 "Indian chemicals market to reach $214 billion by FY19")
Chemicals market in India is expected to grow from $ 139 billion in FY14 to $ 214 billion by FY19, according to a Tata Strategic Management Group report, titled ‘Chemicals - A way of life’. The report was released on the occasion of India Chem Gujarat 2015 conference, organised by FICCI, on October 28, 2015.
“The Indian chemical industry is an integral component of the Indian economy and has the potential to grow at about 9 percent annually to reach $ 214 billion by 2019. Key imperatives for the growth of chemical industry are to secure feedstock, right product mix and identify partnership opportunities to gain capital and technology support,” commented Manish Panchal, practice head - chemical & energy, Tata Strategic Management Group.
Today, at a domestic market size of $ 139 billion, the industry accounts for only 3.3 percent of the global chemical market. It is highly diversified with more than 80,000 chemicals and currently accounts for 15 percent of India’s industrial output which makes it very crucial for the economic development of the country.
Raju Bhinge, chief executive officer, Tata Strategic Management Group, said, “With growing demand in end use industries, driven by increased disposable income, youthful population, and urbanisation there is immense potential for the Indian chemical industry in the days ahead.”
The report states that the chemical industry faces critical challenges such as availability of key feedstock, infrastructure status, scale of operations, access to technology, energy security and ease of doing business. These issues have hampered industry growth and it needs government interventions to achieve its true potential. Adoptions of alternate feedstock, increasing investment in R&D and achieving scale through collaboration are some of the key levers industry can act upon to overcome some of these challenges.
Karthikeyan K S, principal - chemicals practice, Tata Strategic Management Group, added “Currently, the penetration of specialty chemicals within India’s end markets is very low. With an increased focus on improving product offering through value based management and technology up-gradation, usage intensity of specialty chemicals within the end markets will rise in India over the next decade.”
“The Indian chemical industry is an integral component of the Indian economy and has the potential to grow at about 9 percent annually to reach $ 214 billion by 2019. Key imperatives for the growth of chemical industry are to secure feedstock, right product mix and identify partnership opportunities to gain capital and technology support,” commented Manish Panchal, practice head - chemical & energy, Tata Strategic Management Group.
Today, at a domestic market size of $ 139 billion, the industry accounts for only 3.3 percent of the global chemical market. It is highly diversified with more than 80,000 chemicals and currently accounts for 15 percent of India’s industrial output which makes it very crucial for the economic development of the country.
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The report states that the chemical industry faces critical challenges such as availability of key feedstock, infrastructure status, scale of operations, access to technology, energy security and ease of doing business. These issues have hampered industry growth and it needs government interventions to achieve its true potential. Adoptions of alternate feedstock, increasing investment in R&D and achieving scale through collaboration are some of the key levers industry can act upon to overcome some of these challenges.
Karthikeyan K S, principal - chemicals practice, Tata Strategic Management Group, added “Currently, the penetration of specialty chemicals within India’s end markets is very low. With an increased focus on improving product offering through value based management and technology up-gradation, usage intensity of specialty chemicals within the end markets will rise in India over the next decade.”