms a major component in the export basket from the region. This region is fast emerging as a key player in global chemicals business and commands 30 per cent share of global chemical market. In the Asia Pacific region China & India are the largest markets. Strengths of Indian chemical industry India has the following advantages with regard to the chemical industry. - Highly skilled scientific manpower pool - Proven capability for chemical process development - Agro feedstock base unrivaled by other nations except China and USA - Large market - a substantial part of which is untapped. It contributes 13% of total exports of the country and its exports were US$ 3 billion in 1998-99 (around 10% of the total Indian exports).Its contribution to total national revenue is 20% by way of customs and excise duties. As a result of the global slump in the chemicals market during the last 3 years, Indian chemical Industry growth rate has been declining but maintaining a positive rate of growth nevertheless: Year Growth (%) 1995-9611.0% 1996-971.9% 1997-987.5% 1998-993.5% Excluding fertilisers, petrochemicals, synthetic fibres and pharmaceuticals India has the following segments in the chemical industry. - Inorganic Chemicals - Organic Chemicals - Dye stuff & Paints - Agrochemicals - Specialty Chemicals Concentration of Chemical Plants - Jamnagar-Vadodara-Gandhar -Surat Belt (Gujarat) - Mumbai-Raigad-Patal-ganga-Nagothane Belt (Maharashtra) - Chennai belt (Tamil Nadu) - Hyderbad Belt (mainly Pharmaceuticals) (AP) - Cochin belt (Kerala) - Calcutta - Haldia belt (West Bengal) - Udaipur & Kota belt (Rajasthan) - VALUE OF CHEMICALS EXPORTS (1997-98) : US$ 2.68 BILLION The exports from the chemical industry in India mainly consists of organic chemicals (Formaldehyde, Ethylene Glycol, Acetic Acid, Phthalic Anhydride, etc); inorganic chemicals (Caustic Soda, Soda Ash, Sulphuric Acid, etc); synthetic fibres (PFY, NFY, etc); dye stuff and paints, agrochemicals (pesticides, fungicides, etc) and fertilizers. The export destinations are USA, France, UK, Italy, China, Russia, Ukraine, etc. - VALUE OF IMPORTED MACHINERY FOR CHEMICALS : US$ 760 MILLION - VALUE OF IMPORTED CHEMICALS (1997-98): US$ 3.93 BILLION OF WHICH Inorganic Chemicals (Halogens, earth metals, Ammonia, etc) : US$ 1.08 billion Organic Chemicals (Phenols, ethers, saturated acyclic acids, etc) : US$ 1.77 billion Tanning / Dyeing Extracts (Printing Inks, Prepared pigments, etc) : US$ 160 million Essential Oil & Resinoids (Mixtures of odiferous substances, etc) : US$ 24 million Soaps, Active Agents, etc (Artificial waxes, Lubricating materials) : US$ 68.2 million The main origins of imports are USA, UK, Saudi Arabia, Malaysia, Spain, Italy, Denmark, etc. Import Tariff Structure WTO Bound Rate for Chemicals for the year 2000 : 40% Peak Import Duty Rate in Chemicals in India for the year 1999-2000: 35% Import Duty for Machineries for Chemicals Industry : 25% [The peak rate for chemicals has been reduced from 125% in 1990-91 to 35% in 1998-99 following India''s commitment to WTO] Foreign Direct Investment (August, 1991 - June, 1998) : Rs 12329.4 crores or US$ 2.93 billion (7.32% of total FDI in India) Indian Chemical Industry - Future Trends FUTURE OUTLOOK Today the Indian chemical industry is at the