Inorganic chemical segment

Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating[3/5]Total Votes [ 1 ]  
Rate this page:

The inorganic chemical segment of the chemical industry in India is a ` 9,600 crore (US $ 2.2 billion) industry. A wide array of products falls under this segment.

Some of the major products of the inorganic chemical segment are sulphuric acid, chlorine calcium carbonate, soda ash, hydrogen peroxide, caustic soda, lead phosphorus, carbon black, titanium dioxide, aluminum fluoride, and potassium chlorate. These inorganic chemicals are mainly used in detergents, soaps, paper, fertilizers, alkalis, and glass manufacturing.

The inorganic chemical segment of the chemical industry in India is fragmented. It varies from large public and private organizations to small-scale industrial units. Unlike the era of the centralized economy, in the open market economy the duties have been lowered which has facilitated the growth of the inorganic chemical segment, but it needs to be even more organized in its activities and this is where governmental rules and regulations come into the picture.

The main contributors in the inorganic chemical segment are made by the big companies. In the post-independence era, the inorganic chemical segment of the chemical industry experienced rapid growth of around 9% on a yearly basis.

Market characteristics of the inorganic chemical segment:

  • These chemicals are important commodities. Price and availability are the major factors of determining demand
  • Big companies make up the lion's share of the industry
  • Prices depend heavily on the demand and the supply of the materials in the national and international markets

Key factors of success for the inorganic chemical segment:

  • Utilizing the right options of technology and cost control
  • Logistics optimization, inventory management, focusing on by products, and production scheduling, would add to the business
  • The value addition of the industry is low and some of the segments are energy intensive
  • There is an excess of production both, in the national and the international market which is slowing the rate of growth

Future of the inorganic chemical segment:

  • A growth rate of 6-7% is expected in the forthcoming years
  • The manufacturers in organized sector would still dominate the segment
  • The companies would concentrate more on upgradation of technology and lowering of costs to improve the profit making ability
  • Inorganic chemicals are mostly used for the manufacturing of the end-use product so the demand would be directly proportional to the demand of the end-use products

Last Updated on 13 December 2011