Chemical Industry Overview
- Total US$30.59 Billion during 2005-2006 as per March 2007 report*.
- Contributes to 3% of GDP in the same report*.
- One of the fastest growing sectors of Indian economy.
- Chemical Industry in India is fragmented and dispersed - multi
product and multi faceted.
- Chemicals sold directly to large customers and through distribution
channels. Distribution channels mostly consist of stockists and dealers
spread all over India addressing small segments and retail market.
*
Source: Cygnus Business Consulting & Research (Cygnus)
Chemical
Industry is highly heterogeneous with following major sectors:
| Chemical Industry Structure |
- Highly fragmented and widely dispersed.
- Western India accounts for 45-50% of total Indian chemical Industry.
- Large players in bulk chemicals. Both large and small players in
Fine and Speciality chemicals.
- Presence of many multinational companies also.
India was a net importer of
chemicals in early 1990s , but has now become a net exporter due to
reduction in Imports because of implementation of many large scale
petrochemical plants like Reliance etc. and also because of tremendous
growth of exports in sectors like bulk drugs and pharma, pesticides, dyes
and intermediates.
Basic Chemicals Export did exceedingly well...
Exports by the basic chemical sector in 1995-96 surpassed the target of Rs
6,742 crore by reaching a figure of Rs 7,979.30 crore and showing a massive
growth of 24% over the preceding year's figure of Rs 6,403.90 crore. During
1994-95 exports totaled Rs 6,403.90 crore against the target of Rs 5,504.60
crore, while in the preceding year shipments reached Rs 4,904.40 crore
against the target of Rs 4,584.00 crore.
The drugs and pharmaceuticals and the organic/inorganic/agro-chemicals
contributed as much as 63% of total exports. This has been a herculean task,
which has been achieved by competing with big multinational corporations of
the world. Turnover for the year ended 1998-99 is close to Rs.15,000 crores.
