Chlorine Market is Fastest Growing Chemical Sector to 2019 – Due to Increased Demand From the Chemical/EDC/PVC Industries

The chlorine market is estimated to witness a CAGR of 4.9% between 2014 and 2019 in terms of value, and is anticipated to generate a global market value of $33,362 million by 2019

Chlorine is widely used in the EDC/PVC, inorganic chemicals, organic chemicals, C1/C2, aromatics, chlorinated intermediaries, isocyanates, propylene oxide, pulp & paper, water treatment, and various other industries global. In 2013, chlorine had a total demand of 64,072KT globally.

The Asia-pacific region is the biggest market of chlorine, accounting for more than half of the total global demand. There is a lot of scope in Asian and North American market, with the boom in the construction industry and increased use in chemical industry. Among the applications, EDV/PVC leads in the consumption of chlorine and accounted for more than 35% of chlorine produced globally.

The regional segments include Asia-Pacific, Europe, North America and Rest of the World. The various end-user industries covered in the report are; EDC/ PVC, C1/C2, Aromatics, Organic chemicals, Inorganic chemicals, Chlorinated intermediaries, Isocyanates, Propylene oxide, Pulp and pape, Water treatment and Others (TiO2 and HCl) .

The report also includes company profiling and competitive strategies adopted by various market players including The Dow Chemical Company (U.S.), BASF SE (Germany), Occidental Petroleum Corporation (U.S.), Formosa Plastics Corporation (Taiwan), Ineos Group Ltd. (U.K.), Olin Corporation (U.S.), PPG Industries (U.S.), Tata Chemicals Limited (India), Tosoh Corporation (Japan), and Hanwha Chemical Corporation (Korea).

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We need to bring our chemical industry to the desired level: V-P

Highlighting the challenges confronting educational institutions in terms of outdated syllabus, lack of faculty and poor infrastructure, Vice-President and Chancellor of Panjab University (PU), Mohd Hamid Ansari, on Saturday said that it is important to make available to the students the best possible environment and required resources for education.

Ansari was delivering the inaugural address of the 67th annual session of the Chemical Engineering Congress (CHEMCON) at PU. He said that it is essential in to equip students with necessary tools and knowledge for their professional careers.

The four-day international conference is being organised on the theme, ‘Chemical Engineering-Emerging dimensions and challenges ahead’, by the Indian Institute of Chemical Engineers (IIChE) in collaboration with Dr S S Bhatnagar University Institute of Chemical Engineering and Technology (UICET), PU.

Quoting a Planning Commission paper, Hamid Ansari lauded the role of chemical engineering and stated that the Indian chemical industry in 2010 had the size of $108 billion and accounted for approximately seven per cent of the Indian GDP, while the chemicals sector accounted for about 14 per cent in the over all index of industrial production. He informed that in terms of volume, India is the third largest producer of chemicals in Asia after China and Japan.

“Despite its large size and significant GDP contribution, the Indian chemical industry represents only around three per cent of global chemicals. This suggests that much more needs to be done to bring our chemical industry to the desired level in terms of size, technology and products, given our aspiration to emerge as a technology-driven manufacturing hub in the world,” said Ansari. He also referred to the relevance of chemical engineering in scientific advances in diverse fields like genetic foods, smart materials, drug delivery systems, agro-based technology, biotechnology, microelectronics, nanotechnology and advanced materials.

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Pesticides law to protect Indian industries: Agriculture minister

Calling for winding down India’s dependence on imported agro-chemicals, Agriculture Minister Radha said on Thursday that the Pesticides Management Bill to protect domestic industries from multi-nationals will be tabled in the current session of that resumes on April 21.

Speaking at an event of the Crop Care Federation of (CCFI) here, the minister assured the agro-chemical industries that “their interests will be taken care of while drafting the long-awaited Pesticides Management Bill”, the CCFI said in a release here.

“The government firmly supports the growth of local Indian agro-chemical industries. However, to be truly competitive at the global level it is essential that Indian companies start investing more in research and development of new products,” Singh said.

“We believe the Indian industry has the potential to provide farmers with world class products at affordable rates for which they are at the mercy of multi-national companies,” he added.

