The chemical manufacturing industry is one of the oldest industries in India, contributing significantly to the nation's industrial and economic growth. Due to its numerous forward and backward linkages, it is known as the backbone of industrial and agricultural development of the country. It is also a building block for many other downstream industries.
In the past decade, the chemical manufacturing industry of India has witnessed robust growth and has been ranked sixth most significant in the world and third largest in Asia. The chemical manufacturing sector of India is expected to see substantial growth of 13 to 14% over the next five years, while the petrochemicals are expected to see an increase of 8.29 % over the same period. With this growth rate, the Indian chemical industry is expected to reach$304 bn by 2025.
The chemical manufacturer industry of India is seen as the critical growth element of the Indian economy. The Indian government for the chemical sector allows 100% FDI. Most of the chemical manufacturers in India have been delicensed except life hazardous. The chemical manufacturer industry of India contributes about 16% of its GDP, which is targeted to increase at least 25% by 2025. The largest consumer of the chemical manufacturing industry in India, is the nation itself, consuming about 33% of its output. With the rising growth of chemical Industries, this internal consumption is also set to rise.
Characteristics of the chemical Manufacturers in India
Some of the characteristics of the chemical manufacturers in India are-
• They have a small scale of operation
• They have got a high degree of fragmentation
• To focus on the domestic market, they pay limited emphasis on exports
• With the per capita increase in consumption, they have got potential for high domestic demand
• They have got Cost competitive R&D facilities as compared to the other chemical manufacturing companies globally
Sub- Segments of the chemical manufacturers in India
The main growth segments of the chemical manufacturer in India are-
India's primary chemical industry has reached a mature stage.in In the coming, it is expected to grow at the GDP rate. The existence of old plants, from the pre-liberation, ers present in the sector is the biggest challenge for its sub-sectors. This results in the chemical companies having a constrained capacity to compete in the global market. Also, due to the fluctuations in the market, the cost of raw materials is considerably high.
Some of the well-performing sectors of the primary chemical industry in India is-
• Petrochemicals - with the increase in per capita consumption of petrochemical derivatives, the industry undoubtedly has immense potential. It comprises polymers, fiber intermediates, synthetic fibers, and plastic processing. All the products have got a white application not only in the domestic market but also in the industrial sector. Currently, e domestic per capita consumption of petrochemicals is only a fraction of the world level. However, the two main segments of petrochemicals polymer and fiber intermediate are expected to you have a massive demand in the coming time.
The petrochemical industry faced a setback in 2008 due to a surge in the price of crude oil. However, it is now growing at a CAGR of 10% and is likely to reach USD 100 billion by 2022.
Some of the chemical manufacturers in India producing petrochemicals are ONGC, GAIL, BPCL, Reliance India Limited, Haldia Petrochemicals.
• Chlor-alkali- It is the oldest and most significant segment of the inorganic chemical industry in India. The sector comprises liquid chlorine, soda ash, and caustic soda. Chlorine is widely used for manufacturing paper and pulp, Ethylene Dichloride, used for producing PVC, chlorinated paraffin wax, fertilizers, and pesticides. India has gotten an abundant amount of caustic soda and chlorine to meet domestic demands.
Soda Ash is used as a raw material for various downstream Industries like soap, glass, detergents, specialty chemicals, silicate. In addition to this soda, Ash is also applied for chemical change mitigation and environmental management applications like Flue-gas Desulphurization, mitigating the impact of acid rain on inland water bodies.
There are five chemical manufacturers in India manufacturing soda Ash. One of the manufacturing units is located in Tamil Nadu why the best four found in the state of Gujarat with a total extent capacity of 3.16mn tonnes. The reason behind most of the industries being established in Gujarat is the availability of vital raw materials: salt and limestone.
In Asia, India has been ranked as the 4th largest producer of pesticides in the world and 3rd largest producer of pesticides. Over the past 5 years, the Indian pesticide industry is consistently increasing at a rate of 8 to 9% per annum. Some of the major chemical manufacturers in India producing inorganic chemicals are Tata Chemicals, IFFCO, National Fertilizers Limited, RCF.
The specialty chemical companies in India manufacturers chemicals of relatively high value. These specialty chemicals are then used for their application for performance-enhancing properties. The specialty chemical companies in India are highly fragmented and mainly occupied by domestic demands. They account for about 5% of the universe of chemicals.
Some of the leading specialty chemical companies in India are Akzo Nobel, Dow, Du Pont, and Mitsubishi. The sector follows the growth of significant key and markets and is expected to grow subsequently with the increase in demand and per capita consumption.
• Pharmaceuticals and Bulk Drugs- this chemical manufacturing sector in India was established in mid-1970 by the national industry, which court accelerated in the next decade. With the considerable manufacturing sector, India is in a position to meet three fourth of its requirement of bulk drugs and almost entire demand of formulations. The turnover of the industry has increased from INR 100mn in 1947 to INR 280,000mn.
The diverse chemical manufacturing companies in India are set to serve every industry in the market. The chemical manufacturing companies of India meets the needs of Indian chemicals and exceeds international standards and are also in high demand in the foreign markets.
- Many machine learning models are not able to understand the difference between e.g. units, and will naturally apply more weight to features of high magnitudes. This can destroy an algorithm’s ab