Some of the lucrative sub-sectors of the chemical industry are
Chemical industry in India
The chemical industry is one of the most important manufacturing subsectors in India. The history of the industry goes back to pre independence, when very few goods were produced locally. Industry contributes a lot to the economy, accounting for more than 6.5% of GDP in 2009. In terms of import and export, the industry also occupies an important position.
Classification of Indian chemical industry
The industry is highly diversified and is divided into three different categories, namely basic chemicals, special chemicals and knowledge chemicals.
1) Basic chemicals are high-yield, low value-added products, and the product differences between manufacturers are limited. These industries include petrochemical, chemical fertilizer and inorganic chemical industry.
2) The professional sector is composed of products with high added value and great product differentiation. Low capital investment requirements in this area include adhesives, sealants, catalysts, industrial gases, paints, dyes and varnishes.
3) The knowledge sector includes differentiated chemical and biological substances with high R & D and marketing costs. These include plastic additives, pesticides, pharmaceuticals and biotechnology.
Characteristics of Indian chemical industry
Some characteristics of Indian chemical industry are illustrated in India as follows:
With the increase of per capita consumption, the potential of domestic demand is great
Small scale of operation
High fragmentation
Due to the focus on the domestic market, the emphasis on exports is limited
Cost competitive R & D facilities when compared globally. Thanks to government incentives.
India ranks 12th in global chemical production. It is also the third largest country in Asia. Since the implementation of the trips principle for LPG in 1991, and shortly after WTO authorized trips in 1995, the Department witnessed a significant transformation from a producer of low value basic chemicals to a producer of high value knowledge chemicals. Intellectual chemicals involve a lot of investment related to intellectual property rights and patents.
Some profitable sub sectors in the chemical industry are:
1) Basic chemical industry -- basic chemical industry has entered a mature stage. It is expected to grow at the rate of GDP. One of the biggest challenges for the subsectors is the existence of old factories with a history that goes back to the pre liberalization era, thus limiting their ability to compete in the global market. In addition, the cost of raw materials is high and fluctuates. The sectors with good performance in the basic industries are:
Petrochemicals - with the increasing per capita consumption of petrochemical derivatives in China, the industry undoubtedly has great potential. At present, domestic per capita consumption is only a small part of the world level, but polymer and fiber intermediates are expected to experience huge demand. Some of the major industry players are reliance India Limited, ONGC, Haldia petrochemicals, Gail, BPCL.
Learn about oil and gas companies in India.
Inorganic chemicals and fertilizers - the industry's domestic consumption is still low compared to global levels. The industry is expected to experience significant growth in the near future. Agriculture provides a huge market potential. However, effective rural marketing and sales need to be implemented at the grassroots level to occupy the market. There are more than 130 fertilizer production plants in India, which produce urea, compound fertilizer, etc. Some of the major companies are iffco, national fertilizer company limited, RCF, Tata chemical.
2) Specialty chemicals - the industry is highly fragmented and most industries meet domestic demand. The industry accounts for about 5% of the entire chemical industry. Some of the major companies in the field are AkzoNobel, Dow Chemical, DuPont and Mitsubishi.
With the increase of demand and per capita consumption, the whole chemical industry is expected to grow accordingly. Because of the development of industry and the improvement of people's living standards.