Earlier on Thursday, Singh said at an event organised by the National Cooperative Development Corporation that in a scenario of growing grain stock and increasing production of high value commodities, improving market linkage assumes great significance.

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Meat of the matter: How beef ban affects leather, exports and chemical industry

The once-popular New Martin Hotel in Mumbai’s Colaba wears a dismal look these days. The footfall has not been the same since the Maharashtra government banned beef earlier this month. “Beef steak, beef chilly fry masala and beef chilly dry were some of our most popular dishes, but we had to take them off the menu post the ban. There has been at least a 50% drop in footfall since,” says a waiter at the restaurant.

Ahead of the parliamentary elections in 2014, a newspaper report quoted then Bharatiya Janata Party (BJP) prime ministerial candidate Narendra Modi as saying that the only revolution that took place during the UPA’s tenure was the “pink revolution”, an euphemism for the meat business. The report also cited the Ministry of Food Processing data to say that India exported 1.89 million tonnes of beef in 2012-2013, which is a 50% increase over five years ago.

The Agricultural and Processed Food Products Export Development Authority (APEDA) website quotes 2007 figures to say that the meat production in India is estimated at 6.3 million tonnes, making it the fifth largest meat producer in the world. Bovine meat constitutes 62% of the total yield. About 31% of the total bovine meat comes from cattle. All that seems set to change.

Following in the footsteps of the Maharashtra government, Haryana has also put a ban on cow slaughter and the sale of beef. While most people glimpse an effort to protect Hindutva sentiments in the move to save the ‘holy cow”, many non-beef eaters too are irked by government interference in what should be a personal dietary preference. “I’m a practising Hindu and I don’t eat beef. But the government shouldn’t be dictating whether one may or may not eat beef,” says 35-year-old Shaswat Ghosh (name changed on request).

Meanwhile, the ban in Maharashtra and Haryana has beef traders across the nation in jitters. “Export too will be affected. The government has not thought of the thousands who have been involved in this business for generations,” says a beef exporter in New Delhi, on condition of anonymity.

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Chemical industry as a Smart Cities enabler

India is witnessing a wave of migration from the rural to urban areas. This trend is likely to continue as the economy advances significantly. According to a McKinsey Global Institute report, India’s urban population is projected to increase from 340 million in 2008 to 590 million by 2030. This is going to create tremendous pressure on the already crumbling infrastructure in existing cities. Bearing this in mind, the Government of India (GOI) has put its weight behind development of 100 Smart Cities in the country.

Traditionally cities are created over thousands of years. Development of a Smart City implies compressing the process and making it happen in short span of 3-4 years. India has the advantage to learn from many cities around the world – Singapore, London, Barcelona, Flanders in Belgium and more. Every Smart City is unique and an evolution over the previous ones.

Critical aspects of a city such as managing resources, stabilising pollution levels, allocating energy are traditionally calculated independent of each other. There is an opportunity in putting together a holistic blue-print and making these cities into a tangible reality.

I believe the chemical industry has a key role to play in the sustainable evolution of the smart cities in India. The chemical industry is the energiser of economic development. Currently, the industry contributes about 6.5 to 7% to the GDP. Bearing this ratio in mind, we are looking at an opportunity of around $ 0.7 billion in development of each city as the estimated investment is about $1 billion,according to USIBC Financial Strategies for Smart Cities.

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Chemical Industry demands reduction of import duty on feedstock from Budget 2015-16

The Indian Chemical sector is a key constituent of economy, accounting for around 9% of total exports as well as imports of the country and 2.51% of its overall GDP. In terms of volume, it is 12th largest in the world and 3rd largest in Asia. Currently, per capita consumption of products of chemical industry in India is about 1/10th of the world average and its size is estimated at around $35 billion approx, which is equivalent to about 3% of India’s GDP.

The industry, which is widely divided into many segments such as organic chemicals, specialty chemicals, chlor-alkali, pesticides, colorants and alcohol based chemicals is estimated approximately at $144 billion which is about 4% of the global market of $3.6 trillion. Together, Gujarat, Maharashtra and Uttar Pradesh account for more than 50% of Gross Value Add (GVA) and Gross Output of the chemical industry.

