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Chemicals & Petrochemicals

Sector Profile
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Gujarat: Economic Snapshot
Gujarat An Enduring Strong Economy
Gross State Domestic Product : USD 45.3 Billion Industrial Growth Rate : 12.5% (2002 – 2007) Exports Per Capita Income : 19.2% of India : USD 722 Inflation Urbanisation : 9.3% : 37.36%

Composition of GSDP as per Economic Activity

Well Balanced Growth across sectors

18.22% 44%

Tertiary

15.99%

P r im a ry S e c t o r S e c o n d a ry S e c t o r T e r t ia r y S e c t o r
GSDP: Gross State Domestic Product

Secondary

17.95%

37.78%

Primary

11.36%

Source: Socio Economic Review 2007-08

Gujarat has exhibited a 12.5% high industrial growth rate from 2002 -2007. In India’s 10th Five Year Plan and has achieved a GDP growth of 10.2% as per the set target, which was the highest amongst all States in India.

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Source: Socio Economic Review 2007-08

Robust Infrastructure
First State to privatize ports
Ports
§ § § 42 ports along 1600 km coastline, including 1 major port at Kandla and 41 minor ports Cost efficient transportation of natural gas, crude oil and petroleum products from Middle East and Europe Landmark projects such as LNG port terminal at Hazira developed by Shell India Limited, Green field port at

Mundra developed by Gujarat Adani Port Limited, LNG terminal at Dahej developed by Petronet LNG Ltd. and Pipapav port developed by Gujarat Pipapav Port Ltd.

Gujarat is well connected to major cities in the USA, EU, Asia and other Indian metropolitan cities
§ 13 airports under the operational jurisdiction of Airports Authority of India (AAI), at Vadodara, Surat, Jamnagar, Rajkot, Bhavnagar, Porbandar, Bhuj, Diu, Mandvi, Mundra, Kandla and Palanpur, including one international airport at Ahmedabad

Airports

Rail & Road

71% of the road in the State is surfaced
§ State-of-the-art road infrastructure such as India’s first National Expressway from Ahmedabad to Baroda. § Total road length is 74, 111 Km § Total length of railways in Gujarat is 5,188 km (8.25% of India)

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000 km for water distribution for irrigation § 75% population proposed to be covered by the grid by 2010 4 . of which 1.354 units whereas India’s average is 665 units § Rich availability of natural gas (34 MMCD) and Lignite (1.200 km.33 m supplying to 18 districts § The pipelines of Gujarat State Petronet Limited (GSPL) supply gas to 13 districts.53.Robust Infrastructure Power Electricity Generation Capacity – 9.200 km is complete and 800 km is under construction Gas Water Only State to carry out interlinking of rivers § An extensive water grid network across the State § The water grid is a network of 75. 5 more districts are proposed to be connected by the pipeline § Total length of Integrated Gas Grid supplying gas to all districts is 2.163.072 MMT) § 24-hour power supply to 98% of the villages Total length of the existing GSPL pipeline is 14.031 MW (2012) § Per capita power consumption is 1.561 MW (2007) and estimated to rise to 14.

class Business Destination To Delhi Banaskantha Bio-Tech Cluster Patan Kutch Mehsana Himmatnagar Soda Ash & Salt Based Industries. Pharma. Cement & Steel Pipes 202 Industrial Estates across Gujarat Petroleum & Brass parts Engineering and Ceramics Soda Ash and Salt Based 18 Captive Ports along 1600 km coastline across Gujarat Gandhinagar Ahmedabad Surendranagar Anand Jamnagar Rajkot Porbandar Amreli Bhavnagar Surat Vadodara Bharuch Junagadh Narmada Kheda Panchmahal Dahod Gujarat International Finance Tec City Knowledge Corridor Industrial Corridor (DMIC) Savli Biotech Park Petroleum. Petrochem. Textiles & Engineering 51 Special Economic Zone (SEZs) across Gujarat Navsari Special Investment Region (SIR) Valsad To Bombay 5 . Chemicals and Petrochemicals Investment Region (PCPIR) Chemicals.Invest in Gujarat : A world.

