Chemicals mkt to grow 9% through FY19 to touch $214-b:Report

The domestic chemicals market is on course to nearly double and touch USD 214 billion by the turn of FY19 from USD 139 billion in FY14.
"The domestic chemicals industry has the potential to grow at 9 per cent annually to reach USD 214 billion by FY19 from USD 139 billion in Fy14," says a report by the Tata Strategic Management Group, which is the largest homegrown management consultancy,and the industry lobby Ficci.
The report further notes that this high growth can be attained only if key imperatives like securing feedstock, right product mix and right partnerships for capital and technology, are secured.

The domestic chemicals market, consisting of petrochemicals, base chemicals, speciality chemicals, agrochemicals and fertilizers, constitutes around 3.3 per cent of the global market.
The domestic chemicals sector is highly diversified with over 80,000 chemicals and accounts for 15 per cent of the country's industrial output.
Highlighting the critical issues plaguing the industry, the report underlined lack of availability of key feedstock, infrastructure status and access to technology, coupled with poor operational scale, energy security and ease of doing business.
Gujarat is the largest manufacturer chemicals in the country with its contribution being 62 per cent of petrochemicals, 51 per cent of chemicals and 35 per cent of pharmaceuticals.

This is the largest and the fastest growing component of the state's manufacturing, it notes.