Chemical industry in India: interesting facts 
It gives me immense pleasure to write for the ACC Newsletter and provide me a feel of responsibility of being a part of the movement which is going to change the face of the chemical industry in Asia and the world and helping all Asian countries to reap the benefits of working together. Interacting more with each other will help all of us in understanding each other better and the way our markets are growing & the way we are developing new skills can be anyone’s dream. Opportunities are getting generated every day and time is running faster than ever to react. One has to be more proactive to tap these opportunities. As in today’s world, ‘survival of bigger is no guarantee today but survival of fastest is Let’s start doing our home work and get ready for any business challenges we come Let me take this opportunity to give you some simple basic facts about Indian chemical industry and I am sure this will help you as a guideline to start working with India. Members are welcome to contact me for any of their business related issues regarding India as my company provides consultancy services for chemical industry and I can assure you that I will provide you my personnel attention to be of any help to you in this regard. (pankaj.katiyar@dynamicorbits.com) So now you are ready for the show and here are some interesting facts about Indian chemical industry:

‰13% of the total industrial output & 7% of the GDP ‰10 % - 12 % growth per annum ‰2% of global chemical industry ‰Indian pharmaceutical industry ranks 4th in volume & 13th in term of value in the world. ‰India – a strong player in the generic pharmaceutical market ‰India – 2nd largest producer of agrochemicals in Asia

‰Domestic market size – US$700 million
‰Fastest growing sector at 15%
‰Reliance – key player in this market
INORGANIC CHEMICALS ‰Market size – US$260 million ‰Growth rate – 9% ‰4.5% of global market ‰Mainly used in detergent, glass, soap, fertilizer and alkalis PHARMACEUTICALS ‰India ranks 4th In terms of volume & 13th in terms of value. ‰Domestic market size – US$450 million ‰Indian market is 1.6% of the global market ‰Domestic market growth rate – 8 to 9% ‰Strong player in generic market--several of the world’s leading drug companies are based in Indian. ‰Significant export led growth AGRO CHEMICALS AND FERTILISERS ‰Domestic market size – US$88 million ‰Domestic market growth rate – 10% annually ‰In India, insecticide commands major share 76%. ‰Globally, herbicides commands major share 48% & insecticide only 29%. ‰India is largest manufacture of basic pesticide chemicals among South Asia & Africa, next
only to Japan.
‰Market size – US$860 million
‰Major used in textile, leather, paper, detergent, rubber,
‰Paints, polyester, oil & gas.
‰Growth rate – 10-12%.
‰Market size – US$110 million.
‰Growth rate – 12%
‰Indian market is 6% of the global market
‰Major used in
‰Paints, inks, textiles, polymers.
‰Highly fragmented market
‰25 large & medium players holding 50% of the market.
‰Remaining 50% is with another small 2000 un-organized players
Succes Stories in Fine & Specialty Chemicals

‰In the pharmaceutical industry, India has demonstrated repeatedly its ability to produce the
latest drugs available in the world cost effectively.
‰Within six months after Pfizer launched ‘Viagra’ globally, 3 -4 Indian pharmaceutical
companies had introduced it to India market.
Demonstrated ability to develop and absorb the latest technologies. Examples are given below : Rallis manufactures Hexaconazole, a complex Agro-Chemical with purity of 95% with indigenous technology. The innovator produces this product with 90% purity. Gharda manufactures Dicamba, another complex Agro Chemical with purity of 95% with indigenous technology. The innovator of this product produces this product with a purity of 87%. ‰Other examples include the anti-AIDS drugs including ‘Lamivudine’ ‘Zidovudine’ and ‘Indinavir’ each of which are being produced in India at a cost which is a fraction of the price at which these products are being sold internationally. FOREIGN INVESTMENTS IN INDIA IN RECENT YEARS ØAlfa Laval International AB ØAstra Pharmaceuticals AB ØPfizer Corporation ØCiba Specialty Chemicals ØGE Plastics ØDupont ØGE Corporation ØMcKinseyØInternational Flavors and Fragrances ØRohm and Haas ØIntel ØIBM ØCisco Network ØGaz de France ØBaxter International ØDaimler Chrysler ØLafarge SA ØRhodia ETC ETC. ---------+----------------+----------------+----------------+------------------+--------- There are many more interesting facts about Indian chemical industry like the geographically distribution of different kinds of chemical industry, new developments etc, which we can take later in some other issue of ACC Newsletter. Till then, cheers and take care. Pankaj Katiyar Vice Chairman, ACC Email: pankaj.katiyar@dynamicorbits.com

Source: http://www.cacci.org.tw/ACC%20Newsletter/May05/Katiyar2.pdf

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