ChemicalindustryinIndia:interestingfacts

It gives me immense pleasure to write for the ACC Newsletter and provide me a feel
of responsibility of being a part of the movement which is going to change the face of the
chemical industry in Asia and the world and helping all Asian countries to reap the benefits of
working together.
Interacting more with each other will help all of us in understanding each other better
and the way our markets are growing & the way we are developing new skills can be
anyones dream.
Opportunities are getting generated every day and time is running faster than ever to
react. One has to be more proactive to tap these opportunities.
As in todays world, survival of bigger is no guarantee today but survival of fastest is
a big yes.
Lets start doing our home work and get ready for any business challenges we come
across before our rivals catch us.
Let me take this opportunity to give you some simple basic facts about Indian
chemical industry and I am sure this will help you as a guideline to start working with India.
Members are welcome to contact me for any of their business related issues regarding
India as my company provides consultancy services for chemical industry and I can assure
you that I will provide you my personnel attention to be of any help to you in this regard.
(pankaj.katiyar@dynamicorbits.com)
So now you are ready for the show and here are some interesting facts about Indian
chemical industry:
FACTS OF INDIAN CHEMICAL INDUSTRY
13% of the total export
13% of the total industrial output & 7% of the GDP
10 % - 12 % growth per annum
2% of global chemical industry
Indian pharmaceutical industry ranks 4th in volume & 13th in term of value in the world.
India a strong player in the generic pharmaceutical market
India 2nd largest producer of agrochemicals in Asia
INDIAN PETROCHEMICALS
Domestic market size US$700 million
Fastest growing sector at 15%
Reliance key player in this market

INORGANIC CHEMICALS
Market size US$260 million
Growth rate 9%
4.5% of global market
Mainly used in detergent, glass, soap, fertilizer and alkalis
PHARMACEUTICALS
India ranks 4th In terms of volume & 13th in terms of value.
Domestic market size US$450 million
Indian market is 1.6% of the global market
Domestic market growth rate 8 to 9%
Strong player in generic market--several of the worlds leading drug companies are based in
Indian.
Significant export led growth
AGRO CHEMICALS AND FERTILISERS
Domestic market size US$88 million
Domestic market growth rate 10% annually
2.5% of the global market.
In India, insecticide commands major share 76%.
Globally, herbicides commands major share 48% & insecticide only 29%.
India is largest manufacture of basic pesticide chemicals among South Asia & Africa, next
only to Japan.
SPECIALITY & FINE CHEMICALS
Market size US$860 million
Major used in textile, leather, paper, detergent, rubber,
Paints, polyester, oil & gas.
Growth rate 10-12%.
DYES & PAINTS
Market size US$110 million.
Growth rate 12%
Indian market is 6% of the global market
Major used in
Paints, inks, textiles, polymers.
Highly fragmented market
25 large & medium players holding 50% of the market.
Remaining 50% is with another small 2000 un-organized players

Succes Stories in Fine & Specialty Chemicals

In the pharmaceutical industry, India has demonstrated repeatedly its ability to produce the
latest drugs available in the world cost effectively.
Within six months after Pfizer launched Viagra globally, 3 -4 Indian pharmaceutical
companies had introduced it to India market.

Demonstrated ability to develop and absorb the latest technologies. Examples are given
below :
Rallis manufactures Hexaconazole, a complex Agro-Chemical with purity of 95% with
indigenous technology. The innovator produces this product with 90% purity.
Gharda manufactures Dicamba, another complex Agro Chemical with purity of 95% with
indigenous technology. The innovator of this product produces this product with a purity of
87%.
Other examples include the anti-AIDS drugs including Lamivudine Zidovudine and
Indinavir each of which are being produced in India at a cost which is a fraction of the price
at which these products are being sold internationally.

FOREIGN INVESTMENTS IN INDIA IN RECENT YEARS

Alfa Laval International AB
Astra Pharmaceuticals AB
Pfizer Corporation
Ciba Specialty Chemicals
GE Plastics
Dupont
GE Corporation
McKinseyInternational Flavors and Fragrances
Rohm and Haas
Intel
IBM
Cisco Network
Gaz de France
Baxter International
Daimler Chrysler
Lafarge SA
Rhodia ETC ETC.
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There are many more interesting facts about Indian chemical industry like the geographically
distribution of different kinds of chemical industry, new developments etc, which we can take
later in some other issue of ACC Newsletter.
Till then, cheers and take care.
Pankaj Katiyar
Vice Chairman, ACC
Email: pankaj.katiyar@dynamicorbits.com