Presenting the overall profile of the Chemical and petrochemical sector, this presentation highlights the current scenario of the industry, policy intervention, advantages of the industry and current business opportunities

1. Chemicals and Petrochemicals
Sector Profile

2. India scenario

3. ChemicalsSector:India Scenario
For FY14, Chemical industry's current turnover was about USD 144 billion which
constituted2.11% of the national GDP
0
2000
4000
6000
8000
10000
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
7423 7651
9107 9395 9440 9627
Production of major chemicals
(000'MT)
Production of major chemicals (000'MT)
68%
9%
17%
2%
3%
Production share of major chemicals
FY15
Alkali Chemicals
Inorganic
Chemicals
Organic
Chemicals
Pesticides
Dyes & Dyestuffs
• Indian chemical industry ranks 3rd largest in Asia and 6th in the worldby output
• Total production in the Indian chemical industrywas 9,627MT in FY14,a 2 percent rise overFY13
• With 68 percent ofthe total productionshare,alkali chemicalsform the largest segment in the Indian
chemical industry
• India’s growing percapita consumptionand demandforagriculture-related chemicalsoffers huge scope
ofgrowth forthe sectorin the future
• In India, consumptionofpetrochemicalproducts is stillone ofthe lowest in theworld; hencethere is a
huge untapped potentialin this sector
Source: Department of Chemicals & Petrochemicals, Govt. of India

4. Segments & characteristics of India’s
chemicals sector
Key segments of IndiaChemicalIndustry
Base chemicals
Petrochemicals, man-
made fibres, industrial
gases, fertilizers, chlor-
alkali and other organic
and inorganic
chemicals
Specialty
chemicals
Dyes and pigments,
leather chemicals,
construction chemicals,
personal care and other
specialty chemicals
Pharmaceuticals
Active
Pharmaceutical
Ingredients (APIs)
and formulations
Agrochemicals
Insecticides,
herbicides,
fungicides and
other crop
protection
chemicals
Biotechnology
Bio-pharma, bio-
agri and bio-
industrial
products
Characteristics of India Chemical
Industry
High
domestic
demand
potential
Focus on new
segments such
as specialty
and knowledge
chemicals
Gujarat and
Maharashtra
have emerged
as most
favored zones
Fragmented
industry
Increase in
focus on
R&D
Source: KPMG, TSMG

5. Chemicals Exports and Imports
Exports have been rising over the year but still India is a net importer ofchemicals
0
2
4
6
8
10
12
14
16
18
6.3
7.7
9.1
11.2 11.4
13
16.1
12.4 12.6 12.7
Chemical exports of India (USD billion)
Chemical exports of India (USD billion)
0
5
10
15
20
25
7.5
8.8
11.3
15.6 16
19.5
24
10.1
18 19
India's chemical imports (USD billion)
India's chemical imports (USD billion)
• Total exports ofchemicalsgrew from USD6.3 billion in FY06 to USD 12.7 billionin FY15
• India has been a majorimporterofchemicals; the sectormadeup 7.6 percent ofIndia’s total imports in
FY15
• Total importsofchemicalsgrew from USD7.5 billion in FY06 to USD 19.0 billion in FY15
• In 2015-16, organicchemicals constituted 44.05per centof India’s total chemicalexports, followed
by dyes &dyestuffat 18.07 percent
Source: FICCI, Department of Chemicals & Petrochemicals – Gov. of India

6. Gujarat scenario

7. Gujarat: Hub for chemical industry
Gujarat, the hub of chemical industry inIndia, accounts for 62 % of India’s petrochemical production,
35% of other chemicals productionand 18% of India’s chemical exports
• The chemical industry in Gujarat is a significant component of State's economy with revenues at ~ INR
4,50,000 crore in 2012
• Gujarat's chemical & petrochemicals industry comprises of about 500 large andmedium scaleindustrial units,
about 16,000 of smallscale industrialunits and other factory units
• Government support, worldclass infrastructure,strategic location,availability of skilledworkforceandraw
material makes Gujarat a preferredlocationforchemical plants
• Over 6500 chemicals & petrochemicals are produced inthe state
• Largest supplierof bio fertilizers, seeds, urea andotherfertilizers
• Also Gujarat has taken the leadto promote environment friendly practices throughEffluent Treatment Plant;
currently 28 suchplants are operational andfurther 6 are proposed
Source:FICCI, Department of Chemicals & Petrochemicals – Gov. of Gujarat;GPCB
91%
58% 51% 50%
42% 38% 35%
Soda ash Polymers Acetic acid Ethylene Caustic Soda LAB Methanol
Gujarat’s share in India’s production ofmajor chemicals

