1. Indian Chemical Industry
Pallavi Kate
December 23, 2011

2. 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.

3. 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 Kolkata
Sindri fertilizer plant near Jodhpur in Rajasthan
Petroleum refining (Tiny one) in Digboi, Assam

4. Indian Chemical Industry Scenario
Chemical Industry is an important constituent
of the Indian economy. Its size is estimated at
around US$ 35 billion approx., which is
equivalent to about 3% of India's GDP.
Chemical industry is a significant contributor to
the Indian economy, accounting for 11% of
total industry output and 13% of Gross Value
Added by the manufacturing sector in FY10.
The industry contributes to 10% of India's total
exports and is a net earner of foreign
exchange. It is also a significant employment
generator and participation field for small and
medium scale industries (SMEs). The size of
India's chemical industry was approximately $
83 Bn in FY10, and could grow at 15% annually
to $ 330 Bn in 2020 in the most likely scenario,
outpacing the GDP growth rate.
The growth is expected to be driven by rising demand in end-use
segments and rising exports fuelled by increasing export competitiveness.

5. Indian Chemical Industry Scenario
FACTS OF INDIAN CHEMICAL INDUSTRY
•13% of the total export
•13% of the total industrial output & 7% of the
GDP
•G10 % - 12 % growth per annum
•2% of global chemical industry
•2 Indian pharmaceutical industry ranks 4th in
volume & 13th in term of value in the world.
•India – a strong player in the generic
pharmaceutical market
•pIndia – 2nd largest producer of
agrochemicals in Asia

6. Indian Chemical Industry Segments

7. Major Players Of Drugs & Pharmaceuticals
Ranbaxy Shasun Cipla
Dr. Reddy's Lupin Cadilla
IPCA Sun Wockhardt
Aurobindo Kopran

8. 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

9. Major Players Of Pesticides, Fertilizers &
Agro-Chemicals
India:
United Phosphorus Rallis Excel Industries
• MNC:
Hoechst Agrevo Novartis
Bayer

10. Major Players Of Speciality & Fine
Chemicals
•Paints –
Asian Paints Nerolac ICI
Courtalds Jenson & Nicholson
•Dyes & Intermediates –
Color Chem (Hoechst) Clariant
•Inks –
Coates Hindustan Inks

11. SWOT ANALYSIS Of Indian Chemical
Industry

12. Global Chemical Industry Fy 10
Sector USD Bn % Share
Speciality Chemicals 740 22
Agrochemical 50 1
Biotechnology 180 5
Base Chemicals 1525 45
Pharmaceuticals 900 27
Total 3395 100

13. Indian Chemical Industry Fy 10
Sector USD Bn % Share
Speciality Chemicals 15 18
Agrochemical 2 2
Biotechnology 2.5 3
Base Chemicals 43.3 53
Pharmaceuticals 20 24
Total 83 100

14. Trend In Export Of Major Chemicals From India
Group Inorganic Organic Dyeing, Tanning Pesticides
Chemicals Chemicals and coloring
matter
2001-02 1259 7624 2436 1356
2002-03 1946 10190 2943 1487
2003-04 1949 12975 3112 1746
2004-05 2871 16269 3111 2096
2005-06 2431 21504 3750 2791
2006-07 3629 25950 4562 2877
2007-08 3317 28870 5327 5969
2008-09 5166 34058 5900 8615
2009-10 4540 35241 4328 8611

15. Trend In Import Of Major Chemicals From India
Group Inorganic Organic Dyeing, Pesticides
Chemicals Chemicals Tanning and
coloring matter
2001-02 5730 8795 1138 362
2002-03 5579 10695 1344 287
2003-04 5916 14363 1617 501
2004-05 8130 18785 1878 712
2005-06 10446 22776 2245 754
2006-07 11473 27330 2720 806
2007-08 11393 32642 3031 7357
2008-09 - - - -
2009-10 16270 44505 4328 11579

16. Organic Chemical
Methanol

17. Trade Analysis For Methanol
Production 0.24
Import 1.06
Export 0.01
Comnsumption 1.3

18. Methanol – Market Outlook

19. 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.

20. References
http://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
http://4.bp.blogspot.com/_uX1ULPKCpHc/SY1J96g9FEI/AAAAAAAAAu4/wgq_QFxrCp4/s1600-h/im