India’s low per capita chemical consumption coupled with rising income levels offers significant growth opportunities for the industry. However, for capitalizing on these opportunities, the industry needs to address the challenges of appropriate skilling of the workforce, bridging technology gaps, securing access to raw material, ensuring compliance to global standards and creating industry specific infrastructure.

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Fertilising India’s petrochemical industry

Indian minister for chemicals and fertilisers H N Ananth Kumar is confident that India will be an important global player in the petrochemical sector and is aiming to almost triple the Indian market to $400 billion in five years’ time.

Our prime minister Narendra Modi understands the chemical industry like back of his hand as he was chief minister of Gujarat – India’s hub for petrochemicals – and knows that development of that sector will be the game-changer for the Indian economy. There is a paradigm shift in the approach of our government for developing PCPIRs. We want to derive more value from fuel sources, especially crude oil, and crack other materials for downstream industries like plastic processing, polymers and pharma.

By building cracker units at our refineries and downstream facilities through PCPIRs, we are addressing the challenges presented by lack of feedstock. Presently, we are only making use of 2.7% of our refinery output for petrochemical industries. We aim to increase it to 7%, thereby increasing our market from $150 billion to close to $400 billion. This will generate 3.7 million jobs. It will revolutionise and metamorphose the entire industry and it will be a reality in the next five years.

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SABIC to collaborate with CIPET, CSIR to strengthen research in Indian chemical industry

Saudi Arabia’s SABIC, one of the world’s top petrochemical companies, today said it had entered into strategic collaborations with India’s Central Institute of Plastics Engineering and Technology (CIPET) and Council of Scientific and Industrial Research (CSIR) to strengthen academic and research capabilities in the Indian chemical industry.
The agreement in this regard was signed in the presence of Mr Surjit Kumar Chaudhary, Secretary, Chemicals & Petrochemicals and President, CIPET, Dr G Anupama, Joint Secretary, CSIR, Ministry of Science & Technology and Saudi Arabian Ambassador in Delhi Saud Mohammd Alsati.
“These partnerships, while paving the way for close collaboration with both the organisations in multiple research areas, are testimony of SABIC’s commitment to partner in the government’s ‘Make in India’ vision by strengthening the chemicals and Plastics industries’ research ecosystem in the country, boosting skills development and contributing to India’s growth story,” a press release from SABIC said.

Chemical industry to gain from ‘Make in India’ initiative

India, with its skilled manpower and flourishing end-user industries, has the right ingredients to emerge as the global hub for chemical manufacturing provided the government undertakes tax & labour reforms and facility land availability for the industry. This was the message from the ‘Indian Chemical Industry outlook’ conference, organised by Indian Chemical Council (ICC) on March 3-4, 2015 in Mumbai.

At present, India is the net importer of chemicals as the availability to feedstock is a major challenge. Add to this woe is the inverted duty structure as a result of which raw materials (inputs) are taxed at higher rate than the end product. This discourages local manufacturing.

“India is highly import dependant for most of its chemical needs. However, it is placed at a point of inflection for rapid growth. India can explore many alternative feedstock options such as coal gasification, syngas, pet coke, etc. If right technologies are used, the challenge of feedstock can be solved, provided the government encourages investment in new technologies,” said Kishor Jhalaria, president – business planning & project development, Reliance Industries Ltd.
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Centre plans to set up reverse SEZ for chemical sector in Iran

MUMBAI: The Centre is planning to set up Reverse Special Economic Zones (SEZ) in various nations starting from Iranin order to meet the increasing demand of speciality chemicals in the country, a senior government official said here today.

 

The domestic process and chemical industry needs to explore joint ventures and acquire assets in the oil & gas rich regions abroad for securing alternative feedstock and energy sources, the official said.

“In 2013, India was the second largest producer of chemicals in Asia after China. Joint Ventures and alliances abroad for technical and R&D support and global reach can help our industry grow in a big way,” Union Secretary for Chemicals and Fertilisers, Surjit Chaudhary said while inaugurating a four-day chemical fair CHEMTECH World Expo 2015 here.

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