crossroads. The existing technology needs to be upgraded with the help of foreign partners. The per capita consumption of chemicals in the country is way below the global average which is an indication of the huge market potential. In the next millennium, Indian chemical industry needs to engage in strategic partnerships - both domestically and with foreign partners - to realise its latent potential. PROSPECTIVE AREAS FOR FOREIGN COLLABORATION - Technology Tie-ups with special emphasis on Clean Technology - Process Consultancy - Feedstock Linkages - Specialty Chemicals - R&D - Waste Management - Marketing - Safety - Environment Protection Demographic shifts will increase demand for better and newer products which can cater to every segment of the society. Market will segment into: - Products for economically well off - Products for basic needs THRUST AREA - SPECIALTY CHEMICAL INDUSTRY Specialty Chemicals involve high value materials and multi-step processes - generating a larger ratio of waste products to the final product. It covers a wide range of products from catalysts to aroma chemicals and Involve a high degree of application development and chemical process developments sector is knowledge based and knowledge driven with extensive patent protection. Development of specialty chemicals involve multidisciplinary skills and a high risk factor because unlike commodity chemicals, these are not mass products. SPECIALTY CHEMICALS - WORLD & INDIAN SCENARIO Indian Market for specialty chemicals is estimated at $1.2 billion (2-3% of specialties produced worldwide). Globally, US$ 50 billion worth of specialty chemicals is traded annually which is more than 4% of the total chemicals market.90% of Specialties are produced in US, Europe & Japan. END USER MARKET SEGMENTS DISTRIBUTION FOR SPECIALTY CHEMICALS -30% Drugs -30% Agrochemicals -20% Flavours, Aroma & Food Additives -20% Others INCREASING USER BASE OF ALCO-CHEMICAL INDUSTRY The market size for alcohol based chemical industry is around Rs. 5000 crores (US$ 1.2 billion). Annually it contributes Rs. 500 crores to exchequer and has generated employment direct & indirect employment for around one million people. INVESTMENT Following impetus provided by the Central Government, a sizeable investment of Rs. 5000 crore or US$ 1.2 billion has been made in the Alco-Chemical Industry. MAJOR PRODUCT CATEGORIES Few of the major bulk/specialty chemicals being manufactured in the country exclusively from the industrial alcohol route are - - Acetic acid 2,90,000 tpa - Acetic anhydride 78,000 tpa - Vinyl Acetate Monomer 52,000 tpa - Pyridines, Picolines & other derivatives 15,000 tpa - Ethyl acetate 65,000 tpa - Mono Ethylene Glycol 25,000 tpa - Amines, Ethoxylates & others 50,000 tpa ORGANIC CHEMICALS Organic Chemicals are mostly produced in the western part of India (Maharashtra & Gujarat). India produces a wide range of organic chemicals with a market size of Rs. 150 billion (US$ 3.58 billion). In the period 1990-98 the demand for organic chemicals in India has grown at the rate of 10% on an average and is expected to continue the trend. Changing Face of the Indian Chemical Industry The chemical industry has taken conscious initiatives to achieve global standards by improve productivity through the following