8. Chemicals and Petrochemicals complexes
Refineries
(93
MMTPA)
IOCL
RIL
Essar
Chemical
and LNG
terminal
(20
MMTPA)
Petronet
LNG
terminal
Dahej
LNG
Hazira
Chemical
port
terminal
Dahej
Petroch
emical
complex
es
IPCL
RIL
ONGC
Chlor
Alkali
plants
GACL
IPCL
UPL
Shriram
Atul
Indian
Rayon
Soda Ash
plants
Tata
Chemicals
Gujarat
Heavy
Chemicals
Nirma
Saurashtr
a
Chemicals
Dhrangad
hra
Chemicals
Chemical
Fertilizer
plants
IFFCO
UPL
GSFC
GNFC
KRIBHCO
Agro
Chemicals
Baroda
Agro
Aristo
Biotech
Super
Crop Safe
Ltd
Excel
Crop Care
Some of the largest chemicals & petrochemicals complexes ofWorldare present in Gujarat

9. Petroleum, Chemical & Petrochemical
Investment Region (PCPIR)
PCPIR is a specifically delineated Investment Regionplanned for the establishment of
productionfacilities for petroleum,chemicals and petrochemicals
Abundance
of Natural
Resources
Quality
Resources
Legal
Framework
Well Defined
Infrastructure
Export
Promotion
Measure PCPIR:
Unique
Selling
Proposition
Location
• Spread over453 sq km ofbrown-field area in the coastal belt ofGulfof Khambhat in BharuchDistrict
• Vicinity ofotherexisting GIDC chemicalestates,viz. Jhagadia, Ankleshwar, Panoliand onsitechemical
port terminal &LNG terminal at Dahej
• The proposed SEZ in PCPIR includes, petrochemicaland downstream petrochemicalindustries,synthetic
organic chemicals, industrial gasproducingindustry, packaging industry, shipbuilding/fabricatingunit
and othersmall chemical industries
Source: Gujarat Industrial Development Corporation

10. PCPIR Advantage
Export
promotion
measures
Chemical port
terminal and chemical
storage facility at
Dahej
Well
established
infrastructure
Notified and
Operational Dahej SEZ
Quality workforce,
peaceful labour, least
man days lost
Regulatory
Framework
Gujarat SIR Act, 2009
Gujarat SEZ Act 2004
Notified Area Authority
under GIDC Act, 1962
Gujarat Town Planning
and Urban Development
Act, 1976
Gujarat Infrastructure
Development Act, 1999
Availability of
natural
resources
Concentration of
Petroleum, Chemical
and Petrochemical
estates across the
district
Rich natural resources
and feedstock
availability
Source: Gujarat Industrial Development Corporation
Location advantage Road and rail Airportconnectivity Support infrastructure
• With a capacity of 35
MMTPA, Dahej port is
present in the region*
• The anchorage is at a
distance of 5 km from
the old port and 6 km
from a container
terminal in Jageshwar,
Bharuch
• National Highway 8
passes through the
district, connecting it
with Ahmedabad (182
km) and Mumbai (362
km), along with the
DMIC
• Delhi-Mumbai broad
gauge railway line,
Bharuch-Dahej railway
line
• The nearest airport is
present in Vadodara
which is 100 km away
from the region.
• Ahmedabad
International Airport
is 200 km
• LNG terminal, liquid
fuel jetty and solid
cargo jetty
• Two 220 KV power
sub-stations at Dahej
and Vilayat, three 66
KV sub-stations at
Dahej, Luna and
Vilayat
• Water Supply by GIDC
and GWSSB; Gas
Supply by GGCL
*includes Private Port and Captive jetty capacities

