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Home Chemical Projects

The $7 Billion Chemical Export Gold Rush: How Indian Startups Can Dominate the WANA Market

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Table of Contents

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  • Introduction
  • The Importance of the WANA Market
    • Strategic Importance
    • Trade Benefits of WANA for India
      • Related: India Government Schemes For Entrepreneurs: Fueling Industrial and Manufacturing Growth
  • Export Performance of Chemicals to WANA
    • CHEMEXCIL Data 2023-24
  • Products India Exports to WANA
    • Segment Wise Contribution (2023-24)
      • View our books on Chemical Technology (Organic, Inorganic, Industrial), Fine Chemicals
  • WANA Drivers of Demand
    • Infrastructure Boom
    • Agriculture and Food Security
    • Emerging Personal Care Industry
    • Industrial Diversification
  • Support for Exporters from the Government
    • CHEMEXCIL’s Activities
    • Export Incentives
      • Related: How Indian Startups Can Capitalize on the UAE Chemical Export Market: A $1.2 Billion Opportunity
  • India’s Chemical Export Forecast for WANA
    • Emerging Areas of Growth
  • How Startups Can Target the WANA Chemical Export Market
    • Step 1. Determine the Market and Feasibility
    • Step 2. Compliance Issues
    • Step 3. Setting Up Manufacturing
    • Step 4. Trade and Marketing
    • Step 5. Transport and Distribution
      • View our Project Reports on Chemicals (Organic, Inorganic, Industrial) Projects
  • Challenges and Solutions
    • Challenges
    • Solutions
  • Case Study: Agrochemical Success in Morocco
  • Frequently Asked Questions
      • 1. Which Indian Chemical products have the greatest demand in WANA?
      • 2. Are halal certifications needed?
      • 3. Which Indian states are the most important centers for the chemical industry?
      • 4. What is the approximate lead time for starting exports to WANA from India?
  • Why Now Is the Right Time
      • Discover the Right Business for You With Our Startup Selector Tool
  • Role of NPCS in Startup Success

Introduction

The WANA (West Asia and North Africa) region has evolved as one of the most promising areas for Indian chemical export. As per the 61st annual report of CHEMEXCIL (Basic Chemicals, Cosmetics & Dyes Export Promotion Council set up under the Ministry of Commerce and Industry, Government of India), India’s chemical export to WANA increased by 109% in 2023-24, making it the fastest-growing area of export. This tremendous growth indicates an increase in business opportunities for the chemical industry in the Middle East and North Africa region and India’s increasing position as a dependable supplier of value-added chemical products.

This growth potential represents a unique opportunity for Indian startups and entrepreneurs. By a combination of strategic planning, quality compliance, and government schemes, a solid export footing can be set for India in the WANA region.

The Importance of the WANA Market

Strategic Importance

The WANA or Western Asia North Africa region refers to the Middle East alongside North Africa. It serves as a focal point for the:

  • Upstream oil and gas industries and sectors for downstream chemicals.
  • Construction and infrastructural works requiring paints, adhesives, and coatings.
  • Agriculture is driving trade and agrochemicals.
  • Cosmetics and Personal care industries, which are growing swiftly with the increase in consumer purchasing power.

Trade Benefits of WANA for India

  • Lower shipping expenses due to geographical proximity.
  • Strong cultural and business ties.
  • Preferential access through treaties and bilateral trade agreements.

Related: India Government Schemes For Entrepreneurs: Fueling Industrial and Manufacturing Growth

Export Performance of Chemicals to WANA

CHEMEXCIL Data 2023-24

YearExport Value (USD Mn)Growth (%)
2021-222,376—
2022-234,265+79%
2023-245,272+109%

Source: CHEMEXCIL Annual Report 2023-24

Chemical export

The data paints a clear picture of India’s growing presence and share within the WANA chemical industry

Products India Exports to WANA

India exports a diverse range of chemical products to WANA, which comprises of:

  • Organic Chemicals: Citric acid, acetic acid, formaldehyde
  • Inorganic Chemicals: Sulphuric acid, caustic soda
  • Agrochemicals: Fertilizers, pesticides
  • Dyes and Pigments: Reactive dyes, azo dyes
  • Cosmetics and Essential Oils: Herbal cosmetics, sandalwood oil, eucalyptus oil

Segment Wise Contribution (2023-24)

SegmentExport Value (USD Mn)
Organic & Inorganic Chemicals3,879
Agrochemicals645
Dyes & Pigments310
Cosmetics, Soaps, Toiletries & Oils438

Source: CHEMEXCIL Annual Report 2023-24

View our books on Chemical Technology (Organic, Inorganic, Industrial), Fine Chemicals

WANA Drivers of Demand

Infrastructure Boom

Construction megaprojects that are underway in Saudi Arabia, UAE, and Egypt are increasing the need for paints, adhesives, and construction chemicals.