measures: - Better raw material utilisation - By product reduction and use - Energy reduction & conservation - Water management - Upgradation of plant & equipment - Continuous development of human resource The Indian chemical sector is in the process of upgrading the existing technology and switching over to technology which is - Cleaner (No End-Of-Pipe Treatment) - Inherently safe - Low energy intensive technology - Better raw material productivity - Better energy - integrated - Better reactor - separator combinations. Visitor Profile 1. CEOs 2. CIOs 3. CFOs 4. Business Development Professionals 5. Marketing Professionals. 6. Directors of Corporate Strategy 7. Knowledge Officers. 8. Procurement Executives. 9. Other senior managers in Chemical, Petrochemical & Pharmaceutical Industry 10. Chemical Traders 11. Consultants, 12. Financial Institutions 13. R&D Institutions. 14. Chemical Industry Professionals. MAJOR FUNCTIONS AT "INDIA CHEM 2002" Date Time Program Venue 16/09/02 Monday 1200 Pre event Press Conference (followed by Lunch) FICCI 17/09/02 Tuesday 1800-1900 Inauguration by Dy. Prime Minister Vigyan Bhawan 1945 Inauguration of German Pavilion Pragati Maidan 2000 Inauguration of Maharashtra Pavilion Pragati Maidan 2030 Gala Dinner (Vatika Complex) Pragati Maidan 18/09/02 Wednesday 0915 - 1015 Inauguration of Latin American Health Summit (by MOS, Commerce) Pragati Maidan (Hall No.13) 1030 - 1130 Inauguration of Conference by Vice President of India Vigyan Bhawan 12.30 PM Lunch hosted by Bayer (by invitation) Hotel Oberoi 01.00 PM Lunch hosted by FICCI President for Conference Delegates Vigyan Bhawan Reception by German Ambassador ( by invitation) German Embassy* 19/09/02 Thursday Dinner by Partner State* (Maharashtra) 20/09/02 Friday 2000 Dinner by Minister (Chemicals & Fertilisers) ( by invitation) Hotel Ashok 21/09/02 Saturday 1430-1530 Valedictory of the Conference FICCI * Not yet confirmed INAUGURATION OF CONFERENCE AT INDIA CHEM 2002 10.30 A.M., 18TH SEPTEMBER 2002 VIGYAN BHAWAN, NEW DELHI MINUTE-TO-MINUTE PROGRAM 1030 Arrival of Vice President on the dais 1030-1033 Presentation of Bouquet to the guests 1033-1037 Invocation- Ganesh Vandana 1037-1040 Welcome Address: Shri Vinay Kohli, Secretary, Deptt of Chemicals & Petrochemicals 1040-1052 Keynote Address by Dr H Noerenberg, Chairman, Bayer Polymers 1052-1104 Vision Statement by Shri Mukesh Ambani, CMD, Reliance Ind. Ltd. 1104-1108 Address of MOS (C&F) 1108-1113 Address of Minister (C&F) 1113-1127 Inaugural Address by Vice President of India 1127-1130 Vote of Thanks : President, FICCI 1130 Departure of Vice President Proposed Minute-to-Minute Programme of the Inaugural Function On September 17, 2002 Venue : Vigyan Bhawan, New Delhi Time : 6.00 P.M. - 7.00 P.M. Arrival of Chief Guest 18.00 hrs Bouquets 18.00 - 18.03 hrs Invocation - Ganesh Vandana 18.03 - 18.07 hrs Welcome by President, FICCI 18.07 - 18.12 hrs Presentation of Momentos 18.12 - 18.15 hrs Address of Shri Tapan Sikdar, Minister of State of Chemicals & Fertilizers 18.15 - 18.20 hrs Address Hon''ble Chief Minister of Maharashtra-Partner State 18.20 - 18.25 hrs Address by His Excellency the German Ambassador 18.25 - 18.30 hrs Address by Hon''ble Minister of Chemicals & Fertilizers 18.30 - 18.35 hrs "INDIA-CHEM 2002" - Exhibitors Foreign Participants S. No. Organisation Chevron Phillips Chemical Company E I Dupont India Ltd Hunter Associates Laboratory Innocentive Inc. Particle Measuring Systems Inc. 6.