CHEMICALS PPT

CHEMICALS

VIPUL ARORASHREY VIRMANI

Overview

Chemical sector of India is one of the oldest industrial sectors in India. It has contributed significantly towards the phenomenal growth of Indian industry and economy.

The chemical sector of India directly or indirectly acts as a supplier of many of the commodities of daily use.

It is extremely scientific in its approach and facilitates the provision of many of the important chemicals which are the basic materials for end-products like paper, leather, paint, varnish, textile, and so on.

The chemical sector in India stands as the keystone of the agrarian and industrial development which provides support for other industries.

It is estimated to be worth around US$ 35 billion, which is almost 3% of the country's gross domestic product.

The investment in chemical sector of India is around US$ 60 billion. It generates employment of about 1 million.

http://www.economywatch.com/world-industries/chemical/india.html

The chemical sector of India provides around 13-14% of total exports and its total imports are about 8-9%.

It is ranked 12th globally and 3rd in Asia. The per capita consumption of chemical industry products in India is .01% of the

global average One of the fastest growing sectors of Indian economy.

Chemical Industry in India is fragmented and dispersed - multi product and multi faceted.

Chemicals sold directly to large customers and through distribution channels. Distribution channels mostly consist of stockiest and dealers spread all over India addressing small segments and retail market.


The Chemical Industry in India is based on the idea of Diversification. Depending on the product categories Chemical Industry in India is divided in following sectors:

Inorganic Chemicals - In this sector the growth rate is near about 9% and the chemicals produced in this sector are mainly used in alkalis, fertilizers, detergents and glass.

Organic Chemicals - 1 Billion Dollar industry. Covers a wide range of chemicals. Units concentrated mostly in the Western India

Pesticides, Fertilizers and other Agro-chemical products- This sector of the Chemical Industry in India account for almost 2.5% of the global market. It possesses an impressive domestic market growth rate of 10%.

Specialty and Fine Chemicals like Dyes and Paints- This sector is characterized by high level of fragmentation. The sector is involved in production of paints, dyes, inks, polymers and a lot of other chemical products. The sector has a growth rate of near about 12%.


Export contribution 2008

Domestic Industry

http://business.mapsofindia.com/india-petroleum-industry/chemical-sector-in-india.html

Major production centre's :

Mumbai Bulsar Pune New Delhi Hyderabad Ahmedabad. Baroda

STATE WISE SHARE IN PRODUCTION OFSELECTED MAJOR CHEMICALS

Source: Ministry of Commerce and Industry

Trend in Exports Exports of chemicals decreased by 1 percent Organic/inorganic chemicals showed volume

increase.

Inorganic chemicals

Total export of $823.81 million in

year 2007-08 was recorded.

% Growth of 2.81

Major export to China

Organic Chemicals

Total export of $7,170.71million in


% Growth of 25.18

Major export to USA

http://commerce.nic.in/eidb/ecom.asp

Fertilizers

Total export of $25.92 million in


% Growth of 138.19

Major export to Nepal


Dyes and Paints

Total export of $1,323.23 million in


% Growth of 31.34

Major Export to Germany

Inorganic chemicals : Detergents and glass Organic chemicals : Explosives and drugs Plastic and petrochemicals : PVC and plastic

products Dyes and Dyes pigments : Paints, ink and

polymer

Major Export Destination for Inorganic Chemicals

Major export destinations of inorganic chemicals are CHINA P RP and USA.

Total export of the commodity in year 2007-08 was recorded as USD 7.89 mn

CHINAP RP accounts for 19.06% of total export of inorganic chemicals

Second major destination of inorganic chemicals is USA.

Total export to USA is 6.51% of total export of the commodity.

Apart from CHINAP RP and USA , inorganic chemicals is also exported to IRAN ,U ARAB EMTS ,ROMANIA ,INDONESIA ,SRI LANKA DSR ,BANGLADESH P


http://commerce.nic.in/eidb/ecomxcnt.asp


Major Export Destination for Organic Chemicals

Major export destinations of organic chemicals is USA.

Total export of the commodity in year 2007-08 was recorded worth USD 6.87 mn

USA accounts for 10.86% of total export of organic chemicals

Second major destination of inorganic chemicals is CHINAP RP.

Total export to CHINAP RP is 8.72% of total export of the commodity.

• Apart from USA and CHINAP RP , organic chemicals is also exported to PAKISTAN IR, GERMANY , INDONESIA , KOREA RP , SPAIN , NETHERLAND, SINGAPORE


Commodity: 29 ORGANIC CHEMICALS

Country: U S A

S.No. \Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

1 Values in USD million 33.6 38.8 54.1 67.05 69.7

2

%Growth

15.67 39.25 23.8 3.86

3 Total export of commodity 1,297,459.37

2,594,964.01

2,886,978.42

4

%Growth

25.38 32.19 20.67 11.25

5 %Share of country 11.66 10.76 11.33 11.63 10.86

6 Total export to country 5,279,854.10

6,185,157.26

7,682,808.22

8,536,848.47

8,338,806.90

7

%Growth

17.15 24.21 11.12 -2.32

8 %Share of commodity 2.87 2.83 3.17 3.53 3.76


Commodity: 29 ORGANIC CHEMICALS

Country: CHINA P RP

S.No. \Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

1 Values in USD million 22.63 36.1 45.2 52.15 55.9

2%Growth

59.89 25.13 15.18 7.32

3 Total export of commodity 1,297,459.37

1,626,741.47

2,150,402.15

2,594,964.01

2,886,978.42

4%Growth

25.38 32.19 20.67 11.25

5 %Share of country 7.85 10.01 9.48 9.04 8.72

6 Total export to country 1,357,905.84

2,523,296.89

2,992,491.40

3,752,978.02

4,359,741.55

7%Growth

85.82 18.59 25.41 16.17



Major Export Destination for Fertilizers

Major export destination of fertilizers is NEPAL


NEPAL accounts for 18.49% of total export of fertilizers

Second major destination of fertilizers is BANGLADESH RP.

