Wednesday, December 30, 2009

Chemical Markets

Per capita consumption of chemicals in India is one of the lowest in the world. Currently, per capita consumption of most products of chemical industry in India is about 1/10th of the world average. With rising per capita income, the market potential is very attractive.

Inorganic chemicals: The inorganic chemicals industry had an output of approximately 5.9 million tonnes in 2006-07. Of this, alkaline chemicals contributed 5.26 million tonnes, or nearly 90 per cent and basic inorganic chemicals contributed 0.6 million tonnes. Among alkaline chemicals, soda ash is the largest segment, contributing to 40 per cent of the output caustic soda has a 36 per cent share and liquid chlorine has 24 per cent. Basic inorganic chemicals have grown at a CAGR of 10 per cent, from 374,000 tonnes to 602,000 tonnes. As a result of faster growth, the share of basic inorganic chemicals has gone up, from 8 per cent to 10 per cent. Carbon black, is the biggest segment in basic inorganic chemicals, with a share of nearly 71 per cent of the output. Calcium carbide with 16 per cent and titanium dioxide with 10 per cent, are the other significant segments.

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