SECTOR HIGHLIGHTS

INTRODUCTION
The Chemical and Petrochemicals sector is an important sector of the Indian
Economy. As per the IBEF report, it is the India is the 3 rd largest producer by
Volume in Asia and the 6th largest by output across the world. The contribution to
the GDP of the sector 3-7 %. Also, chemicals account for about 10% of exports as
per the Indian Economic survey 2014-15.

The current Indian market size is estimated at 144 billion USD (FY 15) and is
estimated to be USD 224 billion by 2017.

MAJOR SEGMENTS

Base Chemicals
Petrochemicals, synthetic fibres, industrial gases, fertilisers
and other organic and inorganic chemicals

Speciality
Chemicals
Dyes and Pigments,leather chemicals, construction
chemicals, personal care ingredients

Pharmaceuticals
Active Pharmaceuticals , Ingredients ( APIs) and
formulations

KEY SEGMENT CHARACTHERISTICS

GROWTH DRIVERS
The Indian Chemical sector has evolved from the state of Basic needs in the
1970s to Liberalisation and Expansion now. Many factors favour the industry
which is poised for a rapid growth.

High demand for exports and otherwise high latent demand. CAGR 0.9%

Huge market potential in construction chemical Industry (USD 580.63

Million)

Increased FDI inflows, totalling USD 10.82 (Less Fertilisers)

Strong policy support with 100 % FDI available in the sector
India is still a net importer with the growth in imports currently at USD 19
billion in FY15
Organic Chemicals dominate the exports with a share of 44.05%
68% of the production share and the largest segment is Alkali chemicals

MARKET CHARACHTERISTICS

As on 2015, the National Chemical Policy of India which is expected to help

in improving the chemical industry is in final stages and as a part of this,
the Government is planning to launch Indian Bureau of Corrosion Control
and setting up National Chemical Centre that could prevent losses from
corrosion and act as a repository information centre for the chemical
industry
Expected growth of 10-13 % (YOY) over the coming years
There is strong government support towards R&D; this can be seen in the
focus on R&D across companies
Highly fragmented Industry. Gujarat and Maharashtra, the most favoured
zones

KEY INDICATORS
Product
Chemical
Production
(MMT)
Base
Petrochemical
Production

2010
9.1

2011
9.4

2012
9.4

2013
9.6

2014
9.6

10.1

11.0

11.2

11.4

11.6

(MMT)
Chemical and
Petrochemical
export (INR
bn)
Sector Exports
%
Chemical and
Petrochemical
Import (INR
bn)
Sector Imports
%

1045

1358

1514

1786

1783

9.2

9.3

9.3

9.4

9.4

1387

1764

2099

2413

2627

8.2

7.5

7.9

8.9

9.6

MAJOR PLAYERS
TATA CHEMICALS
Tata Chemicals Limited (TCL) operates broadly in three sectors Living
Essentials, Industry Essentials and Farm Essentials through the
production and distribution of chemicals, crop nutrition and consumer products.
It is currently the second largest producer of soda ash in the world, with
manufacturing facilities in India, UK, Kenya and the USA. It is Indias leading crop
nutrients player, with its own manufacturing facilities for urea and phosphate
fertilisers. TCL is Indias market leader in the branded, iodised salt segment with
its brand Tata Salt.

PIDILITE

UPL
Headquartered in Mumbai, UPL formerly known as United Phosphorus Limited
is a global company active in generic crop protection, chemicals and seed
production. It is among the top ten agrichemicals producers in the world. UPLs
main products include Acephate, Propanil, Glufosinate, Metamitron and
Copper, as well as Sulphur.

Major Brands include Rampart, Conquer, Saaf, Samar, Jhatka, Metsy,

Aceta, Cyrus, Doom and Ratol. About 80% of UPLs revenue came from
branded products in 2014.
The company employed 3,827 people in FY 2015.

BASF
Currently BASF India specialises in the production of polymers, agrochemicals,
textile chemicals, performance plastics, automotive and coil coatings,
construction chemicals.
BASF has nine production sites and two R&D centers in India.
In October 2014, BASF inaugurated its biggest chemical production site at Dahej,
Gujarat. The project was worth INR 10 bn. Due to additional interest,
depreciation, and pre-marketing expenses and start-up costs related to the Dahej
site, the company reported a loss for the financial year that ended on March 31,
2015.
Since January 2015, the import, distribution and technical service of GLASURIT
a BASF automotive refinish paint brand has being conducted by Wrth
India Private Ltd.