CHEMEXCIL

Chemical Export Promotion Council Of India
GROWTH PROSPECTS OF THRUST AREAS OF INDIAN EXPORTS

Presented by –

Rahul Goyal Sidharth Ahuja Mayank Gupta (Section F)

Overview of Indian Chemical Industry
• The Indian Chemical Industry has been ranked 5th largest in Asia as per the Exim Bank studies. • Chemical industry is one of India’s oldest industries, contributing significantly towards the industrial and economic growth of the nation. • The Indian chemical industry is estimated to be worth approximately US$ 35 billion, which is about 3% of India’s total GDP. • In terms of volume, it is 12th largest in the world and 3rd largest in Asia. • The industry is forecasted to reach USD 200 billion mark by 2020. • The industry accounts for about 10% of the output of the Indian manufacturing sector, 13% of India’s total exports, and 9% of the country’s total imports. In terms of segmentation, basic chemicals is the largest sector with total revenues estimated at US$ 43 billion. • Domestic Specialty Chemical Industry is expected to grow at 15%, almost double the growth of global industry; exports to touch USD 13 billion in 2013.

Overview of Indian Chemical Industry (Cont..)
• The Indian Government is rendering extensive support to give impetus to the Indian Chemical Industry and has set up the Task Force to consider suggestions for National Chemical Policy to ensure steady growth of the country’s chemical sector. Investment Regions (PCPIR) in Gujarat, Andhra Pradesh, West Bengal and Odisha to accelerate the country’s industrial growth. The Indian Government has earmarked substantial funds to achieve healthy growth of the country’s upstream and downstream sectors of the chemical industry. India is emerging as Asia’s refining hub and has become the net exporter of petrochemicals to countries like the Middle East, Korea, Japan and Singapore. The Indian chemical industry is matured and is in the midst of a major restructuring and consolidation phase. In a nutshell, the Indian chemical industry has a large potential to grow in domestic as well as in export markets.

Overview of Global Chemical Industry • • The world chemical industry is estimated to have reached € 2353 billion (US$ 3127 billion) in 2012. • • • . accounting for nearly half the global sales ( € 1147 billion) followed by Europe (€ 578 billion). it was as high as 21.2% during 2006-2010 to amount to US$545 billion in 2010 as compared to US$ 451 billion in 2006. on a continuous basis.9% each in the case of Middle East and Africa. While the average annual increase in exports from Asia-Pacific region was 11. International trade in chemical products has witnessed a continuous rise with global exports of chemicals recording an average annual increase of 6. The importance of the Economies of Brazil – Russia – India – China & South Africa (BRICS) is growing in the chemical Industry. The Asian region is the largest contributor to the global chemical industry.9% during the 2006-2010 period.

Pesticides. – Basic Inorganic and Organic Chemicals including Agro Chemicals. – Castor Oil and Derivatives of Castor Oil. • Its headquarters at Mumbai. Soaps. popularly known as CHEMEXCIL was established in the year 1963. Small Scale Manufacturers & Merchant Exporters. Essential Oils. Cosmetics. – Cosmetics. CHEMEXCIL has four separate panels viz. Toiletries and other products like Essential Oils. Castor Oil etc. Pharmaceuticals & Cosmetics Export Promotion Council. – Dyes & Dye Intermediates.CHEMEXCIL • Basic Chemicals. • Chemexcil has 4000 members comprising of Large Scale Manufacturers. . Toiletries. Detergents. with the objective of making concerted efforts to promote exports of Basic Organic and Inorganic Chemicals. Dyes.

Roles of Chemexcil • • Assisting members to get their MDA/MAI claims refunded from Govt. Organize Reverse Buyer-Seller in India. Holding of Sector Specific International Conferences/ B2B Meets in India/ Abroad. • • • • • Maintenance of Chemical Library & help overseas importers/ Exporters .g. for policy concern/ suggestions so that export is done smoothly. of India. Organizing Indian Pavilion in important International Chemical shows in order to create Brand India Image. Issuance of Certificate of Origin. Help exporters in their needs for technology up gradation from inception of the product till it is put in the Warehouse/ Showcase of Departmental stores under MAI. (For e. • .sourcing their products. – Export of Menthol to USA / Canada.) Interface with Govt.

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DYES & DYES INTERMEDIATES .

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5 19.3 19.1 .6 28.4 29.9 9377 8919 13093 20478 29230 43040 52651 52140 -37 -5 47 56 43 47 22. Organic and Agro Chemicals Year Inorganic Chemicals % growth from previous Year Organic Chemicals % growth from previous Year Agro Chemicals % growth from previous Year Total % growth from previous Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 9625 13759 15631 16388 22520 37120 36530 46790 * 4 43 14 5 37 65 -1.5 52930 72480 87870 96760 111900 159740 165300 197880 277300 -13 37 21 10 16 43 3.Inorganic.1 * 33928 49802 59146 59894 60240 79580 76190 98950 * -8 47 19 1 1 32 -4.7 40.

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Cosmetics. Toiletries & Essential Oils .

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Castor Oil .

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Towns of Export Excellence .