Gujarat: A Thriving Industrial State Contributing to India’s economy across all major sectors… Population Geographical Area Employees Factorories Net Value Value of Output Fixed Capital Investment Exports Longest Coastline Stock market capitalisation Soda Ash Production Salt Processing Diamond Processing Plastic Industry Petrochemicals Chemicals Groundnut Cotton Pharmaceuticals Sea Cargo Textiles 18% 25% 28% 35% 50% 42.6% 10.50% 6.30% …World’s largest producer of processed diamonds and wall clocks …World’s largest gas based single location sponge iron plant …World’s largest producer of castor and cumin …World’s 3rd largest producer of denim …Asia’s largest grass root petroleum refinery at Jamnagar …India’s largest producer of cotton …India’s first LNG Chemical Port Terminal at Hazira Significant share in key industry sectors & products With 5% of population and 6% of Geographical Area contributes 16% of output Source: Socio Economic Review 2007-08 6 .60% 17% 19.50% 9.90% 14% 15.30% 65% 58% 85% 80% Presence Across Industry Sectors Petroleum products Chemical & Pharma Engineering Food processing Textiles & Apparels Mineral based industries Others 5% 6% 9.20% 22% 30% 98% 34% 23% 17.3% 6.3% 2.

US$ 60 billion generating an employment of 1 million. § India has a robust base of chemicals and petrochemicals-driven businesses. April 2006.4% for the same period § Currently. § Further. per capita consumption of products of chemical industry in India is about 1/10th of the world average.2% in the period of 2004-09. the industry is widely expected to continue its growth performance with a CAGR of 9. Indian chemicals and petrochemicals share has been continuously increasing on a constant basis.The Indian Chemicals & Petrochemicals Industry India ranks twelfth in the world for production of chemicals and petrochemicals by volume. which is equivalent to about 3% of India's GDP.100 2.800 1. § The size of Indian Chemical industry is estimated at around US$ 35 billion approx. Though the industry has undergone drastic changes.. Over the last decade.600 2004 2005 2006 2007 2008 2009 Global Chemicals and Petrochemicals Industry All figures in USD billion Indian chemical and petrochemicals industry to grow to USD 50 billion by 2009 7 . as against the global projected CAGR of 3. the Indian Chemical industry has evolved from being a basic chemical producer to becoming an innovative industry Source: Global Chemicals and Petrochemicals Industry Report.200 2.The total investment in Indian Chemical Sector is approx.700 1. Data monitor 2.900 1.000 1.

Fragmented Cost Advantages Cost Reduction Low export focus Increased use of IT High Domestic Demand Potential R&D Globalization Gujarat Chemical Industry Low levels of R&D Consolidation § While the State chemicals industry exhibits several similarities to the global chemical industry. Government of Gujarat.Gujarat: Chemicals and Petrochemicals Hub of India § Gujarat’s chemicals and petrochemicals industry is one of the fastest growing sectors in the State’s economy and is the leader in the production of chemical and allied products in India. as the Indian markets develop and per capita consumption levels increase Ø High degree of fragmentation and small scale operations Ø Limited emphasis on exports due to domestic market focus and smaller scale of operation Ø Low cost competitiveness as compared to the other countries industry Focus on core business Source: E&Y Analysis Source: Industries Commissionerate / iNDEXTb. At the industry level. The industry offers a wide spectrum of opportunities for the investors both from India and abroad. 2007 8 . dyes and intermediates. there are several characteristics specific to the Gujarat across sub-segments. § The well diversified chemical industry has complete portfolio of chemical products including petrochemicals and downstream. Gujarat chemical industry is characterised by: Ø High domestic demand potential. pharmaceuticals.