Agriculture and Food Security

Targeted in Egypt, Morocco, and Saudi Arabia, the investment in agrochemicals is to enhance crop productivity in dry regions.

Emerging Personal Care Industry

The cosmetics industry in the Middle East is rapidly growing. This expansion creates a higher need for essential oils, herbal cosmetics, and specialty chemicals.

Industrial Diversification

Along with the other WANA economies, there is a move away from oil dependence which drives the need for specialized and performance chemicals.

Support for Exporters from the Government

CHEMEXCIL’s Activities

CHEMEXCIL helps exporters access the WANA markets via:

  • Buyer and seller meet in Ethiopia, Kenya, the UAE, etc.
  • Khimia 2023, Indo Beauty Expo, and Coating Expo Vietnam
  • Webinars on compliance and trade policy

Export Incentives

Support ProvidedDetails
MAI Scheme50% reimbursement for overseas registration of the products.
RoDTEPRefund of taxes for exported goods.
EPCGDuty-free capital goods.
Advance AuthorizationsZero duty on imported materials.

Related: How Indian Startups Can Capitalize on the UAE Chemical Export Market: A $1.2 Billion Opportunity

India’s Chemical Export Forecast for WANA

YearEstimated Export Value (USD Mn)
2024-255,850
2025-266,400
2026-277,100+

Emerging Areas of Growth

  • Green and sustainable chemicals
  • Chemicals for agro-farming in arid regions
  • Cosmetics are actively marketed for Halal and herbal certification

How Startups Can Target the WANA Chemical Export Market

Step 1. Determine the Market and Feasibility

Access CHEMEXCIL’s information to map in-demand items, including agrochemicals, cosmetics, and dyes.

Step 2. Compliance Issues

  • Acquire IEC (Import Export Code)
  • Register with CHEMEXCIL
  • Compliance with local WANA entities, such as the Saudi Food and Drug Authority and the UAE ESMA, also needs to be observed.

Step 3. Setting Up Manufacturing

  • Construct a compliant plant to GMP, ISO, and BIS standards.
  • Target high-margin small-batch specialty chemicals.

Step 4. Trade and Marketing

  • Join ArabPlast, Beautyworld Middle East, and AgroChem Expos.
  • Use B2B platforms and network through CHEMEXCIL.

Step 5. Transport and Distribution

  • Use major ports such as Jebel Ali, Dubai, Alexandria, and Tangier in Morocco.
  • Work with local distributors to penetrate the market.

View our Project Reports on Chemicals (Organic, Inorganic, Industrial) Projects

Challenges and Solutions

Challenges

  • Stringent compliance regulations.
  • Payment and trade security.
  • Price competition.
  • Supply chain interruptions.

Solutions

  • Hire consultants and obtain REACH and halal certifications.
  • Use LCs and ECGC insurance.
  • Focus on niche, value-added products.
  • Diversify suppliers and warehousing strategic locations.

Case Study: Agrochemical Success in Morocco

An Indian MSME that exported bio-based pesticides targeted Morocco and capitalized on the sustainable agriculture market. Over two years, the company experienced a 40% revenue increase. It also secured long-term distributor contracts in the process. Under the MAI scheme, CHEMEXCIL provided guidance and subsidy support, significantly streamlining this process.

Frequently Asked Questions

1. Which Indian Chemical products have the greatest demand in WANA?

Organic and inorganic chemicals, agrochemicals, cosmetics, and dyes.

2. Are halal certifications needed?

As far as food products and cosmetics are concerned, halal certification is strongly advised.

3. Which Indian states are the most important centers for the chemical industry?

Tamil Nadu, as well as Mumbai and Gujarat, are the most important centers of Indian chemical exports to the WANA region.

4. What is the approximate lead time for starting exports to WANA from India?

New and registered startups can begin within 3 to 6 months of getting the compliances done.

Why Now Is the Right Time

  • Demand for chemicals from the WANA region is growing at over 10% annually.
  • In 2023-24, India achieved 109% growth in exports.
  • CHEMEXCIL provides strong institutional backing for the exports.
  • Global trends are moving toward environmentally friendly and value-added chemical products.

Discover the Right Business for You With Our Startup Selector Tool

Role of NPCS in Startup Success

Niir Project Consultancy Services (NPCS) prepares Market Survey cum Detailed Techno Economic Feasibility Reports for entrepreneurs.

NPCS’s reports, which include the manufacturing process, raw materials, plant layout, and even the financials, are comprehensive.

Startups are able to explore the feasibility of establishing new industries or export ventures due to the thorough assistance NPCS offers.

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