. Apart from NEPAL and BANGLADESH RP, fertilizers is also

MALAYSIA ,U ARAB EMTS ,SRI LANKA DSR ,U K ,CHINA P RP ,ITALY ,OMAN ,KUWAIT


Commodity: 31 FERTILISERS.

Country: NEPAL

S.No. \Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

1 Values in USD million 2 bn 1.8 1.07 1.72 4.28

2%Growth

-13.14 -42.55 60.11 149.2

3 Total export of commodity 3,331.30 5,895.60 5,070.19 4,928.68 10,437.32

4%Growth

76.98 -14 -2.79 111.77

5 %Share of country 29.09 14.28 9.54 15.71 18.49

6 Total export to country 307,578.76 333,903.93 380,738.81 420,138.23 606,348.08

7%Growth

8.56 14.03 10.35 44.32



Major Export Destination for Dyes and Pigments.

Major export destination of Dyes and Pigments. is GERMANY.


NEPAL accounts for 11.46% of total export of Dyes and Pigments.

Second major destination of Dyes and Pigments. Is USA.

. Apart from NEPAL and BANGLADESH RP, Dyes and Pigments. is also

ITALY ,CHINA P RP ,TURKEY ,NETHERLAND ,U K,BELGIUM ,BRAZIL ,KOREA RP


Export for India from last years

India’s total export in year 2005-06 was $5.95 bn.

India’s total export in year 2006-07 was $10.85 bn

GROUP - WISE EXPORT & IMPORT OF CHEMICALS

Group

ITC - HS Commodity Level Code

TRADE

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

INORGANIC CHEMICALS

*

2 DIGIT- 28

Export

1259

1946

1949

2871

3431

3629

Import

5730

5579

5916

8130

10446

11473

ORGANIC

CHEMICALS

2 DIGIT -29

Export

7624

10190

12975

16269

21504

25950

Import

8795

10695

14363

18785

22776

27330

DYEING, TANNING

AND COLOURING

MATTER

2 DIGIT -32

Export

2436

2943

3112

3111

3750

4562

Import

1138

1344

1617

1878

2245

2720

PESTICIDES

4 DIGIT -3808

Export

1356

1487

1746

2096

2791

2877

Import

362

287

501

712

754

806

Chemexcil Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion

Council, popularly known as CHEMEXCIL was established in the year 1963 with it's headquarters at Mumbai, with the objective of making concerted efforts to promote exports of Basic Organic and Inorganic Chemicals, Dyes, Pesticides, Soaps, Detergents, Cosmetics, Toiletries and other products like Essential Oils, Castor Oil etc.

Provisions in India’s Foreign Trade Policy Expansion of FMS – Focus Market Scheme (FMS) has been

expanded by adding 26 new markets, out of which 16 are in Latin America and 10 in Asia-Oceania. Incentive under the scheme has been enhanced from 2.5% to 3%.

Expansion of FPS – Incentive under the scheme has been enhanced from 1.25% to 2%

Duty free import of specialized inputs /chemicals and flavoring oils is allowed to the extent of 1% of FOB value of preceding financial year’s export.

Duty exemption and remission schemes-The Government has been taking various steps for augmenting the export. Some of the important measures taken by the Government are as follows:-

Customs Duty 1.)The peak rate of Customs Duty on most Chemicals is 7.5% 2.)On basic raw materials like sulphur, rock phosphate, natural

borates is 5% 3.)On most building blocks & feedstock the duty is 5% (ethylene,

propylene, benzene, toluene, xylene ) EPCG scheme Zero duty EPCG scheme - A ‘zero duty’ EPCG scheme has

been introduced in FTP 2009-14 for a limited period i.e. upto 31-3-2011.The scheme is available for exporters of basic chemicals.

MARKETING DEVELOPMENT ASSISTANCE SCHEMEFinancial assistance is provided for export promotion activities implemented by EPCs and Trade Promotion Organizations.Assistance is provided for participation in:

1.Trade Fairs and Buyer Seller meets abroad or in India and

2.Export promotions seminars.

3.Financial assistance with travel grant is available to exporters traveling to focus areas, viz., Latin America, Africa, CIS region, ASEAN countries, Australia and New Zealand.

Quality Standards

ISO STANDARDS FOR CHEMICALS Inorganic chemicals: ISO 1552:1976(liquid chlorine) &

ISO 3425:1975( sulphur) Organic chemicals: ISO 1995:1981( Aromatic hydrocarbons) &

ISO 5280:1979( Xylene)

The chemical industry is one of the most regulated activity sectors, where regulation includes specific quality systems such as good laboratory practice (GLP), good clinical practice (GCP) and good manufacture practice (GMP).

http://www.nist.gov/public_affairs/chemical.htm

THANK YOU

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CHEMICALS PPT