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Project on BASF india ltd

Project on BASF india ltd

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Published by: sksrulez on Mar 31, 2010
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1Part AIndustry Profile
CHEMICAL INDUSTRY:Chemical industry is the business of using chemical reactions to turn raw materials such as coal,oil and salt into a various products. During 19
and 20
century technological advances in thechemical industry dramatically changed the economy and created pesticides and fertilizers for farmers, pharmaceuticals for the health care industry, synthetic dyes and fibers for the textileindustry, soaps and beauty aids for the cosmetics industry, synthetic sweeteners and flavors for the food industry, plastics for the packaging industry, chemicals and celluloid for the motion picture industry, and artificial rubber and paints for the automobile industry.
 The chemical industry refers to an industry involved in the production of chemicals. Theindustry includes petrochemicals, agrochemicals, pharmaceuticals, polymers, paints and oleochemicals. Chemical processes are used, including chemical reactions to form new substances,separations based on properties such as solubility or Ionic charge and distillations in addition totransformations by heating and other methods. Chemical industries are involved in the processing of raw-materials obtained by mining and agriculture among other supply sources intomaterials and substances and chemical, compounds that are end products or are used in other industries.
Chemical industries can be traced back to Middle Eastem artisans, who refined alkali andlimestone for the production of glass as early as 7,000 B.C., to the Phoenicians who, producedsoap in the 6th cent. B.C., and to the Chinese who developed black powder, a primitive explosivearound the lOth cent. A.D. In the middle Ages, alchemists produced small amounts of chemicalsand by 1635 the Pilgrims in Massachusetts were producing, saltpeter for gunpowder andchemicals for tanning. But, large-scale chemical industries first developed in 19th century. In1823, British entrepreneur James Muspratt started mass producing soda ash (needed for soap andglass) using a process developed by Nicolas Leblanc in 1790. Advances in organic chemistry in
2the last half of the 19th century. Allowed companies to produce synthetic dyes from coal tar for the textile industry as early as the 1850s. BASF was licensed to operate its organization wasissued on April 27, 1865. the founding Fathers were Friedrich Engehoren. In 1865 he makes hisdream a trail blazing reality. On 6
April he found a Stock Corporation in Mannheim under thename Badische Anilm-Und Soda Fabric.In the 1890s, German companies began mass producing sulfuric acid and, at about thesame time, chemical companies began using the electrolytic method, which required largeamounts of electricity and salt, to create caustic soda and chlorinc. Man-made fibers changed thetextile industry when rayon (made from wood fibers) was introduced in 1914; the introduction of synthetic fertilizers by the American Cyanamid Company in 1909 led to a green revolution inagriculture that dramatically improved crop yields. Advances in the manufacture of plastics ledto the invention of celluloid in 1869 and the creation of such products as nylon by Due Pont in1928. Research in organic chemistry in the 1910s allowed companies in the 1920s and 30s to begin producing chemicals for oil. Today, petrochemicals made from oil are the industry'slargest sector. Synthetic rubber came into existence during World War II, when the war cut off supplies of rubber from Asia. Since the 1950s growing concern about toxic waste produced by chemical industries has led to increased government regulation and the establishment of theEnvironmental Protection Agency (1972), The leakage of toxic chemicals at the Union Carbide plant in Bhopal, India (1984), was the worst industrial disaster in history and heightened publicconcern about lax environmental regulations for chemical companies in developing countries.Beginning in the 1980s, U.S. corporations faced expanding competition from foreign producers,including some Third World oil producers who have set up their own oil refining and petrochemical industries. In 1997 the U.S. chemical industry produced about $389 billionworth of products and employed 1,032,000 workers. It exported about $71 billion worth of chemicals. U.S. chemical industry shipments total about $450 billion annually. The industry is amajor provider of raw materials for consumers, manufacturing, defense, and exports (about 15 percent of the total). End markets include consumer products, health care, construction, homefurnishings, paper, textiles, paints, electronics, food, and transportation. In fact, most industriesuse chemicals as their key raw materials. For example, the auto has about $1,500 of chemicalssuch as paints, lube oils, rubber tyres, plastic, and synthetic fibers a cell phone is feasible because of its use of silicon-based chemicals and a durable plastic assembly; microwave ovensare made with silicon chips, plastic housings, and fire-retardant plastic additives.
3Chemical industry sales and profitability tend to follow the U.S. consumer economy, with peak sales and profits a few years after strong consumer economic growth periods and low pointsduring recessions. While demand growth for the overall chemical industry has slowed since the1960s, it is still better than annual gross domestic product (GDP) gains. Operating margins,wereabout 6 percent in 2000 compared with a peak of almost 11 percent in 1995. Research anddevelopment and capital spending by the industry are about $30 billion each, or just under 7 percent of sales. The fastest growth areas are life sciences, specialties such as electronicchemicals, and select plastics. The overall employment level of the chemical and alliedindustries is over 1 million people, with about 600,000 in direct manufacturing. Most of thechemical industry's basic manufacturing plants are located in the Gulf Coast (primarily Texasand Louisiana) due to the proximity of key energy raw materials. Finished product manufacrure, by contrast, is located closer to population centers on the East and West Coasts and in theMidwest. Its basic Aim is to perform the work by providing Employment Health and Safety tipsto all the employees, contractors, and all the students who visit the Factory, in order to protect theorganization from the environmental pollution.
The Indian chemical industry is one of the fastest growing sectors in the economy. It hasachieved a growth rate of 8.6% over the last few years. With the size of $30 billion it accounts for 12.5% of the country's total industrial production. The size of Indian Chemical industry is aboutRs.l,20,000 cores. The production of Chemical industry during the financial year 2007-2008witnessed growth of 7.6% compared to 2006-2007. This was higher than the overallmanufacturing sector growth of 5.2%. Chemical industry is one of the major contributors toIndia's GDP and has 14% share in Indian manufacturing output. It contributes around 8% of exports from India, and accounts for 11 % of import bill. This amply indicates the important place and role of the Chemical industry in india's industrial as well as overall economicdevelopment and growth.
Indian Chemical Industry Overview:
1. Contributes to 13% of GDP.
2. One of the fastest growing sectors of Indian economy.3. Chemical Industry in india is fragmented and dispersed - multi product and multi faceted.

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