GPTIE PPT- Chemical Sector
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Transcript of GPTIE PPT- Chemical Sector
1
Overview
Chemical Industry is an important constituent of the Indian economy having approx. US $ 28 billion turnover which is approx. 7% of India’s GDP.
In terms of volume, it is 12th largest in the world, and 3rd largest in Asia.
Within India, it constitutes about 15% of manufacturing capacity and20% of the Excise revenue to the Government of India.
Chemical industry has weightage of about 13% in the index ofindustrial production.
The global chemical industry is valued at about US $ 1.7 trillion. Ofwhich, India’s chemical sector accounts for just 2%
Chemical Industry is an important constituent of the Indian economy having approx. US $ 28 billion turnover which is approx. 7% of India’s GDP.
In terms of volume, it is 12th largest in the world, and 3rd largest in Asia.
Within India, it constitutes about 15% of manufacturing capacity and20% of the Excise revenue to the Government of India.
Chemical industry has weightage of about 13% in the index ofindustrial production.
The global chemical industry is valued at about US $ 1.7 trillion. Ofwhich, India’s chemical sector accounts for just 2%
Source: Dept. of chemical and petrochemical
Overview contd…
India’s present share in Global Trade is 0.6% i.e. USD 45 Billion & it has been
expected to increase the same to 1% i.e. USD 80 Billion by 2011.
Chemical & Pharmaceutical Industry is the most important Foreign Exchange
earner with major value additions through out the value chain. The value is
added using Knowledge, energy and Capital.
The Indian Chemical sector accounts for 13-14% of total exports and 8-9% of
total imports of the country.
India’s present share in Global Trade is 0.6% i.e. USD 45 Billion & it has been
expected to increase the same to 1% i.e. USD 80 Billion by 2011.
Chemical & Pharmaceutical Industry is the most important Foreign Exchange
earner with major value additions through out the value chain. The value is
added using Knowledge, energy and Capital.
The Indian Chemical sector accounts for 13-14% of total exports and 8-9% of
total imports of the country.
3Source: Dept. of chemical and petrochemical
Major Chemicals
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Production Centers
United Phosphorous Ltd, Mumbai P.I Industries, JaipurExcel India, Mumbai Colour Chem. Ltd., Mumbai Sudarshan Chemical Industries, Pune Colourtex, Ahmedabad Jubilant Organosys Ltd., New Delhi Herdilia-Schentady Ltd. Mumbai National Organics Chemicals Ltd., Mumbai Gujarat Heavy Chemicals Ltd., Ahmedabad. India Glycols Ltd., New Delhi Gujarat Alkalies and Chemicals Ltd., Baroda ICI Calcutta
United Phosphorous Ltd, Mumbai P.I Industries, JaipurExcel India, Mumbai Colour Chem. Ltd., Mumbai Sudarshan Chemical Industries, Pune Colourtex, Ahmedabad Jubilant Organosys Ltd., New Delhi Herdilia-Schentady Ltd. Mumbai National Organics Chemicals Ltd., Mumbai Gujarat Heavy Chemicals Ltd., Ahmedabad. India Glycols Ltd., New Delhi Gujarat Alkalies and Chemicals Ltd., Baroda ICI Calcutta
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STATE WISE SHARE IN PRODUCTION OFSELECTED MAJOR CHEMICALS (2006-07)
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6Source: Ministry of Commerce and Industry
Import of Selected Chemicals
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7Source - http://chemicals.nic.in/chem1.htm
Export of Selected Chemicals
((
8Source - http://chemicals.nic.in/chem1.htm
Domestic Industry
Indian Chemical Industry• 12th largest in the world and 3rd largest in Asia• a strong player in the generic pharmaceutical market.• 2nd largest producer of agrochemicals in Asia.
•Indian pharmaceutical industry ranks 4th in volume & 13th in terms of value in the world.
•Indian Chemical Industry (including pharmaceutical) = $40 bn in 2006 •Market is expected to grow to $75.8 bn - 13.6% CAGR by 2011
Indian Chemical Industry• 12th largest in the world and 3rd largest in Asia• a strong player in the generic pharmaceutical market.• 2nd largest producer of agrochemicals in Asia.
•Indian pharmaceutical industry ranks 4th in volume & 13th in terms of value in the world.
•Indian Chemical Industry (including pharmaceutical) = $40 bn in 2006 •Market is expected to grow to $75.8 bn - 13.6% CAGR by 2011
9Source: Datamonitor, Chemicals in India, October 2007
Domestic Industry
Industry divided into 3 segments:1. Basic chemicals 2. Specialty chemicals and3. Knowledge chemicals.