$ 82.org as of 2011) .7 billion • Brazil ----------.0 billion (Source – www.$ 975.$ 110.7 billion • Netherlands -.$ 75.$ 116.3 billion • Russia ---------.Major Competitors in the Global Market • China ----------.$ 543.$ 207.3 billion • Germany -----.1 billion • South Korea -.$ 156.$232.0 billion • Japan ----------.2 billion • Taiwan --------.9 billion • USA ------------.$ 73.8 billion • France --------.cefig.

if competency is not acquired • Bilateral / multilateral trade agreement .SWOT ANALYSIS Strengths • Diversified manufacturing base • Vibrant downstream industries in different segments • Competitive core industries • Capability to produce world-class end product • Large domestic market • Major raw material component sources within the country • Good R&D base and quality human resources Weaknesses • Cost of Power • Cost of Finance • Infrastructure • Scale of Production • Cost Disadvantages • Multiple taxes • Extra transportation cost for raw material & finished goods • Low investments in R&D and technology Opportunities Market in developed country is opening up • Success in Dyestuff has boosted other sectors • Being close to Middle east India has close vicinity to petrochemicals • Large no of product going off patent • Competencies to utilize renewable resources • Climatic conditions in India • Competency to emerge as a global player in area of specialty chemicals • • • • Threats Reduction in import tariffs China’s lower chemical cost Threat of extinction.

apparel and textiles. chemicals and allied products and leather and leather products. . plastics. handicrafts. electronic products.Foreign Trade Policy Provisions CHAPTER. basic chemicals and pharmaceuticals.1 B SPECIAL FOCUS INITIATIVES Technological Upgradation (a) EPCG Scheme at zero duty has been introduced for certain engineering products.

CHAPTER – 3 PROMOTIONAL MEASURES PROMOTIONAL MEASURES IN DEPARTMENT OF COMMERCE Market Development Assistance (MDA) DOC provides for reimbursement of charges/expenses for fulfilling statutory requirements in the buyer country. Export of dual-use items and technologies is either prohibited or is permitted under a license. to be fulfilled in 6 years reckoned from Authorization issue-date. handicrafts. Materials. basic chemicals & pharmaceuticals. Financial assistance is also provided for contesting litigation(s) in the foreign country concerning restrictions/anti-dumping duties etc. subject to an export obligation equivalent to 6 times of duty saved on capital goods imported under EPCG scheme. plastics. Category 1 Toxic Chemicals and other chemicals . Organisms. apparels & textiles.-I. on particular product(s) of Indian origin. Appendix 3 of Schedule 2 of ITC (HS) Classification contains a list of all dual-use items and technologies export of which is regulated. bio-technology and agro-chemicals products on recommendation of EPCs. Basic Chemicals (excluding Pharma Products). as provided under the Market Access Initiative (MAI) Scheme of DOC. Export of dual-use items and technologies under India’s Foreign Trade Policy is regulated. subject to exclusions as provided in HBPv1. dual-use items have been given the nomenclature of Special Chemicals. In Foreign Trade Policy. 2009-14. including registration charges for product registration for pharmaceuticals.1] Zero duty EPCG scheme allows import of capital goods for pre-production. Export Policy relating to SCOMET items is given in Appendix 3 of Schedule 2 of ITC (HS) Classification and Paragraph 2. production and post-production (including CKD/SKD thereof as well as computer software systems) at zero Customs duty. chemicals & allied products and leather & leather products.49 of Hand Book of Procedures Vol. Equipment and Technologies (SCOMET). REWARD / INCENTIVE SCHEMES IN DGFT Status Holders Incentive Scrip The Status Holders of the following Sectors shall be eligible for this Status Holders Incentive Scrip: 1. The scheme will be available for exporters of engineering & electronic products. CHAPTER-5 EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME Zero duty EPCG Scheme [5.

Gujarat 13-15 October.20-22 September. Mauritius .5-7 January. Thailand . Gandhinagar. Oman .23-24 February.Chapter 3 SOME EVENTS UNDER MDA • 4th Indexpo Muscat .15-16 March. 2012 . 2012 • Indian Chemical Exhibition. 2012 • BSM.Thai 2011. 2012 • BSM Australia . 2011 • 10th Reverse Buyer Seller Meet. 2011 • Chemexpo .27 & 29 February.Kenya & Tanzania .

2012 IFEAT – 4th – 8th November. 2011 11th RBSM (OTAI). 2011 13th CAC China – 2012.EVENTS UNDER MAI Chapter 3 • • • • • • 11th China Interdye – 2011. 2012 Kichem 2012 – 31st October – 3rd November. 2012 Turchem Inerdye Exhibition – 11th-14th October. Switzerland . 2012 India Chem 2012 – 4th-6th October. 2011 Chemspec USA 2011. Philadelphia.3-5 May 2011 Chemspec Europe 2011. USA . 6-8 March. 2012 Few Other Events by Chemexcil • • • • • • Indian Chemical Exhibition – 13th – 14th November. 2012 India Pavilion Turchem 2012 – 11th-14th October. China .26-28 April. Mumbai 11-13 Dec. 2012 . China.17th Aug. Argentina .15-16 June. 11 FCI Trade 2011.

