Organic Chemical Segment

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The Organic Chemical Segment inIndia is an important intermediate industry. It contributes significantly to the total growth of theIndian Chemical sector.

Organic chemicals are the chemical compounds constituting mainly of Carbon, Oxygen, Hydrogen. These chemical compounds are also known as Hydrocarbons. It consists of an wide array of chemicals such as Formaldehyde, Phenol, Acetic acid, Acetic Anhydride, Nitrobenzene, Methanol, Acetone, Trichloroethane, Aniline, Malefic anhydride, Pentaerithitol, Citric acid, etc.

The organic chemical manufacturing units are mostly concentrated on the western and the south western fringes ofIndia. Presently the organic chemical market is around US$ 700 million.

Market Industry of the Organic Chemical Segment:

  • It is an intermediate industry so the demand depends solely on the demand of the end products.
  • Reduction of growth due to the build up of excess capacity
  • The Organic Chemical Industry is reigned by the big private organizations
  • The national prices are heavily dependent on the imports as the global prices are unstable
  • The price is also demand and supply oriented

Key Factors of Success to the Organic Chemical Segment:

  • Usage of proper technology
  • Effective control on cost in necessary
  • To ensure low cost of production, the sources from where the feedstock is obtained and the prices are important
  • Restructuring of operations is needed
  • The export market should be focused on for enhanced profitability
  • The proper procurement of the basic materials for manufacturing
  • There is stiff competition from the unorganized manufacturers

Future of the Organic Chemical Segment:

  • The organic chemical industry has to focus on the reconstruction of operations
  • Reduction in costs would be one of the primary focuses with the change in technology
  • There would be huge development in the infrastructural facilities of the organic chemical sector
  • The demand for the organic chemicals are dependent on the demand of the end use products, so it would depend on the growth rate of the end use products industry like fertilizers, pharmaceuticals, oil, textile, etc
  • The international price factor would affect the production and the national prices and the supply and would highly depend on this

Last Updated on 13 December 2011