048 (‘000 Tonnes) of petrochemical products and also contributes around 62% to the total production of the country. Ministry Of Chemicals & Fertilizers Government Of India. Shell. GE Plastics. MP. HP.51 billion and USD 320 million respectively § Bulk of exports in this sector go to markets such as USA. Industries Commissionerate. D&NH. Rajasthan. Gujarat contributes 15% of the total national chemical exports § Over 770 large and medium scale units and about 310. Gujarat Maharashtra West Bengal Other States 15% 61% 11% State Wise Share In Production Of Selected Major Chemicals (2006-07) 23% 4% 6% 8% 8% Gujarat Tamil Nadu Maharashtra Punjab 51% Uttar Pradesh Other States State wise Production Of Petrochemicals (2006-07) 13% *Other states include Andhra Pradesh. UP and Uttaranchal Source: Performance Of Chemical & Petrochemical Industry At A Glance (2001-2007). Orissa. Europe and other developed nations – a clear sign of the global competitiveness § Gujarat has been the ideal destination for several leading MNCs including BASF.000 crore. Assam. * Haryana. Punjab. GoG 9 . Perstrop. Huber. DuPont.000 small scale units are present in the State with fixed capital investment of USD 13. Solvay. Bayer. Kerala. Chhattisgarh. Karnataka. British Gas. § Petrochemical Industry in Gujarat produces 13. Cairn Energy. TN.Gujarat’s Strengths § The chemical industry in Gujarat is a significant component of the State’s economy. contributing to more than 51% of Indian production of major chemicals with revenues at approximately more than INR 12. Heubach Colours and Cheminova.

25 0. BASF.9 Share of Gujarat 31% 38% 30% 10% Soda -ash Caustic Soda Nitrogenous Fertilizers Phosphatic Fertilizers Salt Dyes & Intermediates 0.1 35.60 0. About USD 650 million of investment. Ranbaxy .6 7. Novartis .000 barrels per day ) ) Other Key Investors: Rallis India. Bayer.20 10.5 50% Ethylene Polymers Agrochemicals 0. Zydus . IPCL. India s first joint sector ’ ’s first joint sector industrial complex Reliance: Refinery at 27 million State of the art Petroleum Jamnagar tonnes with a capacity of per annum (540.80 India 75.5 32.6 40% Methanol Acetic acid Source: Annual Survey of Industries (ASI) Source: CMIE Gujarat Contribution to India Share of Gujarat 100% 41% 20% 38% 85% 50% 56% 37% 50% Hot Beds for Leading Players Anchor Industries GSFC: Diversified Fertilizer and Chemical product portfolio.Gujarat’s Strengths Gujarat : Chemical & Petrochemical Industry Gujarat Chemical Production All figures in USD billions Chemicals & Petrochemicals § Refined Petroleum Products § Basic Chemicals § Rubber & Plastics Gujarat 23. etc. IFFCO. The State has the largest grassroot petrochemical refinery in the world 10 .60 12. Cadila .80 1. Alembic.

The high growth in domestic economy is driving demand for a large number of products that are in turn driving the demand for commodity chemicals based products. as these costs account (on average) for more than 60% of a commodity chemical producer’s cost structure • Cyclicality. either through export activity or in-country production • Technological advantage. and raw material costs.Gujarat: Flourishing Chemicals and Petrochemicals Industry Commodity Chemicals § Gujarat has inherent strengths in the area of commodity chemicals. feedstock. especially China • Stringent environmental regulation Strategic Impact • Improved performance of producers with greater backward integration • Global expansion to capitalise on inherently lower-cost and/or higher growth markets Advantage Gujarat • Low-cost manufacturing base • Scale and operational efficiency • Global reach. currently moving toward the next peak • Low-cost production from Middle East is likely to have a growing impact • Global migration of customer base to emerging markets. potential for licensing process technologies Source: E&Y Analysis 11 . The Figure below illustrates the key dynamics of the commodity chemicals segment. Global scale plants located in the State offer competitive opportunity for exports. Dominant Issues • Exposure to high and volatile energy.

Hico Products and Balmer Laurie. Dominant Issues • Exposure to high and volatile energy. paints.Gujarat: Flourishing Chemicals and Petrochemicals Industry Speciality Chemicals § Speciality chemicals is extremely service intensive and demands technical expertise in applications engineering and customer servicing. Strategic Impact • Strong emphasis on R&D and new product commercialization • Restructurings control efforts • Global expansion to capitalize on inherently lower-cost and/or higher growth markets and other costAdvantage Gujarat • Fit within existing portfolio • Proven R&D effectiveness. especially China • Stringent environmental regulation generation capacity • Global reach. as these costs account (on average) for nearly 35% of a specialty chemical producer’s cost structure • Less pronounced cyclicality than commodities. textile and rubber sectors have fueled the demand for speciality chemicals in Gujarat. either through export activity or in-country production Source: E&Y Analysis 12 . Clariant India. but still impacted by economic trends • “Commoditization” of specialties • Global migration of customer base to emerging markets. Major players in the speciality segment in the State include Ciba Speciality. Foseco. and raw material costs. intellectual property licensing portfolio and/or that other may offer revenue feedstock. Growth of oil.