The Standards used by CHEMEXCIL are:- .Quality Standards ISO has developed over 19 000 International Standards and all are included in the ISO Standards catalogue.

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Major Challenges Faced by the Exporter Indian chemical industry holds a recognized position in the global map. which hinders the growth of the industry. These include: – SSI reservation / Fragmented nature of industry The Indian chemical industry is having a fragmented structure with more number of units in small-scale sectors spread in various parts of the country. there are few factors. however. .

– High Price of basic feed stock The fluctuations in oil prices therefore affect the growth projections of the firms. – Environmental Regulations Safety. health and environment protection issues are becoming important concerns for the Indian chemical industry. . – Low R&D Levels R&D intensity is assuming greater significance for many of the manufacturing segments.

Source: http://www.com/generalnews/news/chemexcil-seeksopportunities-in-south-africa/37347/ . 16:05 "South Africa is a highly quality-conscious market.business-standard. There is considerable opportunity for entry for small and medium sized entrepreneurs.Relevant News Articles “Chemexcil seeks opportunities in South Africa” Press Trust of India / Johannesburg July 27. so I think the key issue is not the size of the Indian company. As many as 68 Indian exporters and manufacturers from Chemexcil are participating in a two-day buyer-seller meet to boost business in South Africa. 2012. but the kind of quality that you can consistently adhere to. Pharmaceuticals and Cosmetics Export Promotion Council (Chemexcil) here yesterday." Gupta told a delegation from the Chemicals.

01/news/32981286_1_nigeriapetroleum-industry-bill-mahesh-sachdev .com/2012-08.indiatimes. Nigeria constitutes nearly a quarter of India's trade with the African continent.7 billion in FY2011-12 from USD 2 billion in the previous fiscal. 2012. making it the largest trading partner in the region. said quoting official data.economictimes.7 billion in 2010-11. he said. Indian High Commissioner to Nigeria. He was speaking at the opening ceremony of the first Indian-Nigerian Chemical Products Buyer-Seller Meet in Lagos yesterday. 08.3 billion in the fiscal ended March. The trade between the two nations stood at USD 12.Relevant News Articles “India.10PM IS The bilateral trade between India and Nigeria has risen by over 36 per cent to USD 17. Nigeria trade crosses $17 billion in FY12” PTI Aug 1.7 billion in 2010-11. 2012. Source: http://articles. while imports stood at USD 14. Exports rose to USD 2.6 billion as against USD 10. Mahesh Sachdev.

Source: http://www. Finland. Speciality chemicals and some basic chemicals would also be included.Relevant News Articles “Biesterfeld works with India’s Chemexcil on Reach Legislation” 23 June 2009 15:02 [Source: ICIS news] HELSINKI (ICIS news)--German distributor Biesterfeld is cooperating with Chemexcil. The alliance would reduce considerably the expenses involved.icis. Biesterfeld CEO Birger Kuck said that subsidiary Biesterfeld ChemLogs would help small and medium-sized enterprises (SMEs) in India by providing training and consultancy work. as India is a major exporter of dyestuffs to Europe. would mainly focus on dyes. as well as preregistering and registering products. Kuck said. an Indian government organisation. on Europe’s Reach legislation. The deal with Chemexcil.com/Articles/2009/06/23/9226990/biesterfeld-works-withindias-chemexcil-on-reach-legislation. the company said Tuesday.html . which followed a visit by a German delegation to the country in November last year. Speaking on the sidelines of the FECC Congress in Helsinki.

com/generalnews/news/chemexcil-seeks-opportunities-in-south-africa/37347] News Article .aspx] Statistics – TOP 15 COUNTRIES OF EXPORTS OF DYES & DYE INTERMEDIATES FROM INDIA DURING 2009-10 WITH COMPARATIVE FIGURES FOR PREVIOUS YEARS [http://chemexcil.aspx] Statistics – CHEMEXIL’S EXPORT [http://chemexcil.com/2012-08-01/news/32981286_1_nigeria-petroleum-industry-bill-mahesh-sachdev] News Article – Chemexcil seeks opportunities in South Africa [http://www.iso.aspx] Statistics .Paint and Color Industries [http://www.Chemical Technology [http://www.gov.gov.aspx] ISO Standards .org/iso/home/store/catalogue_ics/catalogue_ics_browse.in/Top%20Item%20Export.References ANNUAL REPORT 49TH WEB – CHEMEXCIL (2011-2012) [http://chemexcil. Nigeria trade crosses $17 billion in FY12 [http://articles.in/Download.economictimes.in] News Article – Chemexcil seeks opportunities in South Africa [http://www.India.gov.commerce.html] .htm?ICS1=87] Provisions in Foreign Trade Policies [http://www.iso.gov.nic.org/iso/home/store/catalogue_ics/catalogue_ics_browse.com/Articles/2009/06/23/9226990/biesterfeld-works-with-indias-chemexcil-on-reach-legislation.indiatimes.icis.in/TopCountries.in/Chemexcil%20Exports.htm?ICS1=71] ISO Standards .TOP COUNTRIES OF EXPORTS OF CHEMEXCIL’S ITEMS [http://chemexcil.business-standard.

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