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The chemical industry is a highly versatile segment in the overall industrial economy of India. It is one of the oldest domestic industries in India, contributing significantly to both the industrial and economic growth. Over the past ten years, there have been breath-taking changes in the chemical industry, especially in India.

The chemical industry has been linked with almost every other industrial activities starting from food processing to rubber, leather, and textile processing.  There is, in fact, hardly any segment where chemicals do not feature. 

The industry is broadly segmented into four major categories-Inorganic Chemicals, Organic Chemicals, petrochemicals based specialities, and agro oriented chemicals and a feasibility study of chemical industrial projects.

The chemical industry currently produces nearly 70,000 commercial products, ranging from cosmetics and toiletries, to plastics and pesticides.Indian chemical companies have prominence in the global market. Global chemical companies present in India have benefited from many opportunities as a result of favorable factors such as skilled workers, low manufacturing cost and strong domestic demand.

The Agro-oriented chemicals like guar gum, starch, citric acid, sorbitol, yeast and others, valued at over Rs 1450 billion, apart from contributing 14% of the industrial sector’s contribution to GDP, industrial chemicals have a 10% share in the overall exports of India. It is spread over some 2000 units, mostly in the small scale sector. Nonetheless, over a third of the market is controlled by top 10 players.

Petrochemicals, pharmaceuticals, synthetic fibres, fertilizers and pesticide, paints and dyestuffs constitute over 85% of the market. The remaining 15% comprises a wide range of chemical intermediate and industrial or speciality chemicals which have a market of over Rs 230 billion (including imports of about Rs 15 billion).

The chemical industry remains concentrated in the western region, with a near 48% share of investment. In the western region, Gujarat makes the largest contribution to the chemical industry’s production activity. The Indian market for petrochemicals will increase four times in the next ten years. It will witness a sustained double-digit growth rate in the coming years.

India’s speciality chemicals market represents around 24% of the total chemical industry Exports of speciality chemicals from India and are poised to grow from US$4 billion in 2007 to US$13 billion in 2013, representing a growth rate of 22%.The speciality chemicals industry in India is expected to grow at a growth rate of 15%, almost double the growth of the global speciality chemicals industry.

With India being an emerging economy with high growth rates and a strong domestic demand the chemical industry in India will be one of the most booming industries in the coming years.

How to determine Feasibility Study for Industrial Projects?

The feasibility study is the study of the market’s pivotal point to determine the viability of an industrial project. It explains industrial based projects, external influencers such as legal obligations, and required investment and expected returns. The study helps in the collection of information related to the industrial plan and economy in general to determine the probable performance of the project.

Here are the primary points in determining the feasibility of chemical plant projects.

1. Target Market Research

Project reports on the market are the key factors to consider before entering into any project. The project owners have to conduct a detailed survey about the target market to determine the potential profit he is likely to get from the project.

Also, market research helps in identifying the availability of raw material, perfect product design, and product prices through understanding consumer behaviors. On market research, the project owner tends to conduct surveys pertain the product, supply and demand, product price, competition, and market distribution.

2. Technical and Procedural details

A technical study regards defining industry concerns and economies of scale and the sources of technology. The study covers the target location of the project, machinery and other assets required to run the industry, waste treatment, sources of raw materials, and participation agreement, which is licensing, taxation and other legal contracts.

3. Costs and Financial Preparedness

It regards the collection of financial requirements, analysis, and estimation of investment and operation cost of a project.

Feasibility study for a chemical industrial project influences the creation of a business plan for a chemical company, which is vital in the implementation ofchemical business ideas.

Products used in Inorganic Chemicals Manufacturing Process

The chemicals produced in the Inorganic Chemicals Manufacturing Process are intermediate products that are used as inputs in industrial and manufacturing processes. They are those that are not carbon-based; that is, they are minerals that lack carbon atoms, unlike organic compounds.

The inorganic chemicals industry consists of two segments–basic inorganic chemicals such as potassium, nitrogen and phosphorus products, sulfates, alkalis, among others, and specialty chemicals such as catalysts, pigments, and fuels.

1. Basic Inorganic Chemicals

They are chemicals that manufacture inorganic products such as plastics and fertilizers such as potassium nitrates. They are produced in large quantities. The basic inorganic compound industry is characterized by its high degree of fragmentation across areas with a large volume of production.

They also have a high energy cost, low import tariffs, and infrastructural impediments, which significantly affects their competitiveness.

2. Specialty Inorganic Chemicals (SIC)

They are chemicals with diverse and complex production processes. They are manufactured through a combination of simple process steps such as chemical reaction processes, and equipment, which are modified to create the desired specialty product.

Specialty inorganic chemicals are characterized by the quality and purity of raw materials. The characteristics are the key factors influencing the environmental impacts of products produced as there are opportunities to reuse or recycle these products.

Reasons for buying our reports:

This report helps you to identify a profitable project for investing or diversifying into by throwing light to crucial areas like industry size, market potential of the product and reasons for investing in the product

This report provides vital information on the product like its characteristics and segmentation

This report helps you market and place the product correctly by identifying the target customer group of the product 

This report helps you understand the viability of the project by disclosing details like machinery required, project costs and snapshot of other project financials

The report provides a glimpse of government regulations applicable on the industry

The report provides forecasts of key parameters which helps to anticipate the industry performance and make sound business decisions.

Our Approach:

Our research reports broadly cover Indian markets, present analysis, outlook and forecast for a period of five years.

The market forecasts are developed on the basis of secondary research and are cross-validated through interactions with the industry players

We use reliable sources of information and databases. And information from such sources is processed by us and included in the report