Indian Chemical Industry

ISSN: 2319-5894
Pharma Utility Volume 8, Issue 1- 2, 2014
Brief Report
Indian Chemical Industry: A Potential Chemical Hub for
Exploration at World Market
Authors: Amrit B Karmarkar*1, Avinash D Deodhar1, Aditya A Holikar2
Affiliations:
1. Director, InClinition, Dombivli East, Mumbai Area, India
2. Research Associate, InClinition, Dombivli East, Mumbai Area, India
Email: [email protected] Cellular: +91-8898904115
Introduction of Chemical Industry

Chemicals are the basic necessity of day to day life for creature to survive on earth. The
chemicals whether being natural or synthetic they are helpful to each and every creature for the
survival. Right from the food we eat, clothes we wear or the cars we drive all the things are
significantly based on the chemicals which helps to enhance the quality of life through various
new innovations. The use of chemicals is mentioned from the ancient time to the modern era. As
the development on earth started from the ancient era to modern era for the survival and the
enhancement of the chemicals, their forms and their uses changed. Development of synthetic
chemicals took place by setting up the chemical factory in countries and then export and import
of chemicals from country to country.
As the modern era is concern, the chemical industry has acquired the special attention by
Compound Annual Growth Rate (CAGR) at 5.9% for the revenue generation of $ 3,519 billion
till year 2010. It is expected to grow up to 8.1% generating $ 5,185 billion by 2015(Market Line
Report). The growth is observed due to new advancement of the chemical manufacturing units,
using modern technology and launching of the new products.
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Overview of Indian and Global Chemical Industry

The Chemical Industry is the central to the modern world economy with the typical sales GDP of
around 5-6%. The economic slow-down and recession was observed in the world from the year
2006-2009 due to which the attention of the global chemical industry was completely shifted
towards the eastern part of world. The Asia-Pacific market was wide open for industries to
manufacture and sale. In an around due to economic slow-down in allied countries the Asian
economies resulted in the growth for global chemical sales by 14%.
Due to the rise of the Asian Market for chemicals globally, India is emerging as focused
destination for supply of chemicals. In India Chemical Sector accounts for the 14% in overall
Index of Industrial Production (IIP). India is 3rd largest producer of chemicals in Asia after China
and Japan. India accounts for approximately 7% of GDP by Chemical sector and its share in
National export is around 11%. Despite of its large size and its Export rate being significant,
contribution of India in Chemical Industry worldwide is less i.e. 3%.
History of Chemical Industry

The history of chemical manufacturing is the most interesting part wherein the facts of the
chemicals into the formation of big chemical industry took place. (See Table 1)
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Inventor
Joshua Ward
John Roebuck & Samuel
Garbett
Charles Tennant
Nicolas Leblanc
William Rosh, Wilson
and Bell
Sir John Lawes
Charles Goodyear
Thomas Hancock
William Henry Perkin
Friedrich
Engelhorn
(BASF)
Ernest Solvay
Year
Product
Place
1736 Sulphuric acid

1749 Sulphuric acid
Prestopans, Scotland.
1799 Bleaching powder of

chlorine and slaked lime
1791 Sodium chloride
1816 Sodium chloride and
sodium sulfate (Leblanc
process)
1840 Superphosphate of lime
1840 Vulcanization of Rubber
1856 Aniline
dye
synthetic dye)
1865 Various Dyes.
St
Rollox,
Glasgow,
Scotland.
Saint-Denis, France.
River Tyne, Scotland.
London, England.
Springfield, Massachusetts,
US.
London, England.
(first London, England.
Ludwigshafen, Germany.
1874 Sodium chloride

Charleroi, Belgium.
Sodium carbonate
Calcium carbonate
Friedrich Bayer
1899 Aspirin
Leverkusen, Germany.
Wallace H Carothers
1930 Fibers, Nylon, Teflon, Wilmington, Delaware, U.S.
Freon
(chlorofluorocarbon for
refrigerator)
John Rex Winfield
1941 Polyester
Sutton, Surrey, England.
Table 1: History of Chemical Industry across the world
Segmentation of Chemicals
The development of the chemical manufacturing industry stated from the late 19th century where
the quality and various different form of chemicals were prepared. These different forms of
chemicals were separated in the certain segments like Basic chemicals, Specialty chemicals,
pharmaceutical products, fertilizers and Agrochemicals.
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In all segments of chemicals can be done as follows:

