India is the third-largest producer of chemicals in Asia, after China and Japan. The Indian chemical industry is an integral part of the Indian economy, contributing around 6.7% of the Indian GDP. Due to changes in consumer behaviour and economic conditions chemical industries have to change their strategies in which chemical consultants have played a significant role. There are various types of chemical industry consultants such as product development consultants, plant set up consultants, market research consultants and other chemical industry consultants having chemical industry in India can be classified into following types based on end-use specification and categories of the chemicals manufactured.
1. Bulk chemicals: This includes fundamental natural chemical compounds like methanol and acetic acid, and inorganic chemicals like soda ash, chlorine etc. These chemical substances are produced through large-scale processes and are usually used as intermediaries in the downstream cost chain. There is less possibility for product-differentiation in this sector, as a result the largest gamers remember economies of scale for sustenance. Alkali chemical compounds represent nearly 70% of total domestic manufacturing in this segment.
2. Speciality chemicals: These are low-yield, high-value chemical substances that require one-of-a-kind technical knowledge for production, for example, paints, adhesives, private care chemicals, food-grade chemicals etc. For this reason, areas of expertise in chemical substances generate greater EBITDA margins than fundamental middleman products. This segment, which constitutes round a quarter of the total chemical market in India, is majorly geared toward the end-user market and operates at the backside stop of the cost chain. Dyes and pigments, flavors and fragrances, surfactants and non-public care merchandise account for extra than 80% of the forte chemical share with the stability being water, printing, cleaning, and rubber chemicals. The phase is seeing elevated demand in B2B and B2C areas and is anticipated to develop at 10% CAGR until 2025 on the returned of increased home availability of constructing block intermediaries.
3. Agro chemicals: This consists of ‘knowledge chemicals’ like fertilizers (nitrogenous, phosphorous, and potassium based) insecticides, pesticides etc., and are produced in bulk amounts. Production of fertilizers for the home market is region-specific relying on the variations in agricultural yield and money vegetation in the region. India is the third greatest producer of agro-chemicals and exports 60% of its complete production. There has been an amplify in overseas mergers and acquisitions in this space, pretty from global gamers like DuPont, Dow, and Bayer, main to a great ability expansion. The hazard lies in manageable underutilization as a end result of this expansion. The phase is expected to develop at a CAGR of 8% until 2021 to attain a capitalization of USD 4 bn
4. Petro chemicals: This subgroup refers to chemical compounds beneath the olefin classification (like ethylene and propylene) and aromatic category (like benzene and xylene isomers). Petrochemicals can be used as intermediaries akin to primary chemical, for example, benzene is used to put together dyes and ethylene/propylene is used for making plastic products. In India, a key rising style is the integration of downstream industries with basic petrochemical refineries. The forecasted boom in demand from FY17 to FY23 is approximately 5% CAGR. GAIL, Haldia, and RIL have lengthy been the dominant companies in this segment..
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