Specialty sector poised to be the fastest growing segment in Indian chemical industry: Frost & Sullivan

The Indian chemical industry, currently valued at $ 136 billion approximately, is likely to grow at a compound annual growth rate of 10-12% over the next five years, pointed out Frost & Sullivan in its whitepaper titled ‘Indian chemical industry and mega trends impacting the industry’. The whitepaper will be presented at the Indian Chemicals Council’s (ICC) ‘7^th Annual India Chemical Industry Outlook Conference’ to be held from March 6-7, 2014, at the Taj Lands End, Mumbai.
 
In its study, Frost & Sullivan finds that the Indian chemical industry was the second largest producer in Asia in terms of volume, after China. Over the last decade, the Indian chemical industry has strengthened its competitiveness in agrochemicals and pharmaceuticals segments, becoming one of the major exporters for these segments, globally. The industry also witnessed increased investments in the specialty sector, which is poised to be the fastest growing segment in India.
 
Domestic growth in chemicals industry will be driven by increase in consumption and high growth in the end-user industries, where per capita consumption presently is low. Key end-user industries such as construction, automotive, packaging, and electronics are expected to drive demand immensely.
 
Construction is likely to grow at 12%, packaging and electronics at around 13%, rendering a promising growth of over 12% to the chemicals demand. Regulatory compliances and sustainable practices will also aid the Indian industry to become a key manufacturing hub for chemicals on the global map in the future. Indigenous innovation will play an important role in making the industry competitive vis-à-vis international companies, predicted the Frost & Sullivan study.
 
In this edition of ICC’s annual outlook conference, eminent speakers and dignitaries will provide inputs on the challenges and opportunities in the chemicals and materials space in context to the global chemicals and materials industry. The event will also seek to provide an understanding of the megatrends, technology and innovation impacting the industry, and the role of various stakeholders for leveraging these opportunities.
 
Vishnu Shankar, Associate Director, Chemicals, Materials & Foods Practice, Frost & Sullivan states, “Exciting times lie ahead for the Indian chemical industry vis-a-vis what’s happening around the world. Shale gas developments in North America, major non-oil and gas diversification drives in the Middle East, expanding chemical capacity in China, etc, are just some of the major global developments that Indian manufacturers have to be aware of as they plan their growth strategies over the next decade. We believe that a summit of this nature not only brings the best minds under one roof, but also provides a platform where the initial seeds can be sown towards devising strategies to increase India’s share from the current 5 percent that it holds today in the global chemical industry.”
 
H S Karangle, Director General of ICC, said, “The India Chemical Industry Outlook Conference has served as a platform for people from the industry to come together and discuss on sector specific themes. The 7^th edition of the conference is designed to bring pertinent issues faced by the chemical industry today to the forefront and talk about the way forward for the industry.”