1. Basic chemicals
The term basic chemicals constitute of organic and inorganic products (inclusive of
petrochemicals), plastic resins, synthetic fibers, man-made fibers, dyes and similar materials.
These basic chemicals plays significant role of exporting the organic and inorganic chemicals
and intermediate chemicals.
Indian Scenario
Indian basic chemical Sector produces majority of 6 chemicals i.e. Methanol, Aniline, Alkyl
amines and its derivatives like Acetic acid, Formaldehyde, Phenol. The Inorganic chemicals
having day to day applications are Caustic soda, Soda ash, Sodium Carbonate, Calcium
Carbonate, Liquid ammonia are exported.
Comparison with China
China has the production and export rate of 48.3% in the field of Basic chemicals which is much
higher than that of the India which is 35%. China has acquired the market of basic chemicals due
to their high production and low rate of export.
2. Specialty chemicals
The Specialty chemicals are the groups of relative high value, low volume chemicals known for
performance enhancing properties. It comprises of additives, paints, coatings, soaps and
detergents, fragrances, flavors, oilfield chemicals, paper and rubber processing additives and
catalyst. The specialty chemicals are prepared from the basic chemicals and sold on their basic
functions.
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Indian Scenario
Specialty chemicals sector is fast growing at substantial rate and also has various investment
offers. This will create the high rate of employment and significantly boost the economy of
country.
As per the Market Line report the Specialty chemicals share of china is 24.2% compare to
Indias 24.7%. To increase the productivity, employment of the talented pool of the chemicals
engineers are required. The basic infrastructure with modern technology should be established.
3. Pharmaceutical chemicals
The Pharmaceutical chemicals are the medically Active Pharmaceutical Ingredients and dosage
forms. The demand for the Pharmaceutical products is increasing tremendously day by day
globally to get cure from various diseases.
Indian Scenario
India is the key player in the exporting of the pharmaceutical chemicals. India is considered to be
the major source of the supplying the raw materials, and finished products. In the terms of
production of supply India is the 3rd largest in terms of volume. India markets finished product,
process development, drug formulation, dosage form manufacture and marketing has established
properly and few companies has attended the International standards so the process of growth
has been fast. (JZ Med. Inc April 2012)
China shares the production of the pharmaceutical chemicals of around 21.5%. Compare to
China, Indias production is 25.3% (Market Line Report). Though the China is highest API
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producer and acquires the largest exporter of the API is less recognized as that of the India.
Comparing the China and India the pharmaceuticals products are still slow growing.
4. Agrochemicals and fertilizers
Agriculture is the import sector for the growth of the economy of the country. The
Agrochemicals and fertilizers are vital for the nutritional security of country. Agrochemicals and
fertilizers segment for the chemical fertilizers, herbicides, insecticides, pesticides and other
substances used in field of agriculture.
Indian Scenario
India is the 4th largest producer of the agrochemicals and fertilizers and it is also supplied to
other parts of the world. The Three categories of the Companies exist in India providing the
Agrochemicals and Fertilizers i.e. Multinational, Indian Companies and Small Scale Industry.
The share of the China in Agrochemicals and fertilizers segment is low up to 6% compare to that
if Indias 15%. The development of the Agricultural products and production of the fertilizers
was the due to the global marketing and various involvements of the Multi-national companies
creating the platform for the high productivity of crops.
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Factors Influencing the Growth of Chemical Industry
Setting up the Training center for the new talented pool of chemical engineers.
To learn the art of developing the high quality, low cost manufacturing from lab scale to
ton scale.
Increase the R&D investment to enter the world of innovators.
Install the latest facilities and technologies to fast and large production to meet the
demand of export.
Tax Reduction and other incentives to be provided for flourishing the production rate of
industry.
Development of SEZ and world class infrastructure along with improved facilities of
transportation by railways, roadways and ports.
Conclusion
India has made a considerable progress in the field of the Chemical Industry over the past few
decades. The implementation of the fiscal and financial incentives and ventures have emerged
the industry as the power house of Indian economy. As the favorable infrastructure and
supportive regulatory framework with world class facilities provided to industries, the CAGR
will reach 15% i.e. $ 290 billion by the end of 2017.
How to cite this article:

Karmarkar AB, Deodhar AD, Holikar AA.Indian Chemical Industry: A Potential Chemical Hub
for Exploration at World Market. Pharma Utility. 8(1-2), 2014.

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ISSN: 2319-5894

Pharma Utility Volume 8, Issue 1- 2, 2014

Introduction of Chemical Industry

Overview of Indian and Global Chemical Industry

History of Chemical Industry

1736 Sulphuric acid

1799 Bleaching powder of

1874 Sodium chloride

In all segments of chemicals can be done as follows:

Factors Influencing the Growth of Chemical Industry

Increase the R&D investment to enter the world of innovators.

How to cite this article:

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