Maier Vidorno Altios

CHEMICAL SECTOR OVERVIEW

Statistics, news & updates: everything you need to know about the Chemical Industry in India

Indian Chemical Industry - Maier Vidorno Altios

Summary/Snapshot

Chemical Industry

  • India’s chemical sector (which includes fertilizers and pharmaceuticals) is worth the US $178 billion in 2019 and is anticipated to expand to US $304 billion by 2024-25, with an annual growth rate of 9.3%.
  • The chemical sector accounts for 2.1 per cent of the country’s overall FDI equity inflows.
  • India accounts for ~16% of the world production of dyestuffs and dye intermediates.
  • The Indian chemicals and petrochemicals sector is expected to receive an investment of US$ 107.38 billion by 2025.
  • In India, specialty chemicals account for 22% of the entire chemicals and petrochemicals market. The demand for specialty chemicals is anticipated to grow at a 12 per cent compound annual growth rate (CAGR).
  • Presence of prominent global players, such as BASF, Dow Chemicals, Bayer and others, 100% FDI in the chemicals sector and stringent laws on anti-dumping to drive the Indian chemical market.​

  • With the increasing demand for disinfestation of personal and public places, the chloro-alkali, ethanol, personal care, and surfactant industry are expected to record significant growth in the near future.​

  • ​The government wants to boost ethanol blending to 10% by 2022 and 20% by 2025, from its current level of 1.58 per cent.
Chemical Industry Graph- Maier Vidorno Altios

Growth Drivers

 

  • India’s proximity to the Middle East, the world’s source of petrochemicals feedstock, enables it to benefit on economies of scale.
  • The dedicated integrated manufacturing hubs under Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) policy to attract an investment of US$ 276.46 billion by 2035.

Sub industries

 

  • Agrochemicals
  • Petrochemicals & Polymers
  • Pesticides & Fertilisers
  • Specialty Chemicals

Opportunities

 
  • Specialty chemical firms in India are growing their capacity to meet increased domestic and international demand.
  • With global corporations looking to de-risk their supply chains that are reliant on China, India’s chemical sector has a lot of room for expansion.
  • In April 2021, the Odisha government-approved investment proposals in the metal, cement, chemical, plastic, food processing, and industrial sectors totalled US$ 345.3 million. This is expected to result in the creation of 2,755 jobs.

Challenges

 

  • Inadequate infrastructure facilities
  • High costs of basic raw materials like natural gas and crude oil,
  • High cost of capital
  • Need for technological modernisation of its facilities.

Key Investment Opportunities

 

  • Dyestuff industry 

The dyestuff industry is a significant sub-sector of the chemical industry, ranking second in Asia. It also has a 16 percent share of the global market. It has forward and backward connections to a variety of industries, including paper, textiles, plastics, printing inks, leather, and food. The sub-sector has enormous potential and offers investors a lucrative opportunity.

  • Pesticides industry

India is the world’s fourth-largest producer of agrochemicals. The country ranks as one of the most dynamic generic pesticide manufacturers in the world, with over 45 technical-grade pesticides created in the country. Because it is a net exporter, it makes a major contribution to the country’s foreign exchange basket.

  • Fine & specialty chemicals

India manufacturers use many fine and specialty chemicals that are necessary for improving industrial output. In the rubber sector, these unique compounds are widely used as polymer additives, food additives, pigments, and anti-oxidants.

Recent Developments

 

  • From April 2021-March 2022, exports of organic & inorganic chemicals increased 38.67% YoY to reach US$ 24,313.88 million
  • Agrochemical trends in India: The Indian agrochemicals market was at US$ 846.90 million from April 2020-January 2021. The market is expected to increase at a CAGR of 8.6% between 2021 and 2026 to reach ~US$ 7.4 billion. The government urged players in the agrochemicals industry to come out with new molecules of global standards for the
    farmers’ benefit.
  • Government initiatives such as promotion of small and midsized ‘Sodium Bicarbonate’ and ‘Ammonia’ processing industries in proximity to soda ash manufacturing units is likely to boost demand for soda ash in the country.

Key Players of India

National

  • Tata Chemicals Ltd
  • Pidilite Industries Ltd
  • UPL Ltd
  • Gujarat Fluoro Chemicals Ltd
  • Aarti Industries Ltd
  • Gujarat Alkalies & Chemicals Ltd
  • United Phosphorus Limited

International

  • BASF
  • DowDuPont
  • SINOPEC
  • SABIC
  • INEOS
  • ExxonMobil
  • Mitsubishi Chemical Corporation

Map Clusters

Chemical Map - Maier Vidorno Altios India

We have completed over 8,000 projects worldwide & 1500 projects in India in nearly every business segment.

WINE & SPIRITS / FOOD & BEVERAGES / AGRIBUSINESS / ENERGY & RESOURCES / TRANSPORTATION / INDUSTRY / TECHNOLOGY / LIFE SCIENCES & HEALTH / SERVICES / CONSUMER & LUXURY GOODS / PUBLIC & PRIVATE INSTITUTIONS

/ Ready to start a conversation?

Write to us at info@maiervidorno.com, or Fill the form below and we will get back to you shortly.
×