Growing domestic demand, higher realisations and better exports are fueling the growth of the Indian specialty chemicals industry. The robust performance of the sector prompted specialty chemical manufacturers to ramp up their production capacity to meet the demand. Estimates suggest that Indian manufacturers had earmarked a capex of around Rs 6000 crores in fiscal 2021-22.
While export growth is expected to accelerate to 17 -18%, domestic demand will surge to around 20% due to strong demand from agrochemicals, FMCG, pharmaceutical, textile and other sectors.
Also, the emerging situation looks quite favorable for the sector. With western nations becoming more environment-focussed, production is increasingly getting outsourced to India. The weakened competitiveness of China due to implementation of stringent environmental norms, rising labour cost, and geopolitical issues are helping India to establish itself as an efficient and cost-effective alternative to China, a recent report of CRISIL states. This resulted in increasing India’s share of the global specialty chemicals market to 4% from ~3% between fiscals 2015 and 2021.
In 2019, China was the largest market of specialty chemicals in Asia, accounting for around 38.9% share of the overall market, followed by India with 23.1% share.
Currently, specialty chemicals constitute around 22% of the total chemicals and petrochemicals market in India and the market is expected to increase at a CAGR of 12.4% from the US $32 billion in 2019 to US $64 billion by 2025.
Considering the overall scenario, the Indian chemical companies are betting big on specialty chemicals as there are a lot of export opportunities. However, the sector also faces challenges such as variations in raw material costs and stringent government regulations. The e-conference will brainstorm to prepare a blueprint for future growth.
Key Discussion Points:
• Global scenario and India’s emergence as an alternative
• Strong domestic demand and export opportunities are growth drivers
• Capacity addition, process improvement and development
• Raw material shortage and rising input cost
• Logistic challenges due to inadequate infrastructure
• The way forward
Chemical industry Professional with over 30 years of Industrial Research & Development experience in the field of Synthetic chemistry. Versatile experience of new product development; leading sustainable Innovation; Chemical Regulations and Managing Intellectual property at prestigious institutes like Defense Research & Development Establishment; Jai Research Foundation (GLP Lab of UPL Group); Rallies India Ltd (TATA group); Navin Fluorine Industries (Mafatlal Group) and MNC’s like Sakata Inx (Japan) & Advanced Materials Division of Aditya Birla Chemicals (Thailand ) Ltd. He was holding position of Chairman for Asia Epoxy Manufacturers, Environment Safety & Health forum from 2017-2021. During his Industrial tenure he worked in diverse fields like Agrochemicals, Fine chemicals, Inks & Coatings, High performance & bio-sourced polymers.
Praveen Arya, Application Engineer at Agilent technologies, has a commitment and appreciation for Gas-phase residue applications. In 2005, Praveen Arya completed his M.Sc. in Food Technology from CCS University, Meerut, Uttar Pradesh. After post-graduation, he served as a Senior Analyst at SGS, Gurgaon- a commercial testing laboratory for 6 years and developed expertise in Residue analysis using sophisticated chromatographic instruments such as LCMS and GCMS. After that, in 2011, he joined Agilent Technologies as an Application Engineer where he supported country-wide GCMS customers for resolving application issues and method development.
Praveen has more than 15 years of experience in residue analysis in food and environmental samples using various high end chromatographic and spectrometric techniques (GC, GCMS, GCMS/MS, TDS, Headspace, Purge & trap etc.). His area of specialization includes new analytical method development and validation as per national and international guidelines.