Sulphuric acid and Bio-fertilisers Methanol. Alkylated Anilines & Toluidines.2 IPCL BASF Lanxess ABS Ltd GE GSFC Gharda Chemicals 13 . Butadiene. Catsol. Fluoro Compounds. Ammounium Nitrophosphate Caustic Soda (Lye. Liquid Chlorine. Orthoxylene. Compressed Hydrogen Gas. Gujarat has a total capacity of 1180 KTA. Prills). Aluminum Chloride Anhydrous etc Nitro Benzene. HCL. Potassium Carbonate. Calcium Ammounium Nitrate . Agrochemicals Benzene. Petrochemicals and Chemicals Company GSFC GNFC GACL Aarti Group IPCL Deepak Nitrite Key Products Caprolactum. dyes intermediates and fine and specialty chemicals Company RIL Petrochemicals: Polymer Industry Location Jamnagar Hazira Baroda Gandhar Gandhar Baroda Baroda Baroda Panoli Polymer PP PP/PE/PVC/PET PP/PE/PVC PE/PVC GP/PS/HIPS ABS/ SAN Engineering Plastics PA. § The major driver for the growth of chemical and petrochemicals industry in the State has been the availability of feedstock. Methyl Acrylate. PMMA PSu Family/ PEEK Capacity (KTA) 1030 1380 295 405 90 92 12 7 2. Anhydrous Ammonia. rubber chemicals intermediates. Caustic Potash (Lye. Ammounium Nitrate. Methyl Ethyl Ketoxime. Ammonium Sulphate. Melamine. Nylon-6. Nitrobenzene. Butyl Acrylate. Sodium Hypo Chloride. Agro-chemical intermediates. Poly Aluminum Chloride. Ammounium Sulphate . Gujarat has a total of over 1230 KTA of ethylene capacity and 1475 KTA of propylene capacity respectively. There is an increase in the capacity build up in the State. Nitiric Acid.Methyl Formate. Flakes. Aniline. pharmaceuticals intermediates. Chloro Phenols. Single Super Phosphate. Caustic Soda. Calcium Carbonate. Urea. § Gujarat has the highest share of polymer production in the country. Diammounium Phosphate . Flakes). Toluene Di-isocynate. Chlorine and Acrylonitrile Sodium Nitrite and Nitrate. Urea.Gujarat: Flourishing Chemicals and Petrochemicals Industry § With three cracker complexes.

Industry Value Chain Chemical Industry Value Chain Storage. Packaging & Distribution Raw Materials Intermediate ‘Building Block’ Synthesis Functional Chemical Synthesis Value Addition & Processing Finished Intermediate By Products Business Support Services Source: Ernst & Young Analysis 14 .

Industry Value Chain Upstream Processing Petrochemical Industry Value Chain Exploration & Development Hydrocarbon production Shipping Refining & Blending Downstream Processing Storage Distribution Market Polymers Fiber Intermediates Rubber Chemicals Plastics Source: Ernst & Young Analysis 15 .

Coating Products Refinery Downstream Projects Mineral Resource based Projects Specialty Chemicals Nanotechnology Based Projects Bio Refineries Source: Ernst & Young Analysis 16 .Focus Areas High Performance Chemicals Engineering Plastics Pigments.