- 11. Pennsylvania Pavilion Dynalene, J & J Agri-Products & Services, Inc., Supercritical Fluid Technology Specialists, Surtrea International, Universal Industrial Gases Inc, Westinghouse Plasma Corporation Pfizer Ltd Rockwell Automation Swagelok Company Technology Catalysts International Unocal Bharat Services Pvt. Ltd. Germany S. No. Organisation Adams Armaturen GmbH BASF Bayer Beumer Maschinenfabrik GmbH & Co. KG Degussa India Pvt. Ltd. Eastern Medikit Limited Gebrueder Loedige Maschinenbau GmbH Hans Turck GmbH & Co KG Hitech Zang GmbH Horizon GmbH Hosokawa Alpine Aktiengesellschaft & Co. OHG Hosokawa Micron GmbH IKA-Werke GmbH & Co. KG. Impetus Incorporated Indo - German Chamber of Commerce Koerting Hannover AG Krishna Antioxidants Pvt. Ltd. Kruess GmbH Advancing Surface Science Linde Process Technologies India Pvt Ltd Lutz-Pumpen GmbH & Co. KG M+W Zander (S) Pte Ltd MAN Turbomachinery Pvt Ltd Netzsch Orbit Research Associates Pvt. Ltd. Pamm Glatt Rittal India Pvt Ltd Samson Controls Pvt. Ltd. Sandvik Process Systems GmbH SGL Acotec GmbH Uhde GmbH VDMA Waaree Instruments Ltd. Zeolites & Allied Products CHINA S. No. Organisation Chengdu Nabta Chemical Industrial Co. Ltd. China National Bluestar (Group) Corporation China North Chemical Industries Corp. Dahuachem International Economic & Trade Corp. Hebei Chengxin Co. Ltd. Henan Stone Fine Chemicals Co. Ltd. Hubei Chuyuan Fine Chemical Industry Group Co. Ltd. Jiangsu Yabang Group Corporation Qingdao Jiaonan Bright Moon Seaweed Ind. Co. Ltd. Shandong Ocean Chemicals Imp & Exp.Co.Ltd Sinochem Guangdong I.&E. Co. Zhejiang Changshan Chemical Co. Ltd. Zhejiang Sanhuan Chemical Co. Ltd. Zhengzhou Tuoyang Bio-Engineering Co. Ltd. OTHERS S. No. Organisation AB Sandvik Steel (Sweden) Cheminova India Ltd. (Denmark) Chemtex & Corrosion Middle East (UAE) Dimension Four (Dubai) Iran Petrochemical Commercial Company (Iran) 6-12 Italy Pavilion Angelini (Aziende Chimiche Riunite Angelini Francesco SPA), Borregaard Italia, Dipharma SPA, Garo Dott. Ing. Roberto Gabbioneta S.P.A, OCME Srl, OMAL SPA, Savino Barbera Snc MCC PTA India Corp .Private Ltd (Japan) Melvern (UK) Sina Chemicals (Iran) ThermoARL - Hinditron (Switzerland) INDIAN PARTICIPANTS S. o. Organisation Aarti Industries Ltd. Aimil Ltd Akshay Group Alchem International Ltd. Alkali Metals Ltd. Alkem Laboratories Ltd. Alkyl Amines Chemicals Ltd. Alpha Drug India Ltd Andhra Pradesh Industrial Infrastructure Corp. Ltd. ASMECHEM Associated Capsules Group Avon Weighing Systems Pvt Ltd Bafco Pharmaceuticals (India) Ltd. Bajaj Chemicals Pvt Ltd Bharat Petroleum Corpn. Ltd Bicco Agro Products Pvt. Ltd. Blockdale Publishing Blue Cross Laboratories Ltd. Cadila Healthcare Ltd. Cadila Pharmaceuticals Ltd. Canton Laboratories Chembrouse International Pvt. Ltd Chemical Business Chemical Week Chemical Weekly CIPET Council for Scientific & Industrial Research (CSIR) CPMA Crescent Organic Pvt. Ltd. Cytec Industries Inc. - Phosphine Chemicals Daga Petrochemicals Ltd. DCM Shriram Consolidated Ltd. Deepak Fetilizers & Petrochemicals Corporation Ltd. Deepak Group Deepak Nitrate Ltd. Dhanuka