India Organic Chemical Industry Outlook to 2019

Poor infrastructure, high cost of feedstock and under-utilization of installed capacities have acted as a major hurdle in the achievement of optimum operational capacities of plant and machinery.

“The production of organic chemicals market has increased marginally at a CAGR of 3.8% over the years during FY'2009-FY'2014. This growth has been registered also on account of abolishment of Industrial Licensing for various sub sectors except the hazardous chemicals and reduction in the list of reserved chemical items for the production in small scale sector,” a report titled India Organic Chemical Industry Outlook to 2019 by Research and Markets said.

In India, six major organic chemicals, namely, Methanol, Aniline, Alkyl Amines and its derivatives like Formaldehyde, Acetic Acid and Phenol, have contributed a major proportion to the domestic Organic Chemic industry.

Poor infrastructure, high cost of feedstock and under-utilization of installed capacities have acted as a major hurdle in the achievement of optimum operational capacities of plant and machinery. Ensuring feedstock availability, stringent government regulations against cheap imports, skilled manpower and innovating new applications of organic chemicals are the major factors that would drive the growth of this market in the next five years.

The India methanol market has been an import driven as domestic production has not been sufficient to cater domestic requirement. The local production of methanol has inclined at the CAGR of FY'2009 FY'2014. Hence, the amount of imports of methanol in India bolstered at a CAGR of 22.1% during the review period. The wide application base of methanol has triggered its import to India.