Chemicals & Hydrocarbons
Global chemical industry sales touched nearly around US$ 4 trillion in 2014 and India accounted for nearly 3% share in it. In terms of volume of production, Indian chemical industry is the third largest producer in Asia and sixth largest in the world. Bulk chemicals account for largest share in the Indian chemical industry, followed by agrochemicals and specialty chemicals.
India’s chemical industry touches USD 139 billion (approx. INR 9,03,500 crore) in FY 2014. Methanol, acetic acid and phenol have significant import volumes, highlighting a deficit in domestic capacity. Significant investment potential exists to set up additional domestic capacities and serve demand through local production.
Global specialty chemicals industry was estimated at USD 740 billion in FY 2011 where India’s contribution was minimal, amounting to approximately USD 18 billion during the same period. On the other hand, global chlor-alkali industry was estimated at USD 70 billion in 2011 and India’s share was 4%.
Widening product portfolio and forward integration given the demand-supply deficit in phenol market can help Indian organic chemical industry to grow further.