India seems to have again become a preferred destination for sourcing chemical products. With the Chinese government imposing restrictions on the production and sale of over 257 chemicals in areas within 500-km radius of Beijing due to the Olympic games, chemical buyers have switched to India from China to import chemical products.
The shift has led to a sharp rise of around 20-25 per cent in chemical exports from India, especially from the chemical hub of the country, Gujarat. Gujarat accounts for more than 65 per cent of the total chemical production in the country.
Ravi Kapoor, chairman (Gujarat chapter), Indian Chemical Council and MD of German multinational company Heubach Colours Pvt Ltd, said: “Exports have certainly increased, but the exact figures would be known only after the end of the current quarter. However, there has been a shift of buyers from China to India, which seem to have become the preferred destination again.”
Sherish Desai, president, Vapi Industries Association, said: “Despite high prices of chemical products, offtake from oversea buyers have increased.”
Babubhai Patel, president, Nandesari industrial estate, said: “Last year, chemical units located in Nandesari industrial estate in Vadodara district exported chemical products worth Rs 600 crore. The exports have seen a rise of nearly 30 per cent and this year we hope to export chemical products worth Rs 800 crore.”
YP Saxena, secretary, Indian Chemical Council (Gujarat chapter), said: “India is the only major destination after China for sourcing chemical products. Restriction on production of chemicals in China due to Olympic has helped India exports.
To cash in on increasing demand, chemical companies have also embarked on an expansion drive. However, industry players admit that the bullish trend in chemical industry is temporary and buyers may start switching over to China once the Olympic games are over.