Industry divided into 3 segments:1. Basic chemicals 2. Specialty chemicals and3. Knowledge chemicals.
10Source: KPMG Report 2008
Industry classification
((
11Source: KPMG Report 2008
Trends in Exports
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12Data Source: DGCIS, Kolkata
Major export destinations
• UAE
• United States
• United kingdom
• China
• UAE
• United States
• United kingdom
• China
13Source: Commerce.nic.in/ftpa/cnt.asp
Major Exporters
•Indian Petrochemical Corporation Limited (IPCL)
•Gas Authority of India Limited (GAIL)
•Haldia Petrochemicals Limited
•Tata Chemicals
•Asian Paints
•Ciba
•Rallis
•Hindustan Organic Chemicals (HOCL)
•Reliance Industries Limited (RIL)
•Indian Petrochemical Corporation Limited (IPCL)
•Gas Authority of India Limited (GAIL)
•Haldia Petrochemicals Limited
•Tata Chemicals
•Asian Paints
•Ciba
•Rallis
•Hindustan Organic Chemicals (HOCL)
•Reliance Industries Limited (RIL)14
Source: commerce.nic.in/ftpa/cnt.asp
Global Chemical IndustryGlobal Chemical Industry = $2.4 trillion
• Europe 36%• China 10%• India 2%• NAFTA 25%
Global Chemical Industry = $2.4 trillion
• Europe 36%• China 10%• India 2%• NAFTA 25%
15Source: “CEFIC Facts & Figures Report,” September 2007
Global Competitors((
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FTP Provisions• 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.
• Export of Special Chemicals, Organisms, Materials, Equipment and Technologies
shall be subject to fulfillment of the conditions indicated in ITC(HS).
• Exports and Imports shall be free, except where regulated by FTP or any other
law in force.
• The procedure for facilitating foreign direct investment has been simplified. Most
of the chemical items fall under the RBI automatic approval route for FDI/NRI
investment up to 100 per cent.
• 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.
• Export of Special Chemicals, Organisms, Materials, Equipment and Technologies
shall be subject to fulfillment of the conditions indicated in ITC(HS).
• Exports and Imports shall be free, except where regulated by FTP or any other
law in force.
• The procedure for facilitating foreign direct investment has been simplified. Most
of the chemical items fall under the RBI automatic approval route for FDI/NRI
investment up to 100 per cent.
17Source: commerce.nic.in/trade/national_ftpp.asp?id=3&trade=n
Tariff on chemicals
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Recommendations• World is becoming increasingly competitive & only the best & the most
competitive will survive. Incentives should be made available to the industry
where Larger MNCs start to have a direct and noticeable effect.
• Even though India enjoys an abundant supply of basic raw materials, it will
have to build upon technical services and marketing capabilities to face global
competition and increase its share of exports.
• As the Indian economy was a protected economy till the early nineties, very
little large-scale R&D was undertaken by the Chemical industry to create
intellectual property. The Industry would, therefore, have to make large
investments in R&D to successfully counter competition from the
international chemicals industry.
• World is becoming increasingly competitive & only the best & the most
competitive will survive. Incentives should be made available to the industry
where Larger MNCs start to have a direct and noticeable effect.
• Even though India enjoys an abundant supply of basic raw materials, it will
have to build upon technical services and marketing capabilities to face global
competition and increase its share of exports.
• As the Indian economy was a protected economy till the early nineties, very
little large-scale R&D was undertaken by the Chemical industry to create
intellectual property. The Industry would, therefore, have to make large
investments in R&D to successfully counter competition from the
international chemicals industry. 19
Quality Standards
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Future Prospects
21Source: KPMG Report 2008
References
•Department of chemicals and petrochemicals, Chem Report 2008•Overview of the chemical industry, KPMG report 2008•Organic chemicals annual review, Crisil Research, December 2008•Datamonitor, Chemicals in India, October 2007•WTO international trade statistics, 2007
Websiteswww.chemindia.orghttp://commerce.nic.in/trade/national_ftpp.asp?id=3&trade=nhttp://en.wikipedia.org/wiki/Chemical_industryexplore.oneindia.in/detail/2/chemicals-nic-in.html
•Department of chemicals and petrochemicals, Chem Report 2008•Overview of the chemical industry, KPMG report 2008•Organic chemicals annual review, Crisil Research, December 2008•Datamonitor, Chemicals in India, October 2007•WTO international trade statistics, 2007
Websiteswww.chemindia.orghttp://commerce.nic.in/trade/national_ftpp.asp?id=3&trade=nhttp://en.wikipedia.org/wiki/Chemical_industryexplore.oneindia.in/detail/2/chemicals-nic-in.html
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