Spurring Investments in PCPIRs and an Integrated Production of Petroleum, Chemicals and Petrochemicals to Drive Organic Chemicals Market Growth in India: Ken Research

September 2015  

Organic Chemical Industry in India will continue to grow at a considerable pace in the next few years with addition of more PCPIRs in different regions in the country, thus easing the access to co-sitting, networking and greater efficiency by deploying common infrastructural facilities. The industry is predicted to grow at a CAGR of 8.4% in terms of production volume during FY’2014-FY’2019 and is expected to cross 2,418.2 TMT by FY’2019. The future of the industry is predicted to be fully inter-connected as methanol and phenol are the major constituents of the end user products. Spurring investments in new PCPIR, increasing working class population, development of infrastructural facilities and regulatory push by the government of will drive the growth of the industry in the future. The introduction of new business models by chemical companies aiming to explore the possibility of innovative technologies which are simple to use, cost-effective and power-independent is expected to drive the industry growth in the future.

Furthermore, upcoming innovation such as introduction of new applications of organic chemicals would lead to a rise of focus on cleaner environment through the usage of alternative feedstock for the substitution of coal and petroleum. Quality evaluation laboratories and usage of alternative feedstock such as biomass and petrocoke are expected to gain popularity in the future, as government is focusing on spurring the export volume. The numbers of mergers and acquisitions in private sector and FDI have also increased during the review period. According to an industry veteran, “the government has a major share in organic industry of India. Continuous support of state governments in emphasizing modernization of technology and increasing investments in PCPIRs and private initiatives to produce organic chemicals will further ensure efficiency and quality in the sector.”

“Quality evaluation check and improved techniques are essential to take organic chemical industry to the next level of growth in the country. Such kind of solutions will also help to tackle issues such as high priced feedstock, degraded plants, insufficient capacity additions, infrastructure and other aspects that the sector countenances. Due to inadequate availability of feedstock and increasing demand from end user industries, major organic chemical companies are still dependent on imports. The challenge will be to bridge the demand-supply gap in the future”, is according to the Research Analyst, Ken Research.

 

 

The report titled "India Organic Chemical Industry Outlook to 2019" provides detailed overview on Methanol and Phenol Markets. This report helps the readers to identify ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, organic chemical vendors and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.