11. Policy interventions
GujaratIndustrialPolicy 2015
Thrust Sectors
Plastics
Industrial
infrastructure
Specialty and fine
chemicals
Auto and Auto
Components
Food and Agri Business
Incentives
Various Sector
specific
Separate set of
incentives for MSME
Scheme for
assistance for Start-
ups/ Innovation
HR/Labor
Promotion of labor
intensive industries
Support to young
entrepreneurs
Facilitate Centers of
Excellence and
specialized sectors
for skill
enhancement
Business
Environment
Ease of Doing
Business
Single window
clearance
Market Development
Initiatives
Trade Facilitation
centers
Infrastructure
Facilitation of
Large/ Mega
Projects
Support for
industrial and
connectivity
infrastructure
Improvement of
environmental
infrastructure
Source: IBEF, Gujarat Industrial Policy 2015
•In Chemical Sector, 100% FDI is permissible in India. Manufacture of most chemical products inter-alia covering organic /
inorganic, dyestuffs & Pesticides is de-licensed
•The entrepreneurs need to submit only IEMwith the Department of Industrial Policy & Promotion, Govt. of India.
•Hazardousproducts come under compulsory licensing policy
Licensing
Policy
•Customs Duty on most Organic, Inorganic Chemicals, Pharmaceuticals, Fertilizers and other miscellaneous chemicals is 7-
10% in India
Custom Duty
• Excise duty in Indiahas beenreduced;now to the tune of ~10%Excise Duty
• VAT on most chemicalsreduced to 5% inGujaratVAT Duty
As per Industrial Policy2015, Government of Gujaratprovidessupport fordevelopment ofSEZs, SIRs and Petroleum,
Chemicalsand Petrochemicals Investment Region(PCPIR) to encouragethe investments in chemicals sector.

12. Proposed interventions
The State Government givesthe following incentivesforthe manufacturing units ofSpecialty and Fine
Chemicals:
• Graded interest subsidy forfive years@ 7% forMSMEsand 2% forlarge industrieshavingan
actual investment up to INR 100crores with maximumcap ofINR 25 lakhs (forMSMEs)and INR
50 lakhs (forlarge units)
• An Industrial Park comingup in private area/ GIDC estate(with minimum 25 industrial units)
will be provided incentiveof 50% of total expenditure limited to INR 20 crores
• One time assistanceup to 80%of thetotal expenditure limited to INR 10 crores forthe cost of
plant & machinery testingequipment
• Assistance upto 75%of totalproject cost i.e. building, plantand machinery,civil construction
and otherfixed assets neededforthe project and as approved by SLAC (ifGOI contributionis
available).Assistanceupto 40% ifGOI assistance is not given
• One time assistanceof 70%ofthe total expenditure limitedto INR 30 crores (in caseof
international level CenterofExcellence)
• Mega projectwith an actual investmentof atleast INR 1000 crore providing directemploymentto
atleast 2000 persons will be incentivized on case to case basis as decided bythe State Level
Approval Committee (SLAC)

13. Leading playersand InvestmentOpportunities
PP Filament
Yarn
Acrylic
Fibres
Feedstock
Linkages
Engineering
Polymers
Pigments
and Coating
Products
Bio
Refineries
Textiles
Chemicals
High
Performance
Chemicals

14. Key contacts
IndustriesandMines Department, Govt. of Gujarat
IndustriesCommissionerate
http://www.imd-gujarat.gov.in
http://www.ic.gujarat.gov.in
Gujarat IndustrialDevelopmentCorporation
Energy and Petrochemicals Department, Govt. of Gujarat
http://www.gidc.gov.in
http://www.guj-epd.gov.in

15. THANK YOU
Disclaimer:
Industrial Extension Bureau (iNDEXTb), Government of Gujarat has made every attempt to ensure the accuracy and
reliability of the information provided in this document. However, the information is provided "as is" without warranty of
any kind. iNDEXTb periodically adds, changes, improves or updates the information in this document without any notice. For
further clarification kindly get in touch with Industrial Extension Bureau (iNDEXTb), Government of Gujarat.