Multinational companies wrestle with Indian chemical market

Despite the global economic downturn and the European debt crisis, the Indian Chemical Industry has maintained its growth momentum. At the 5th Indian Chemical Industry Outlook Annual Meeting held in Mumbai, experts predict that the overall chemical industry in India will continue to grow at an annual rate of 8% to 9% this year, and some industries may even increase by 10% to 12%. This figure is much higher than the 7% to 8% growth rate of GDP in India. The potential of the Indian chemical market is continuously attracting Western companies to make strategic adjustments and accelerate investment in the Indian chemical industry.

Mr. Jose Cyriac, Secretary of Indian Ministry of Chemical Industry, said at the meeting: “At present, India’s chemical industry is about US$1080 billion, accounting for about 7% of India’s GDP. Compared with developed countries, India’s per capita chemical Consumption is still very low, so domestic demand has great potential for growth in the coming years.” The Indian government will use the preferential policies of the Petroleum, Chemicals and Petrochemical Investment Area (PCPIR) to develop the petrochemical industry, and plans to establish multiple plastic processing parks throughout the country. To accelerate the pace of polyolefin expansion.

Huntsman, a specialty chemical company, is very optimistic about the growth potential of the Indian market. Tony Hankins, CEO of Huntsman Asia Pacific, stated: "The Indian market has huge opportunities. Today's global trend has the greatest growth opportunities for the chemical industry in India, from demographics, energy management, food, water There are significant opportunities in many areas such as resources and infrastructure."

Hankins said that by 2020, India will become the most populous country in the world. 33% of the population will live in cities and the per capita GDP will almost double, from US$3,000 per person in 2010 to US$5,700. This will generate huge market demand, including housing, energy, food and clean drinking water, as well as infrastructure improvements. In addition, according to the “Twelfth Five-Year Plan” development plan, India’s transportation infrastructure investment will reach US$1 trillion, and US$150 billion will be invested in the energy sector. Both will provide space for the development of specialty chemicals.

The rapid development of the Indian economy has led to a continuous increase in the middle-class population in the country, which has led to an unprecedented increase in car sales. In order to meet the rapid development of the automotive industry in India and to achieve the goal of lightweighting, more and more plastics are used in the automotive industry, especially high-grade plastic compounds. Borouge is seeking opportunities to further expand its operations in India and is currently evaluating the establishment of a polypropylene compounding plant in India. It is expected that the site will be initially determined this year and the project will begin implementation next year.

Mitsubishi Chemical Corporation continues to expand its market through Indian subsidiary Mitsubishi Chemical (India), including fertilizers, insecticides, synthetic fibers and synthetic resins. This year, Mitsubishi Chemical acquired a stake in a Peruvian phosphate company to provide sufficient raw materials for its phosphate fertilizer production in India. In November 2011, Mitsubishi Chemical also increased its stake in Deccan Fine Chemicals, a manufacturer of active ingredients and intermediates for agrochemicals in India. In addition, Mitsubishi Chemical has continued to expand India's refined terephthalic acid industry chain. Capacity, and involved in automotive plastics industry in India.

Sumitomo Chemical Co., Ltd. reorganized its three Indian subsidiary companies earlier this year. The new company name is Sumitomo Chemical (India). According to Sumitomo Chemical's medium-term management plan, by 2015 India will achieve annual sales of 15 billion yen (about 186 million US dollars), pre-tax profit of 1 billion yen, will gradually expand the agrochemicals, animal feed and households Insecticide production capacity.