Sachin.P&O at Mundra & Maersk at Pipavav § Mundra & Pipavav .5 MMT (12% of India) § Cargo Handled by other ports is 89. Nandesari. Surat. Government of Gujarat and CMIE . Vapi § 6 Treated effluent conveyance pipelines: Ahmedabad.2 + 30MMT) IOC RIL Essar • 5 Petrochemical Complexes IPCL RIL ONGC IFFCO GSFC GNFC KRIBHCO Baroda Jamnagar Jamnagar Baroda & Dahej Hazira & Jamnagar Dahej Kalol & Kandla Baroda & Jamnagar Bharuch Hazira 17 Source: Industries Commissionerate. Vapi* (* ISO 14001 Certified) § Incinerators for Hazardous industrial waste: Nandesari. Naroda.000 MT) GACL IPCL UPL Shriram Atul Products Indian Rayon Tata Chemicals 5 Soda ash plants (2. Ankleshwar*.930.3 MMT (80% of India) § Container handling . Surat*. Ankleshwar.0 MMT capacity) .only one in India § LNG Terminals at Dahej (10 MMT) & Hazira (5 MMT) § 42 Ports (including one major port at Kandla) § Cargo Handled at Kandla is 41. Baroda. Ankleshwar.Important Ports in Private Sector § 6 Hazardous Solid Waste Disposal sites: Vatva. Sarigam § 19 Common Effluent Treatment Plants • 8 Chloralkali Plants (810. Dahej.000 MT) Tata Chemicals Gujarat Heavy Chemicals Nirma Saurashtra Chemicals Dhrangadhra Chemicals Baroda & Dahej Dahej Jhagadia Jhagadia Atul Veraval Mithapur Mithapur Veraval Bhavnagar Porbandar Dhrangadhra • 6 Chemical Fertilizer Complexes Chemical and Petrochemicals Industry in Gujarat Large Petroleum Refineries (57.Gujarat: An Investment Destination Infrastructure § Longest coastline – 1600 km § Chemical Port Terminal (3.

2 + 30 MMT) and petrochemicals § Salt 10 MMT § Progressive policies § Large potential market § Engineering Thermoplastics compounding § Large plastic crates/ pallets § PVC profiles for doors and windows § Plasticizers § Pigments 18 .500 seats § 49 Polytechnics offering diploma courses in Engineering having 16.Gujarat: An Investment Destination Feedstock for Chemical Industries § Oil (418 MMT) & Natural Gas (34 MMCD) Resources § Lignite (1072 MMT) Mineral Reserves § Bauxite 105 MMT § Bentonite 105 MMT § Limestone 11. Government of Gujarat and CMIE § Petroleum refining (57.860 MMT § Castor oil 237.500 seats Rationale for Investment Opportunities § Excellent Infrastructure § Proximity to feedstock § Conducive Industrial Environment § Petrochemicals Key Growth Areas § Basic Chemicals § Specialty Chemicals § Knowledge Chemicals § Agrochemicals Source: Industries Commissionerate.000 MT (45% of world production) § Least man days lost due to industrial unrest Quality Workforce § Large pool of skilled technical personnel available § 39 Engineering Colleges offering undergraduate courses having 12.

§ Limited exports due to domestic market focus § Low cost competitiveness as compared to the other countries £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ Gujarat: Key Development Initiatives § Development/ Upgradation of Infrastructure § Special Incentives for backward area units § Special projects financial assistance for R&D Source: Industries Commissionerate. Government of Gujarat and Economic Times 19 . Basic Chemicals Domestic Demand Access to Global Markets Cost Competitiveness Economies of Scale Common Industrial Infrastructure Research & Development Government Policies Speciality Chemicals Knowledge Chemicals Major Drivers for the Industry Growth § High domestic demand potential.Gujarat: The Way Forward…… Analysis of chemical and petrochemicals industry segments in domestic and global context suggests that following factors play an important role in competitiveness and consequently investment decision in respect of the different segments.

highest in India Multi-product / Multi-services (10) Textiles & Apparels (4) IT / ITes (10) Pharmaceuticals (4) Chemicals (3) Engineering (9) Biotechnology (1) Power (2) Handicrafts / Artisan (1) Gems and Jewellery (1) Port based Multi product SEZ (1) Others (5) Chemical SEZs 20 .Special Economic Zone (SEZs) Gujarat has 51 SEZs.

Surat Sarigam.65 1000.37 1605. Vagra. . Vadodara Dahej.94 534. Vadodara P.38 6130. Valsad Vapi. Formally Approved 450 Hec. Ahmedabad Naroda.C. In-principal Approved Source: Gujarat Industrial Development Corporation. Bharuch Panoli. Valsad Area (Hectares) 127.67 666. Bharuch Ankleshwar.97 1611.00 218.C. Formally Approved 106 Hec. Ankleshwer. Bharuch Vilayat. Ahmedabad Vatwa.41 271.Bharuch Jayant SEZ. Ahmedabad Nandesari.96 1037. Choriyasi. Umergam.00 1163. GoG 21 . Bharuch Area & Location 160 Hec.77 Three SEZs Name Jubilant Chem SEZ. Bharuch Jhagadia.90 395.Chemicals / Petrochemicals Investment Locations Eight Chemical Product Cluster Location Jamnagar Mehsana Anand Vadodara Bharuch Ahmedabad Bhavanagar Valsad Fourteen Industrial Estates Name of the Estate Odhav.27 770. Bharuh Pandesara.88 362.. Bharuch Gujarat Hydrocarbon and Energy SEZ. Surat Sachin.

