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