The Caustic Soda demand in India grew by 5.3% in FY 2023-24 to reach 43.6 lakh MT and Soda Ash demand increased by over 4% to touch 41.4 lakh MT the same year according to a recent report recently released by AMAI called Annual Industry Review 2023-24.

Capacities of these two major alkalies reached 57.85 lakh MT (Caustic Soda) and 43.96 lakh MT (Soda Ash). From being an importer of Caustic Soda, India has become a net exporter in the last four years. Soda Ash imports continued to inundate Indian markets with imports exceeding 10 lakh MT. PVC imports broke all records, exceeding 26 lakh mt that constituted nearly two-thirds of India’s demand.

Alkali Manufacturers Association of India (AMAI)'s Annual Industry Review 2023-24, containing these and more details on India’s Alkali and Chloro-Vinyl industries. The publication is a comprehensive document providing details on the Indian Chlor-Alkali, Soda Ash, Sodium Bicarbonate, PVC, and CPVC industries. Details include installed capacities, production, demand, supply, exports and imports data compiled country-wise and month-wise. Global and domestic sector-wise consumption patterns and expected expansions over the next few years for various products are also given. Also covered are information related to Hydrogen and Chlorine, the two major co-products of caustic soda production.

AMAI Annual Industry Review FY 2023-24 Snapshot

Caustic Soda: Installed capacity touched 57.85 Lakh MTPA which represents about 5.5% of the global capacity and is expected to grow in line with the country’s GDP. Production increased to 46.13 lakh MT, an increase of 3.1% over the previous year. Capacity utilisation increased to 82%, largely due to higher exports and increased domestic demand. Domestic demand during the year was 43.56 lakh MT, an increase of 5.3% over last year.

Chlorine: Domestic demand during FY 2023-24 was 40.87 lakh MTPA against 39.63 lakh MTPA in 2022-23, an increase of 3.1%.

Hydrogen: Production during 2023-24 was 12,915 lakh Nm³, compared to 12,524 lakh Nm³ in 2022-23, an increase of 3.1%.

Soda Ash: Installed capacity reached 43.96 lakh MT which represents about 6.2% of the global capacity and is expected to grow in line with the country’s GDP. Production decreased to 35.12 lakh MT, a decrease of 5.5% over the previous year. Capacity utilisation decreased to 80% during the year due to high imports. Domestic demand during the year was 41.38 lakh MT, an increase of 4.1% over  the last year.

Sodium Bicarbonate: Installed capacity touched 374.0 KMT during the year. Domestic demand during the year was 312.4 KMT, an increase of 14.7% over the last year.

PVC: Installed capacity marginally increased to 16.36 lakh MTPA which represents about 2.6% of the global capacity. Production decreased to 14.70 lakh MT, by 6% over the previous year. Capacity utilization decreased to 89.83%.

CPVC: Installed Capacity of CPVC was 95 KMT. Production during the year 2023-24 was 40 KMT. Capacity Utilization is 77.5%.

Segments leading demand were textiles for Caustic Soda (~18%), CPW and Chloro-Methanes (together consuming over 32%) for Chlorine, soaps & detergents and glass (together consuming over 72% of Soda Ash) and pipes & fittings (79% of PVC).