Page 132 - CW E-Magazine (13-5-2025)

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POTENTIAL FOR GROWTH

Indian chemicals industry can grow to $2-trillion by 2047

with right enablers: ASSOCHAM-PwC report

The Indian chemical industry, the at $5.4-bn in FY 2022-23. The dyes stered cost competitiveness. How-
sixth-largest chemical producer glob- and pigments segment also excels, con- ever, recent US reciprocal tariffs of
ally and third largest in Asia, is poised tributing close to 18% of global dye- 26% on Indian exports highlight the
to grow at a CAGR of 11-12% till 2027, stuff exports, with FY 2023-24 exports need for agile trade policy reforms
as per a knowledge paper released by valued at Rs. 5,831-crore for pigment to maintain global competitiveness.
ASSOCHAM and PwC India at the emulsions and Rs. 4,634-crore for dyes.  Building performance excellence:

‘India Specialty Chemicals Conclave through digital transformation is a
2025’ held recently in New Delhi. Despite robust growth, the indus- pivotal enabler for Indian chemical
try faces challenges, including high industry. Over 52% of supply chain
The report highlighted the sector’s import dependency, with raw material leaders view digitalisation as essen-
dynamism and potential to establish as costs comprising 40 to 60% of total tial, with technologies like digital
a sustainable global hub, with the spe- prices due to reliance on imported petro- twins and AI-driven procurement
ciality chemicals segment, constituting chemical intermediates like ethylene optimising operations. While a signi-
22% of the $220-bn chemical and petro- and propylene. Supply chain disrup- fi cant percentage of Indian CEOs
chemical market in 2023, becoming a tions, price volatility, and a talent short- are optimistic about Generative AI’s
cornerstone of economic progress. age pose hurdles. To position India as impact on business profi ts, trust in
a sustainable global chemicals hub, the the technology remains a concern.
As per the report, India’s share in report emphasises three key enablers:  Collaboration for innovation and
the global speciality chemicals market  An adaptive international trade skill development: is the next criti-

could rise from 3% currently to 4% by strategy: The Indian chemical in- cal enabler for sustainable, long-
2027. With speciality chemicals ac- dustry needs to leverage the 13 free term growth, as Indian chemical
counting for more than 50% of total trade agreements (FTAs) signed in industry needs to come together
chemical exports from India, Indian the last fi ve years to enhance market to address emerging skill gap and
speciality chemicals companies are access and mitigate trade risks. And foster innovation for both new
expanding their capacities to cater to also explore rerouting of chemicals product development and process
the rising demand from both domestic trade fl ows through new agreements improvements to scale-up. Institu-
and overseas markets. with EU and US which are on the tionalising industry-academia part-
anvil. The Remission of Duties and nerships, supported by non-profi t
Among the speciality chemicals Taxes on Exported Products (RoD- regional technology transfer organi-
sub-segments, India has emerged as the TEP) scheme and Special Economic sations, would be key to facilitating
second-largest exporter for agrochemi- Zones (SEZs) offering tax exemp- R&D and technology commercia-
cals in the world, with exports valued tions on raw materials have bol- lisation.

Heranba Industries arm begins commercial production

at its Saykha unit in Gujarat

Mumbai-based agrochemicals fi rm, the phase-I unit is Heranba, said, “This com-
Heranba Industries, which manufac- about 6,000-mtpa mercial production will gene-
turers synthetic pyrethroids and its and Heranba expects rate additional revenue for our
intermediates, has announced that its the unit to generate company. We are dedicated to
wholly-owned subsidiary, Heranba annual revenue of improve productivity in order
Organics, has started commercial pro- Rs. 280-300 crore. to achieve signifi cant margin expan-
duction at the phase-1 of its facility in sion, and we continue to view FY26 as
the Saykha Industrial Estate, in Bharuch, Commenting on this development, a crucial acceleration point in Heranba’s
Gujarat. The production capacity of Mr. R. K. Shetty, Managing Director, growth trajectory.”

132 Chemical Weekly May 13, 2025

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