Laboratories Pvt. Ltd. Dhanuka Pesticides Limited Dipesh Engineering Works DMAI Dr Reddy''s Laboratories Limited Everest Transmission Excel Industries Ltd. Export - Import Bank of India Famy Care Forum Bioscience ( Dabur) G C Chemie Pharmie Ltd. Galaxy Surfactants Ltd Gas Authority of India Ltd. GNFC Ltd Goel Scientific Glass Works Pvt. Ltd. Gujarat Alkalies & Chemicals Ltd Gujarat Heavy Chemicals Ltd Gujarat Industrial Development Corporation Gujarat Maritime Board Gujarat State Fertilizers & Chemicals Ltd Gujarat State Petroleum Corporation Ltd. Haldia Petrochemicals Ltd. Harsiddha Engineering Works Hikal Ltd Hinditron Services Pvt. Ltd. Hindustan Dorr-Oliver Ltd Hindustan Insecticides Ltd Hindustan Organic Chemicals Ltd. Hindustan Petroleum Corporation Ltd Hunter Associates Laboratory (India) I R Technology Services Pvt Ltd IKA-Werke GmbH & Co. KG. (India) IMC Limited Imkemex India Ltd. Indian Chem News (ICN) Indian Chemical Manufacturers Association (ICMA) Indian Chemical Merchants & Manufacturers Association Indian Dyestuff and Chemicals Mfg. Co. Indian Express Newspapers (Bombay) Ltd. Indian Petrochemicals Corporation Ltd. Indian Purchase.com Infoware Ltd Indoco Remedies Limited IND-Swift Laboratories Ltd Industrial Extension Bureau (iNDEXTb) Institute of Pesticides Formulation Technology (I.P.F.T) IPCA Laboratories Limited iPharma India Ltd Italian Trade Commission(ICE) Jai Research Foundation Johnson Matthey Chemicals Jubliant Organosys Ltd Kamani Oil Industries Kunstocom (India) Ltd LakeChemicals Pvt Ltd Lupin Limited Maharashtra Industrial Development Corporation Maharashtra Pollution Control Board Mather & Platt Mitsubishi Chemicals Mojj Engineering Systems Ltd. Nicholas Piramal India Ltd Niulab Equiment Co. Pvt Ltd Northern Minerals Limited Orbit Technologies pvt Ltd 100. PI Indutries 101. Praj Industries Limited 102. Process Chemicals Co. 103. Qualikem Fine Chemicals Pvt. Ltd. 104. Quality Council Of India 105. Rallis India 106. Ranbaxy Laboratories Ltd 107. Rathi Lightnin Mixers Pvt. Ltd. 108. Reliance Industries Ltd. 109. Royal Netherlands Embassy 110. Saket Projects Limited 111. Samir Tech-Chem Pvt. Ltd. 112. Sandvik - Asia Ltd.- Pune 113. Sawant Pumps Pvt. Ltd. 114. SD Fine Chemicals Ltd. 115. Search Chem Industries 116. Shankar Dyes & Chemicals 117. Shiva Scientific Glass (P) Ltd 118. SIKA India Pvt Ltd 119. Sky Lab Environmental Laboratory 120. Somaiya Organo Chemicals Ltd. 121. Southern Petrochemical Industries Corp. Ltd. 122. Sterling Auxiliaries Pvt Ltd 123. Sun Pharmaceuticals Industries Ltd. 124. Supreme Petrochem Ltd. 125. Swan Environmental Pvt Ltd 126. Tata Energy Research Institute 127. Tata Infomedia 128. Technicom - Chemie(India) Ltd. 129. The Federation of all India Dyes & Chemicals Merchants Association 130. Thermax Limited 131. Thomas Baker (Chemicals) Ltd. 132. Torrent Pharmaceuticals Ltd. 133. Uhde India Limited 134. Unichem Laboratories Ltd 135. Unique Pharmaceutical Laboratories 136. United Phosphorus Ltd. 137. UOP India Pvt. Ltd. 138. USV Ltd. 139. Vasudha Pharma Chem Ltd 140. West Bengal Industrial Devp. Corp. (WBIDC) 141. Wika Instruments India Pvt. Ltd. 142. Wockhardt Ltd 143. Yog International Ltd. 144. Yogeshwar Chemicals Ltd Courtesy: FICCI

 
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