India Chemicals Industry Report - 2015

India Chemicals Industry Report - 2015

This report profiles India’s chemicals industry, discussing market trends through 2014 and outlook for 2015 and beyond. The report also highlights leading players in the sector including Tata Chemicals Ltd, UPL Ltd and Pidilite Industries Ltd.

India’s chemical industry has played an important role in the development of the economy. The industry includes basic chemicals and chemical products, petrochemicals, agrochemicals, dyes, paints and varnishes, synthetic fibers and industrial gases. Chemicals and chemical products industry is among the 22 industry groups in the manufacturing sector tracked by the index of industrial production.

Domestic industrial production saw a recovery in the fiscal year ended March 2015. However, contrary to the general industrial trend, the chemicals and chemical products sector saw a slowdown due to the decline in global and domestic demand. Lower production combined with lower price growth shrunk the overall growth of the sector.

Moreover, domestic production was insufficient to meet the demand; as a result a large proportion of the requirement was met through imports. This has disturbed the sector’s trade balance as shown by the rapid increase in trade deficit during the last five years. The sector is also adding to the trade deficit of the economy, despite having a substantial export share.

Going forward, the sector is expected to continue on its growth track, backed by a growing construction sector, a large textile sector, and a growing need for agrochemicals. The launch of “Make in India” campaign and other such government initiatives will further add to the growth of this sector.

Key Points:

Chemicals and chemical products are one of the major industry groups tracked by the index of industrial production (IIP). It constitutes about 10.1% of the industrial output represented by IIP and grew at a CAGR of 2.1% during fiscal years 2007-12.

In the period 2009-14, chemical exports saw a double-digit annual growth rate of 18%. As of FY14, organic chemicals accounted for 41% of the Indian chemical exports, followed by plastic products with a contribution of 19%.

Chemical imports accounted for 9% of the country’s total imports as of FY14 as domestic production was insufficient to meet the huge demand.

In FY15, the chemical manufacturing index declined by 0.1% y/y while the general index grew by 2.8% y/y. Thus, the sector underperformed compared to the general industrial production.

1. Industry Profile
1.1 Sector overview
1.2 Sector size
1.3 Competitive landscape
1.4 Environmental scanning

2. Market Trends and Outlook
2.1 Key economic indicators-India
2.2 Production trends
2.2.1 Index of industrial production
2.2.2 Production quantity
2.2.3 Installed production capacity
2.3 Consumption trends
2.4 Chemical exports
2.5 Chemical imports
2.6 Price trends
2.7 Market outlook

3. Leading Players and Comparative Matrix
3.1 Leading players
3.1.1 Tata Chemicals Limited (TCL)
3.1.2 UPL Limited (UPL)
3.1.3 Pidilite Industries Limited (PIL)
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables & Charts
Table 1: Annual production of major chemicals
Table 2: Annual production of major petrochemicals
Table 3: Key financial ratios of leading players

Chart 1: Weightage of various industries in index of industrial production
Chart 2: Breakup of chemical production output by states
Chart 3: Breakup of number of chemical factories by states
Chart 4: Value of output from chemicals and chemical products
Chart 5: Cumulative FDI received in the chemical sector
Chart 6: Current account deficit and fiscal deficit
Chart 7: Quarterly GDP growth rate-India
Chart 8: Average Monthly USD to INR Exchange Rate
Chart 9: Monthly Inflation
Chart 10: Repo rate
Chart 11: Index of industrial production
Chart 12: Y/Y change in index of industrial production
Chart 13: Production of major chemicals
Chart 14: Production of major petrochemicals
Chart 15: Installed production capacity of major chemicals and petrochemicals
Chart 16: Capacity utilization rates of major chemical segments
Chart 17: Consumption to production ratio of major chemicals
Chart 18: Consumption to production ratio in major petrochemicals
Chart 19: Chemical exports from India
Chart 20: Breakup of Indian chemical exports
Chart 21: Chemical imports from India
Chart 22: Breakup of Indian chemical imports
Chart 23: Monthly WPI inflation in chemicals and chemical products
Chart 23: Trade deficit in the chemical sector of India
Chart 24: Average annual inflation across different segments
Chart 25: Trade deficit in the chemical sector of India
Chart 26: Segment wise revenue breakup of TCL
Chart 27: Total revenues of TCL
Chart 28: Profit margins of TCL
Chart 29: Segment wise revenue breakup of UPL
Chart 30: Total revenues of UPL
Chart 31: Profit margin of UPL
Chart 32: Segment wise revenue breakup of PIL
Chart 33: Total revenues of PIL
Chart 34: Profit margin of PIL

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