Chemical Industry In India – Market Overview
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Chemical Industry in India – Market Overview

Overview:

  • Total US$30.59 Billion during 2005-2006 as per March 2007 report*.
  • Contributes to 3% of GDP in the same report*.
  • One of the fastest growing sectors of Indian economy.
  • Chemical Industry in India is fragmented and dispersed - multi product and multi faceted.
  • Chemicals sold directly to large customers and through distribution channels. Distribution channels mostly consist of stockists and dealers spread all over India addressing small segments and retail market.

 

Major Segments:

Chemical Industry is highly heterogeneous with following major sectors:

     Petrochemicals

    Inorganic Chemicals

    Organic Chemicals

    Fine and specialties

    Bulk Drugs

    Agrochemicals

    Paints and Dyes

 Chemical Industry Structure:

     Highly fragmented and widely dispersed.

    Western India accounts for 45-50% of total Indian chemical Industry.

    Large players in bulk chemicals. Both large and small players in Fine  and Speciality chemicals.

    Presence of many multinational companies also.

 Foreign Trade:

India was a net importer of chemicals in early 1990s , but has now become a net exporter due to reduction in Imports because of implementation of many large scale petrochemical plants like Reliance etc. and also because of tremendous growth of exports in sectors like bulk drugs and pharma, pesticides, dyes and intermediates.

 Basic Chemicals Export did exceedingly well...

Exports by the basic chemical sector in 1995-96 surpassed the target of Rs 6,742 crore by reaching a figure of Rs 7,979.30 crore and showing a massive growth of 24% over the preceding year's figure of Rs 6,403.90 crore. During 1994-95 exports totaled Rs 6,403.90 crore against the target of Rs 5,504.60 crore, while in the preceding year shipments reached Rs 4,904.40 crore against the target of Rs 4,584.00 crore.

 The drugs and pharmaceuticals and the organic/inorganic/agro-chemicals contributed as much as 63% of total exports. This has been a herculean task, which has been achieved by competing with big multinational corporations of the world. Turnover for the year ended 1998-99 is close to Rs.15,000 crores.

 More information at: http://chemical-industry.made-from-india.com/

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