Setting a 2040 perspective; Indian Chemical Industry Marching to USD 1 Tn by 2040
Mumbai, 1st March 2023: Indian Chemical Council (ICC), the apex national body representing the Indian Chemical and Petrochemical Industry, released a whitepaper ‘India: The next chemicals manufacturing hub,’ at the Sixteenth Annual India Chemical Industry Outlook Conference and Exhibition held on March 1st and 2nd at Taj Lands End, Bandra, Mumbai, with McKinsey & Company as the knowledge partner for the event.
ICC released the whitepaper, at a crucial juncture when India has been a global outperformer in demand growth and shareholder wealth creation in the chemical sector over the last decade.
The whitepaper presented the 2040 outlook for the Indian chemical industry and benchmarks for India’s manufacturing competitiveness vs other key global chemical clusters. The whitepaper brought to light significant findings in potential challenges across various segments and the effective ways to tackle them. The report dwelled at length on the importance of global and local companies reflecting upon the resource allocation mix, the business model, and the overall business strategy. It also laid out winning opportunities for the Indian chemical industry to become the next chemicals manufacturing hub.
“Currently valued at around USD 220 billion, the Indian chemical industry is expected to touch USD 300 Billion by 2025 and reach the USD 1 Trillion mark by 2040, fuelled by growth in per capita income and consumption levels. It is predicted that demand for speciality chemical segment is expected to grow at a pace of over 15% CAGR. With 100% FDI allowed through the automatic route and tremendous headroom for growth, the Indian chemical sector is well positioned for receiving large FDIs from global MNCs, said Shri. Arun Baroka I.A.S., Secretary – Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers.
On the sidelines of the conference, a grand exhibition, has been organized to showcase the products and innovations in the chemical sector across various verticals. The Expo is a great opportunity for the companies to make new business connections, reinforce old ones, demonstrate technical capabilities, and learn what their peers are doing.
Meanwhile, the ICC has entered into an MoU with the Institute of Chemical Technology (ICT) in order to establish a “Center of Excellence.” The two institutions have agreed to cooperate and work together on multiple levels to identify key R&D areas for immediate and future requirements with a focus on MSMEs
Dr Srikar Reddy I.F.S., Joint Secretary Commerce while delivering the key note address highlighted on the recent CEPA with UAE which will boost the Indian Chemical Trade. The
CEPA is expected to increase the bilateral trade in goods to USD 100 billion within five
years of the signing and increase trade in services to USD 15 billion.
Mr Nikhil Meswani, Executive Director, Reliance Industries, while delivering the Key Note address stressed on Sustainability which is no more a buzzword but an imperative. He outlined the importance of the responsible growth of Chemical industry with specific focus on how the “World of Oil to Chemicals should evolve in a sustainable manner”.
Mr. Erik Fyrwald, Global CEO of Syngenta, world’s largest Agro Chemical Company, gave insights on how MNCs are shaping their Global Play and Mr Chris Musso of McKinsey & Co., USA spoke on the “Global Chemicals scenario” and how it is inter-linked with an emerging economy like India, towards achieving the USD 1 Trillion mark.
Key features of the two-day conference included the “Model Factory in A Box” a tabletop factory demonstration presented by McKinsey and Company, showcasing its unique offerings in capability building, and an exclusive chat with Mr Nadir Godrej, CMD of Godrej Industries Ltd and Mr R Mukundan, MD & CEO of Tata Chemicals on Thinking Back and Looking Ahead.
Earlier, Mr Bimal Goculdas, President ICC and MD & CEO of DMCC Specialty Chemicals Ltd while welcoming the participants, said that the current edition of the conference offered a unique opportunity for everyone, whether it’s a CEO, business owner, a start-up, an entrepreneur, or simply interested in the latest trends and developments. The event provided a platform for networking, learning, and exploring new ideas and innovations.
He said that more than 100 CEOs, 80 CXO level speakers, 500 delegates from various parts of the world are attending the event.
Mr Rajen Mariwala Vice President, ICC and MD, Eternis Fine Chemicals proposed the vote of thanks.