2007 A h m ed ab ad M u m b ai Mum District baiMumbai-Ahmedabad Ahm NH8 edab adDelhi BG Rail Bharuch Line 22 . Km including existing Estate and SEZs 210 Sq. Chemicals & Petrochemicals Investment Region Mehsana Ahmedabad Anand Jamnagar Rajkot Bhavnagar DAHEJ Vilayat Vadodara Jambusar Area – 310 Sq. Government of Gujarat.Chemicals / Petrochemicals Clusters Chemical/ Petrochem SEZs (3) Chem Industry Complexes Petrochem Industry Complexes Chemical Industrial Estates (GIDC) (14) Chemical Product Clusters (8) Petroleum. Km under Land Acquisition Vadodara Surat Surat HAZIRA PIPAVAV Valsad Dahej Alia Bet Narmada River Source: Industries Commissionerate / iNDEXTb.

1.000 Ha • • • • • Transport & warehousing Recreational zone Power.GREEN. Rail and Corridor Housing & Social Infrastructure .2.500 Ha .Delhi National Highway and Railway • 110 km from Airport Source: Gujarat Industrial Development Corporation. CHEMICAL INDUSTRIES N armada River DAHEJ ESTATE Bharuch DAHEJ ESTATE NARMADA RIVER Total Area – 29.000 Ha .500 Ha . Chemicals and Petrochemicals Investment Region (PCPIR) PCPIR Master Plan Baroda VAGARA Gulf of Khambhat Vadodara District VILAYAT BHUKHI CREEK Dahej Mumbai-Ahmedabad NH8 BHARUCH TALUKA RAHIAD LEGEND HOUSING OPEN.6. COMMERCIAL EXISTING ESTATE EXPANSION AREA OF EXISTING ESTATE UNDER ACQUISITION. GoG 23 .500 Hectares • • • • • Chemical & Petrochemical Industries Related Engineering Industries Green Belt Roads.RECREATION UTILITY TRANSPORT ZONE.200 Ha .600 Ha ..000 Ha .3.Chemicals / Petrochemicals Investment Locations Petroleum.1.200 Ha • 400 km north of Mumbai • 30 km from Mumbai .700 Ha .800 Ha . Infrastructure SEZ Ports .WARE HOUSES. Water.1.11.

GoG • PROPOSED ONGC PETROCHEMICAL COMPLEX 24 ..DMIC Industrial Area Locations In Gujarat DAHEJ BHARUCH INVESTMENT REGION PCPIR DELINEATED BOUNDARY VILLAGE BOUNDARIES VILAYAT INDUSTRAL ESTATE • Region taken up under Indian Government’s Petroleum Chemical & Petrochemical Investment Region (PCPIR) Policy • DAHEJ INDUSTRAL ESTATE Brownfield area .least displacement issues Existing GIDC estates at Dahej & Vilayat total area of 55 sq kms within site Source: Gujarat Industrial Development Corporation.

§ Products portfolio includes agrochemicals and agrochemical intermediates.A of Belgium and Transpek Industry Limited of India § The company has a production base in Vadodara. Switzerland § Ciba Specialty Chemicals (India) Ltd. Dyestuffs and Textile Chemicals 25 . § Cheminova India Ltd. § Ciba Specialty Chemicals (India) Ltd. The company operates in three market-focused segments: Plastic Additives. Industrial Chemicals. § Transpec Silox is a joint venture between Silox S. has manufacturing facility at Ankleshwar. Coating Effects and water treatment. Gujarat.Key Foreign Players in Gujarat Company Business Description § Cheminova – a Denmark based company is a manufacturer of fine chemicals.’s production facilities are situated in Bharuch district in the state of Gujarat. is also an international supply point for several Ciba products such as Chemicals. Its main business area is within plant protection products. Dyestuff intermediates. § Transpec Silox Industry Limited produces and supplies zinc and sulphur based chemicals for paints. textiles and dyes industries § Ciba (SWX: CIBN) is headquartered in Basel.

