Sector News

India's chemical industry set to touch $214 bn by 2019

October 29, 2015
Chemical Value Chain

India’s chemical industry is likely to touch US $ 214 billion (approx Rs 13,91,000 crore) in the next 5 years from US $ 139 (approx Rs 9,03,500 crore) in fiscal 2014 with estimated growth of around 9 per cent per annum amid growing demand scenario.

A Tata Strategic Management Group study noted that factors such as boost to specialty chemicals and pharmaceuticals segment, low per capital consumption including agrochemicals, likely growth in demand from paints, textiles and diversified manufacturing base would act as key driver for the growth of the sector.

Manish Panchal, Practice Head — Chemical & Energy, Tata Strategic Management Group, said , “The Indian chemical industry is an integral component of the Indian economy and has the potential to grow at ~9 per cent per annum to reach $214 billion by 2019. Key imperatives for the growth of chemical industry are to secure feedstock, right product mix and identify partnership opportunities to gain capital and technology support.”

The report outlines the demand-supply scenario over the next 5 years and also the key growth drivers.

Presented at the FICCI-organised IndianChem Gujarat Conclave 2015, the report titled “Chemicals – A way of life” was released by Gujarat chief minister, Anandiben Patel at Mahatma Mandir here.

The demand growth will be primarily driven by domestic consumption because per capita consumption of most of the chemicals is much lower than global averages.

Moreover, with a very strong outlook for the key end user industries the demand of chemical products is expected to surge in the coming years, the report noted.

Also, the report projects robust growth of consuming sectors till fiscal 2025. As per the report, the market growth of packaging industry is likely to be 15 per cent per annum, while Construction sector is likely to grow by 16 per cent, auto industry at 12 per cent and apparel sector at 10 per cent.

The report also highlights critical issues the chemical industry is facing today like, availability of key feedstock, infrastructure status, scale of operations, access to technology, energy security and ease of doing business.

Source: The Hindu Business Line

comments closed

Related News

May 21, 2022

Sika opens new manufacturing plant in Bolivia 

Chemical Value Chain

Sika AG (Baar, Switzerland) has opened a new plant in Santa Cruz de la Sierra, thus doubling its production capacity for mortar and concrete admixtures in Bolivia. With this new facility in one of the country’s main industrial agglomerations, Sika is positioning itself for continued growth in the dynamic Bolivian construction market.

May 21, 2022

Chevron increases renewable fuel market share with REG acquisition

Chemical Value Chain

Chevron Corporation (NYSE: CVX) and Renewable Energy Group, Inc. (NASDAQ: REGI) (REG) announced on Monday a definitive agreement under which Chevron will acquire the outstanding shares of REG in an all-cash transaction valued at $3.15 billion, or $61.50 per share.

May 21, 2022

Lotte Chemical to invest $8 bn on hydrogen energy, battery materials by 2030

Chemical Value Chain

Lotte Chemical Corp. will invest 10 trillion won ($8 billion) on hydrogen and battery materials through 2030 to achieve annual revenue of 50 trillion won and carbon neutrality. The Korean chemical producer on Thursday unveiled its new corporate vision outlining key corporate strategies with focus on growth through hydrogen energy and battery materials businesses.