Tata Strategic report released in ‘India Chem Gujarat 2017’

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New Delhi: Tata Strategic Management Group, today presented the report on Indian chemicals industry, as knowledge and strategy partner for the FICCI organised IndianChem Gujarat Conclave 2017. The report titled “India Chem Gujarat 2017” was released by Shri. Ananth Kumar, Union Minister of Chemicals & Fertilizers, Government of India, and Shri. Vijay Rupani Chief Minister of Gujarat. The report is a source of knowledge and information on the current scenario of the chemical industry highlighting the importance of chemicals in everyday life by taking the reader through the key sub-segments such as petrochemicals, agrochemicals, specialty chemicals and fertilizers.
Today, at a domestic industry size of USD 155 billion, it accounts for only 3.4% of the global chemical market. It is highly diversified with more than 80,000 chemicals and is directly/ indirectly related to almost all the sectors making it very crucial for the economic development of the country. The report outlines the demand scenario till 2025 and also the key growth drivers.

The report also highlights critical issues the chemical industry is facing today like, availability of key feedstock, infrastructure status, scale of operations, access to technology, energy security and ease of doing business. These issues have hampered industry growth and it needs Government interventions to achieve its true potential. Adoptions of alternate feedstock, increasing investment in R&D and achieving scale through collaboration are some of the key levers industry can act upon to overcome these challenges.

The special feature on Gujarat illustrates the advantages it offers. The chemical industry is today the largest and fastest growing component of Gujarat’s manufacturing sector. Gujarat as a state contributes a major share of the country’s chemicals output: 63% of petrochemicals, 53% of chemicals and 45% of pharmaceuticals. The report by Tata Strategic Management Group also highlights the advantages that Gujarat as a state offers with its business friendly policies & robust infrastructure which is helping the chemical industry to contribute to the Gujarat growth story. However, there is a need for the state to compare itself with international examples for an integrated development which will be a key to make Gujarat as a chemical hub.

This report includes a special section on ‘Making India the Investment Magnet for Chemicals: Strategic Imperatives’. This section states that improving on EODB, integration of chemical & petrochemical sector, identifying strategic products of our interest, defining consumer standards and building the right non-tariff barriers will be crucial for India to realize its aspiration of being the 4th largest chemical manufacturer in the world.

Commenting on the report, Mr. Modan Saha, Chief Executive Officer, Tata Strategic Management Group said, “Indian chemical industry is on the cusp of a growth trajectory. This industry should be looked at as a part of Indian economic growth story. India’s national manufacturing policy aims to enhance the share of manufacturing in the country’s GDP to 25%, and create 100 million jobs by 2022, and the chemical industry would have a very important role in this”.

Mr. Manish Panchal, Sr. Practice Head – Chemical & SCM, Tata Strategic Management Group, said , “With 62% of petrochemical and 53% of chemicals production share, Gujarat is aptly referred to as ‘a chemicals and petrochemical capital’ of India. With eastern countries gaining more prominence in a global chemical market, role of this state becomes crucial in the coming future. Feedstock security, strong R&D, constant product innovation to cater to changing customer needs will go a long way in consolidating India’s position in a global chemical market”.

Mr. Charu Kapoor , Principal – Chemicals Practice added “
The Indian chemical industry is an integral component of the Indian economy and has the potential to grow to a size of USD 346 billion by FY25 through a series of concerted efforts. This aspirational growth scenario places a greater emphasis on growth in the specialty chemical segments. Consumer needs and preferences are changing rapidly for better products. Adoption and penetration of these products can be increased rapidly by creating awareness of product standards and enforcing the same if required. Not to forget Sustainability and safety at the same time. ”