000 tonnes ink per annum. § LANXESS is a leading chemicals group with production sites and agencies all over the world: a global player in the fields of chemicals. § BASF Styrenics Private Limited the Indian subsidiary and has its production facility at Dahej. It is expected to produce 20-25. advanced intermediates and performance chemicals § BASF is the world’s leading chemical company:Its portfolio ranges from chemicals.Panchmahals. Gujarat § BASF Styrenics Private Limited is the only global polystyrene manufacturer operating in India 26 . performance products. Vadodara and Savli.Vadodara § The product portfolio includes performance polymers. agricultural products and fine chemicals to crude oil and natural gas. Gujarat § The plant will be one of the largest ink-making units in India. plastics.Key Foreign Players in Gujarat Company Business Description § Sakata Inx. plastics and rubber § Lanxess ABS Ltd has three production units in Gujarat located at Kalol. a Japan based company primarily manufactures and sells printing inks § Sakata Inx India is a 100 per cent subsidiary of Sakata Inx Corporation § Sakata Inx Corporation is setting up its second manufacturing gravure and offset inks manufacturing plant at Panoli in Bharuch district. Nandesari.

Bayer HealthCare AG. the company operates through Bayer Crop Science Ltd in Ankleshwar. seed treatment and plant growth regulators § The Dow Chemical Company is the second largest chemical manufacturer in the world § A memorandum of understanding (MOU) has been signed between Gujarat Alkalies & Chemicals Ltd. Germany. is a Fortune 500 company with global sales of US$ 33 billion § Its business operations are the responsibility of the subgroups . herbicides. Gujarat. The products portfolio of Bayer Crop Science AG includes insectisides. to synergise and cooperate with each other.and Dow Chemical Canada Inc.Key Foreign Players in Gujarat Company Business Description § Huber Chemicals India Ltd is a subsidiary of JM Huber Corp. the German chemical giant. § In Gujarat. § It is in the chemicals and engineering business and has a facility at Jhagadia. an industrial estate in Bharuch. § The company specializes in the production of printing chemicals § Bayer AG. § The two companies are expected to set up a greenfield unit in Dahej in Jan 2008 with an investment of INR 60 billions § The products produced at the plant will be used by pharma. industrial coolants and dyes sectors 27 . fungicides. Bayer Crop Science AG and Bayer Material Science AG.

Polytechnic.J.Educational Infrastructure § Some of the major academic institutions offering chemical engineering course includes: Ø Nirma University Of Science & Technology.D. Valsad Ø L. Rajkot Ø K. Polytechnic. College. Department of Employment & Training 28 . Bharuch Ø Govt. Ahmedabad Ø Government Engg. College of Engg. Some of them located located at Rajkot Bharuch and Valsad Ø Govt. Polytechnic. Ahmedabad § There are 39 Engineering colleges in Gujarat offering course in Chemical Engineering. Valsad Gandhinagar Ahmedabad Vadhvan Rajkot Bhavnagar Bharuch Nadiad Locations of Major Educational Institutions in Gujarat Surat Navsari Valsad Source: Department of Technical Education.. § 49 Polytechnics offer courses in Chemical sector in Gujarat.

natural borates is 5% • On most building blocks & feedstock the duty is 5% (ethylene. toluene.5% • On basic raw materials like acid grade fluorspar. naptha. Manufacture of most chemical products inter-alia covering organic / inorganic. xylene. sulphur. hazardous nature: Ø Hydrocyanic acid & its derivatives Ø Phosgene & its derivatives Ø Isocynates & di-isocynates of hydrocarbons. propylene. • The entrepreneurs need to submit only IEM with the Department of Industrial Policy & Promotion Customs Duty • The peak rate of Customs Duty on most Chemicals is 7. ethylbenzene) • Only the following items are covered in the compulsory licensing list because of their excise duty is 16% . • On almost all chemicals the Excise Duty provided no locational angle is applicable. dyestuffs & Pesticides is delicensed. 100% FDI is permissible.Initiatives by Government Licensing Policy • In Chemical Sector. Source: Ministry Of Chemicals & Fertilizers Government Of India 29 . rock phosphate. crude. benzene.

