A Thread on basics about the #Chemical #industry
According to American Chemistry Council, more than 96% of all manufactured goods are directly touched by the chemicals industry.
Do Hit the Retweet and help us spread knowledge. (1/n)
According to American Chemistry Council, more than 96% of all manufactured goods are directly touched by the chemicals industry.
Do Hit the Retweet and help us spread knowledge. (1/n)
Global Chemical Industry: -
The global chemicals market is valued at around USD 4,738 Bn; China accounts for the major market share (37%), followed by the European Union (17%) and the United States (14%). India’s share stands at ~3.5%. (2/n)
Source:- Laxmi Organics Annual Report
The global chemicals market is valued at around USD 4,738 Bn; China accounts for the major market share (37%), followed by the European Union (17%) and the United States (14%). India’s share stands at ~3.5%. (2/n)
Source:- Laxmi Organics Annual Report
However, as the chemicals markets in Western Europe, North America and Japan are relatively mature, they are expected to record slow growth rates of around 3-4%, while the Asia Pacific (APAC) region should grow at a faster rate of 7-8% during the forecast period (2019-24F). (3/n)
Indian Chemical Industry
The market size of Indian Chemicals & Petrochemicals sector is around $178 bn; expected to grow to $300 bn by2025
The production of Total Major Chemicals in 2020-21 (upto Sep-20) was 12,502 thousand MT
CAGR in production(FY 15-16 to 19-20)is 5.74%
(4/n)
The market size of Indian Chemicals & Petrochemicals sector is around $178 bn; expected to grow to $300 bn by2025
The production of Total Major Chemicals in 2020-21 (upto Sep-20) was 12,502 thousand MT
CAGR in production(FY 15-16 to 19-20)is 5.74%
(4/n)
Process: -
Chemical Industry converts Raw materials such as Oil, Natural Gas, Air, Water and minerals into huge range of different products.
Inputs are called Feedstocks and is generally created by refining and processing of raw oil n gas.
(5/n)
Chemical Industry converts Raw materials such as Oil, Natural Gas, Air, Water and minerals into huge range of different products.
Inputs are called Feedstocks and is generally created by refining and processing of raw oil n gas.
(5/n)
Large chemical companies are usually structured with multiple segments as follows and : -
1.Commodity Chemicals
2.Speciality Chemicals
3.Consumer Chemicals
4.Agro Chemicals
(6/n)
1.Commodity Chemicals
2.Speciality Chemicals
3.Consumer Chemicals
4.Agro Chemicals
(6/n)
1. Commodity chemicals: - Also known as Bulk/Base chemicals. These are mainly sold to other companies as feedstocks who further process them into their own finished products.
Low Profit margins
Since all the products are same, focus is only on producing in high volumes... (7/n)
Low Profit margins
Since all the products are same, focus is only on producing in high volumes... (7/n)
.... efficiency, and cost savings to remain competitive.
This segment includes basic organic (methanol, acetic acid, phenol etc.) and inorganic chemicals (also known as alkali chemicals, caustic soda, chlorine, and soda ash). (8/n)
This segment includes basic organic (methanol, acetic acid, phenol etc.) and inorganic chemicals (also known as alkali chemicals, caustic soda, chlorine, and soda ash). (8/n)
Major Categories in Commodity chemicals are: -
a. Petrochemicals
b. Base Inorganics
c. Polymers
a. Petrochemicals : - A direct product of the refining of oil & gas and building blocks for different derivative chemicals
Demand is expected to grow@ 7.5% CAGR from FY 2019-23 (8/n)
a. Petrochemicals
b. Base Inorganics
c. Polymers
a. Petrochemicals : - A direct product of the refining of oil & gas and building blocks for different derivative chemicals
Demand is expected to grow@ 7.5% CAGR from FY 2019-23 (8/n)
b. Base Inorganics: - To produce solvents, rubber, oils, and fertilisers.
c. Polymers: - to create a wide range of plastics (From Food packaging to stretchy clothing fibres)
The polymer demand is expected to grow @ 8% CAGR from FY 2019-23.
(9/n)
c. Polymers: - to create a wide range of plastics (From Food packaging to stretchy clothing fibres)
The polymer demand is expected to grow @ 8% CAGR from FY 2019-23.
(9/n)
2. Speciality chemicals - These chemicals generally use commodity chemicals as feedstocks
Produced in lower volumes
For specific uses
Non-standard products
Involves complex chemical reactions due to which they command higher prices
Account for > 50% of total exports
(10/n)
Produced in lower volumes
For specific uses
Non-standard products
Involves complex chemical reactions due to which they command higher prices
Account for > 50% of total exports
(10/n)
3. Consumer Chemicals: - Sold to consumer goods manufacturers & used in products like soaps, perfumes, detergents, & few plastics
4. Agro Chemicals: - Includes fertilizers, liming & acidifying agents, soil conditioners, pesticides, & chemicals used in raising of livestock (11/n)
4. Agro Chemicals: - Includes fertilizers, liming & acidifying agents, soil conditioners, pesticides, & chemicals used in raising of livestock (11/n)
Major customers of chemicals industry :-
•Construction
•Rubber & Plastics
•Automotive
•Pharmaceuticals
•Electronics
•Agricultural
•Metals
•Mining
And many more.
(12/n)
•Construction
•Rubber & Plastics
•Automotive
•Pharmaceuticals
•Electronics
•Agricultural
•Metals
•Mining
And many more.
(12/n)
Ending the thread with Few Facts about India’s Chemical Industry
•3rd largest consumer of polymers in the world
•4th largest producer of Agrochemicals in the world
•6th largest producer of chemicals in the world
(13/13)
•3rd largest consumer of polymers in the world
•4th largest producer of Agrochemicals in the world
•6th largest producer of chemicals in the world
(13/13)
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