Specialty chemicals market in India to grow from $23 bn to $ 70 bn by 2021: Tata Strategic

Indian speciality chemicals market, which is currently valued at approximately $ 23 billion, is estimated to reach $ 60-70 billion by 2020, according to Tata Strategic Management Group, which has prepared the report on speciality chemicals as the knowledge and strategy partner for FICCI for the IndianChem Gujarat Conclave 2013, held from October 24-26, 2013 in Gandhinagar, Gujarat.
 
“Indian speciality chemicals market has shown a strong growth at 14% per annum over the last 5 years. While the growth rate is encouraging due to small base, the consumption and overall penetration levels of speciality chemicals and additives are still very low in India. With increasing consumption and high growth in end use industries several speciality chemicals would see a point of inflection in next 3-7 years,” added the report.
 
Raju Bhinge, Chief Executive Officer, Tata Strategic Management Group, said, “Our endeavour through this report is to highlight the significance of India’s speciality chemicals industry and the demand drivers and opportunities in different segments. The domestic demand for specialty chemicals is set to increase at the pace of two times GDP growth due to increasing demand in end use industries. This growth is driven by increased disposable income, youthful population, and urbanization.” 
 
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Manish Panchal, Practice Head - Chemical & Energy, Tata Strategic Management Group, said , “The report provides insights on the success story of Indian fine chemicals that can be replicated by  fast growing specialty chemicals segments like home care, personal care, packaging and construction chemicals. India can leverage its low cost manufacturing position, availability of skilled manpower and ability to comply with global quality norms.”
 
On this occasion, Tata Strategic Management Group also released a white paper on ‘Key Infrastructure gaps and challenges in Dahej PCPIR’.  The white paper highlights the current status of utilities, ports, roadways and railways and social infrastructure. The paper concludes with suggestions on how to bridge the gaps and make Dahej PCPIR succeed.