electricity. security. raw materials and consumable spares from domestic market § Full freedom for sub contracting § Facility to realize and repatriate export proceeds within 12 months § Facility to retain 100% foreign exchange receipts in the export earners foreign currency account self generated and purchased power SEZ scheme has been introduced to provide hassle free environment and state of the art infrastructure Gujarat has liberal labour policy providing complete flexibility in SEZs SEZ Development Committee monitors infrastructure development for each SEZ Source: Industries Commissionerate / iNDEXTb. restaurants and recreation centres on commercial lines § No net foreign exchange requirement imposed earning Common Incentives Indirect Tax Incentives § Nil customs duty § Nil excise duty § Exemption from central sales tax § Exemption from service tax § Exemption from securities transaction tax § Exemption electricity from for tax on sale of Other Benefits § Exemption of electricity duty – 10 Years* § Duty free procurement of capital goods (including second hand capital goods).Government of Gujarat . Government of Gujarat. * Section 15 – Sub Section II of GoG SEZ Act 04 30 . 2007 .SEZ Advantage For SEZ Units Income Tax Incentives § 10 year corporate tax holiday on export profit – 100% for initial 5 years and 50% for the next 5 years For Developers of SEZs Income Tax Incentives § 100% tax holiday for a period of any 10 consecutive years out of 15 years beginning from the year in which the SEZ is notified § Exempt from dividend distribution tax § Tax exempt on Interest of long term finance § Long-term capital gains arising on transfer of shares in developer company tax exempt § No minimum alternate tax (MAT) Other Benefits § Full freedom in allocation of developed plots to approved SEZ units on purely commercial basis § Full authority to provide services like water.

Government of Gujarat. of MOUs 40 30 20 10 0 2003 18 13 2005 3645 2007 16740 20000 15000 31 10000 5000 0 Investments for projects to be established in the chemical & petrochemical sector § Proposed investment – INR 13412 crore § Scope of Employment Generation – 14295 § Projects primarily related to establishing industrial parks and production of: ü Basic & fine chemicals ü Specialty & performance chemicals ü Organic & inorganic chemicals ü Dyes and intermediates 13412 Year Number of MoU Investment (INR Crores) Source: Industries Commissionerate / iNDEXTb. 2007 § 31 MoUs & Announcements were signed in Vibrant Gujarat 2007 No.Investment Trends § 3rd Vibrant Gujarat Global Investors’ Summit was held on January 12-13. 2007 31 .

Zeolite A Contract Research and Manufacturing Services (CRAMS) Toluene diisocynate (TDI) § § § § § Polyvinyl Chloride (PVC) ABS Resin Polycarbonate Resin Polyethylene Terephthalate (PET) Chips Styrene Butadiene Rubber (SBR) * Detailed Sector/ Project Profiles for investment opportunities available at www.Investment Opportunities Chemical and Petrochemical Projects § § § § § § Methanol Production Propylene Oxide and Propylene Glycol Cumene Production Phenol / Acetone Nitrobenzene and Aniline Diphenylmethane diisocyanate (MDI) and § § § § § § § § § § § § § § Bi-Axially Oriented Polypropylene (BOPP) Films BOPET Films Polyethylene (PE) Multi Layer Film Project Polyolefins Compounding and Masterbatches Polypropylene (PP) Ropes Fiber and Filament Plastic Crates Bisphenol-A Mono-Chloro Acetic Acid (MCA) Bromine Titanium Tetrachloride / Titanium Dioxide Chlorosilanes Synthetic Zeolite .com 32 .indextb.

Gujarat Alkalis and Chemicals Limited http:// www.indextb.gujaratindustry.gov.org http://www. Industries Department.com/ 33 .gov.com http://gsfc.gujaratalkalies.in http://www.net/ http://www.gidb. of Gujarat iNDEXTb -Industrial Extension Bureau Gujarat State Fertilizers & Chemicals Limited Gujarat Industrial Development Corporation Gujarat Infrastructure Development Board Gujarat Narmada Valley Fertilizers Company Ltd.Connecting Further….gov.gnvfc. Govt.gidc.gujarat.in/ http://www.in http://www.

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