Flow Of Presentation

• Overview of International chemical Industry

• Introduction to chemical Industry in India

• Contribution to GDP

• Major Sectors in Chemical industry

• Chemical Industry structure in India

• Intro of Tata Chemicals

• Analysis Of Tata Chemicals

• Conclusion

 

Introduction to Chemical Industry in

India

• Chemical Industry in India is fragmented and

dispersed - multi product and multi faceted.

• Chemicals are sold directly to large customers

and through distribution channels.

• One of the fastest growing sector in Indian

economy.

• Indian Chemical Industry is 12th largest in

world and 3rd largest in Asia

 

Chemical Industry Scenario in India

• Chemical Industry Contributes 13% to expotrs

in India

• 13% of the total industrial output

• 10 % - 12 % growth per annum

• 2% of global chemical industry

• India – 2nd largest producer of agrochemicals

in Asia

 

Contribution to GDP

• Indian Chemical Sector contributes 7% to GDP

7%

87%

Contribution to GDP

Chemical

Others

 

Domestic Industry

Industry divided into 3 segments:

1. Basic chemicals

2. Specialty chemicals and

3. Knowledge chemicals.

Speciality

chemicals

26%

Basic

chemicals

57%

Knowledge

chemicals

17%

 

Import Of Chemicals

0

100

200

300

400

500

600

700

800

203

53

477

1 9

711

131

663

2 23

2001-02

2005-06

 

Export Of Chemicals

0

50

100

150

200

250

107

4017 13

100

230

121

53

24

153

2001-02

2005-06

 

Trends In Exports

0

5

10

15

20

25

30

35

40

45

2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

   U   S

    $   B   i    l    l   i   o   n

 

Global Chemical Industry

Japan

9%

India

2%

Korea

4%

China

10%

Latin

America

5%

nafta

25%

rest of

Europe

5%

EU

31%

Africa

1%

Asia

7%

Global Chemical Industry = $2.4 trillion

• Europe 36%

• China 10%

• India 2%

• NAFTA 25% 

 

Major Sectors in Chemical Industry• Soda Ash, Caustic soda, Liquid Chlorine, etc .

Alkali

• Aluminum Fluoride, Calcium Carbide, CarbonBlack, Red Phosphorous, etc.Inorganic

• Acetic acid, Methanol, Formaldehyde, Citric Acid,Chloro Methane, Ethyl Acetate, etc.Organic

• Pesticides/Insecticides registered under section9(3) of the Insecticide Act 1968.Pesticides

• Azo Dyes, Acid Direct Dyes, Basic Dyes, IngrainDyes, Oil Soluble Dyes, Sulphur Dyes, Food Coloursand Other Dyes.

Dyes & Dye stuffs

 

Future

• The chemical Industry in India has the potential to grow to around USD 100

Billion by 2010 according to KPMG’s analysis. This would imply an annual

growth rate of 15.5%.

 

Government Regulations

• Duty free import of specialized inputs /chemicals and flavoring oils is allowed to

the extent of 1% of FOB value of preceding financial year’s export.  

• Export of Special Chemicals, Organisms, Materials, Equipment and Technologies

shall be subject to fulfillment of the conditions indicated in ITC(HS).

• Exports and Imports shall be free, except where regulated by FTP or any other

law in force.

• The procedure for facilitating foreign direct investment has been simplified. Most

of the chemical items fall under the RBI automatic approval route for FDI/NRI

investment up to 100 per cent.

 

Tariff

Customs Duty

• The peak rate of Customs Duty on most Chemicals is 7.5%

• On basic raw materials like sulphur, rock phosphate, naturalborates is 5%

• On most building blocks & feedstock the duty is 5% (ethylene,propylene, benzene, toluene, xylene )

Excise Duty 

• On almost all chemicals the excise duty is 16%

 

Major Exports

• UAE

• United States

• United kingdom

• China

 

Chemical Industry structure in India

4%

6%

8%

8%

23%

51%

Sales

Punjab - 4%

T.N - 6%

U.P - 8%

Maharashtra - 8%

Other States - 23%

Gujarat -51%

 

Petrochemicals

• Domestic market size – US$700 million

• Fastest growing sector at 15%

• Reliance – key player in this market

0100000200000300000400000500000600000700000800000

ETHYLENE

PROPYLENE

 

Inorganic Chemicals

• US$ 2.5 Billion industry.

• Average growth rate 9% per annum

• 4.5% of global market

 

Organic Chemicals

• $1 Bn Industry

• Units Concentrated in western India

 

Paints & Dyes

• Market size – US$110 million.

• Growth rate – 12%

• Indian market is 6% of the global market

 

Pharmaceuticals

• India ranks 4th In terms of volume & 13th interms of value.

• Domestic market size – US$450 million

• Indian market is 1.6% of the global market

• Domestic market growth rate – 8 to 9%

• Bulk drug units concentrated around three areas:  – Bombay - Ankleshwar 

 – Hyderabad - Madras  – Chandigarh

 

Fine & Specialty Chemicals

• Market size – US$860 million

• Growth rate – 10-12%.

 

Agrochemicals

• Domestic market size – US$88 million

• Domestic market growth rate – 10% annually

• 2.5% of the global market.

• In India, insecticide commands major share76%.

• Globally, herbicides commands major share48% & insecticide only 29%.

• India is largest manufacture of basic pesticidechemicals among South Asia & Africa, next

only to Japan.

 

TATA CHEMICALS

• The Company was incorporated on 23rd Jan 1939 at Mithapur

(in Gujarat, India).

• Iodised salt segment and nitrogenous and phosphatic

fertilizers

• Service sector

• 2005 - Internalisation strategy

• 2006- acquisition of UK based Brunner Mond Group

• 2007- entered the fruits and vegetables distribution business

• 2008- acquired General Chemical Industrial Products, one of

the largest soda ash manufacturers in the US.

 

Innovation

•  leverage its expertise in chemicals and agri-

businesses

• TCL Innovation Centre in 2004

• climate change through "green chemistry"

• Flue gas treatment, carbon absorption and

nano glass-coatings for insulation

 

Sustainable chemistry 

• Highest standards of corporate governance andbusiness practices

• Safety, health and environmental issues

• Working with farmers

• Tata Kisan Sansars

• Tata Chemicals Society for Rural Development(TCSRD) – 1980

•  biodiversity of land along the coastline and thenesting sites of migratory birds

 

PRODUCTS

• Manufacturing Products

Soda ash

sodium bicarbonate

Bulk chemicals

 

FINANCIAL ANALYSIS