chemicals sector overview · 2019-01-09 · growth drivers sector highlights per capita consumption...
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www.investindia.gov.in
CHEMICALSSECTOR OVERVIEW
GROWTHDRIVERS
SECTORHIGHLIGHTS
Per capita consumption of chemicals in India is 1/10th of the world's average. This makes India a very attractive destination for investment and growth.
Consumption driven demand:01
By 2030, 23% of the global middle class will probably be Indian, supporting strong demand for specialty chemicals in the automotive, personal products, water treatment and constructions segments.
Rising middle class population:02
One of the key economic growth drivers is the government’s investmentboost in infrastructure sector (Government provision of USD 92 Bn in FY 2018 budget as compared to USD 61 Bn in FY 2017).
Improving Infrastructure:03
14th 8thRanks
in exports and in importsof chemicals (excluding pharmaceuticalproducts) globally
80,000Covers more than
products
9%p.a.
Demand of chemical productsis expected to grow at
over the next 5 years
2.40 lakhFrom June 2014 to September 2018,
people have been trained by CIPET under various skill-imparting activities
USD 100 BnThe petrochemical market in Indiais expected to grow at a CAGR of10 % over the next 5 years to reach
by 2022
3.4%Contributes
to the global chemical industry
2 MnEmploys more than
people
Indian chemical industry is:largest in Asia withrespect to output
largest in the worldwith respect to output
Valued at USD 163 Bn in 2017
3rd
6th
GOVERNMENTINITIATIVES
2PCPIRs are specifically delineated investment regions with an area for theestablishment of manufacturing facilities for domestic and export-led productionin petroleum, chemicals & petrochemicals, along with the associated services and infrastructure. Government has approved 4 PCPIRs in the state of Andhra Pradesh (Vishakhapatnam), Gujarat (Dahej), Odisha (Paradeep) andTamil Nadu (Cuddalore and Naghapattinam). Once fully established the PCPIRsare expected to attract investments worth INR 7.63 lakh crore (USD 107 Bn) and employment generation (direct and indirect) is expected to be around33.96 lakh persons (3 Mn).
Petroleum, Chemical and PetrochemicalInvestment Regions (PCPIRs):
1100% FDI allowed under the automatic route in Chemicals sector except a fewhazardous chemicals.
100%FDI
Central Institute of Plastics Engineering and Technology (CIPET): 29 CIPET’s have been set up across India under the Department of Chemicals.The main objective of setting up of the institute is to develop manpower in different disciplines of Plastics Engineering & Technology as no similar institute was in existence in the country.
Chemicals Promotion and Development Scheme (CPDS):Under the CPDS, the Government provides Grant-in-aid for the creation of knowledge products through studies, survey, databank, promotion materials etc. to facilitate development of the sector.
CoE (Centres of Excellence) in the field of Petrochemicals:Provision of Grant-in-aid to educational/research institutes for setting up CoEs with a view to improve existing petrochemicals technology and promote development of new applications of polymers and plastics.
4Skill Development
3State-of-the-art infrastructure and enabling common facilities, to assist the sector move up the value chain and contribute to the economy more effectively.Four plastic parks have been approved in Madhya Pradesh, Orissa, Assam and Tamil Nadu.
Setting up of Plastic Parks
KEY SUB SECTORS
3rd largest India is the
producer of Agro-chemicals
50% of its current production
India exports about
and exports are likely to remain a key component of the industry
compared with a global average ofThis low consumption is the result of low purchasing power in agricultural areas, unawareness of the existing products and difficulty of access. With the increasing awareness and purchasing powercapacity, an increase in demand is foreseen
Pesticide consumption in the country is 0.6 kg/hectare,
AGRO CHEMICALS
3rd largest India is currently the world’s
consumer of polymers and growth in plastic demand willdrive up consumption further
14% The specialty chemicals market has witnessed a growth of
in the last five years; the market size is expected to reach
USD 70 Bn by 2020
business in India
Low per capita paper consumption in India, compared to the global average, suggests there is a good opportunity for the paper chemicals
Growth drivers include a growing construction industry and adoption ofadvanced coating, ceiling and polymer-based reinforcing material inconstruction as well as plastics, paints and coatings for theautomotive sector
SPECIALITY CHEMICALS
3-10 kg/hectare
INDUSTRY CLUSTERS/ZONESPCPIR’S AND REFINERIES
Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR)
Reliance Industries Limited - Jamnagar, Gujarat
Indian Oil - Paradip, Odisha | Panipat, Haryana | Koyali, Gujarat | Mathura, Uttar Pradesh | Haldia, West BengalBarauni, Bihar | Bongaigaon, Assam | Guwahati, Assam | Digboi, Assam
HMEL - Bhatinda, Punjab NRL - Numaligarh, Assam Bharat Oman Refineries Ltd - Bina, Madhya Pradesh ONGC - Tatipaka, Andhra PradeshCPCL - Manali, Tamilnadu | Cauvery Basin, Tamilnadu Bharat Petroleum - Kochi, Kerala | Mumbai, Maharastra MRPL - Mangalore, KarnatakaEssar - Vadinar, Gujarat
Hindustan Petroleum- Visakhapatnam, Andhra Pradesh | Mumbai, Maharashtra
UPCOMINGPROJECTS
Project AnnouncementYear
InvestorCompany
Investment Value (USD Mn)
Petrochemical
Petrochemicals
Petrochemical
Petrochemical
Petrochemical
Petrochemicals
Petrochemicals
Petrochemicals
44,000
9,500
5,700
4,300
1030
61
3,000
4,000
62
153
155
Mega Refinery
Refinery
Saudi Aramco, Indian PSUs
Refinery
Petrochemical ComplexHPCL + GAIL
Ethylene Glycol & Polypropylene
Petrochemical Complex
H2O2, PVC
Reliance
Sabic
IOCL
Sanmar
HMEL
BPCL
Solvay
Refinery
Expansion of Polymer Plant
Expansion Carbon Black
Himadri Specialty Chemicals
Specialty Chemicals
Specialty Chemicals
Specialty Chemicals
SudarshanChemicals Expansion
Petrochemicals(50% stake in OPAL)
2018
2017
2017
2018
2018
2017
2017
2018
2018
2018
2017
Sector
KEY PLAYERSIN INDIA
KEY STAKEHOLDERS
Chemicals Export PromotionCouncil (Chemexcil)
Indian Specialty ChemicalManufacturers' Association
Pesticides Manufacturers andFormulators Association (PMFAI)
Department of Chemicals and Petrochemicals, Ministryof Chemicals and Fertilizers
Indian ChemicalCouncil (ICC)
Indian PaintAssociation (IPA)
Crop Care Federation
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