Flow Of Presentation
• Overview of International chemical Industry
• Introduction to chemical Industry in India
• Contribution to GDP
• Major Sectors in Chemical industry
• Chemical Industry structure in India
• Intro of Tata Chemicals
• Analysis Of Tata Chemicals
• Conclusion
Introduction to Chemical Industry in
India
• Chemical Industry in India is fragmented and
dispersed - multi product and multi faceted.
• Chemicals are sold directly to large customers
and through distribution channels.
• One of the fastest growing sector in Indian
economy.
• Indian Chemical Industry is 12th largest in
world and 3rd largest in Asia
Chemical Industry Scenario in India
• Chemical Industry Contributes 13% to expotrs
in India
• 13% of the total industrial output
• 10 % - 12 % growth per annum
• 2% of global chemical industry
• India – 2nd largest producer of agrochemicals
in Asia
Contribution to GDP
• Indian Chemical Sector contributes 7% to GDP
7%
87%
Contribution to GDP
Chemical
Others
Domestic Industry
Industry divided into 3 segments:
1. Basic chemicals
2. Specialty chemicals and
3. Knowledge chemicals.
Speciality
chemicals
26%
Basic
chemicals
57%
Knowledge
chemicals
17%
Import Of Chemicals
0
100
200
300
400
500
600
700
800
203
53
477
1 9
711
131
663
2 23
2001-02
2005-06
Export Of Chemicals
0
50
100
150
200
250
107
4017 13
100
230
121
53
24
153
2001-02
2005-06
Trends In Exports
0
5
10
15
20
25
30
35
40
45
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
U S
$ B i l l i o n
Global Chemical Industry
Japan
9%
India
2%
Korea
4%
China
10%
Latin
America
5%
nafta
25%
rest of
Europe
5%
EU
31%
Africa
1%
Asia
7%
Global Chemical Industry = $2.4 trillion
• Europe 36%
• China 10%
• India 2%
• NAFTA 25%
Major Sectors in Chemical Industry• Soda Ash, Caustic soda, Liquid Chlorine, etc .
Alkali
• Aluminum Fluoride, Calcium Carbide, CarbonBlack, Red Phosphorous, etc.Inorganic
• Acetic acid, Methanol, Formaldehyde, Citric Acid,Chloro Methane, Ethyl Acetate, etc.Organic
• Pesticides/Insecticides registered under section9(3) of the Insecticide Act 1968.Pesticides
• Azo Dyes, Acid Direct Dyes, Basic Dyes, IngrainDyes, Oil Soluble Dyes, Sulphur Dyes, Food Coloursand Other Dyes.
Dyes & Dye stuffs
Future
• The chemical Industry in India has the potential to grow to around USD 100
Billion by 2010 according to KPMG’s analysis. This would imply an annual
growth rate of 15.5%.
Government Regulations
• Duty free import of specialized inputs /chemicals and flavoring oils is allowed to
the extent of 1% of FOB value of preceding financial year’s export.
• Export of Special Chemicals, Organisms, Materials, Equipment and Technologies
shall be subject to fulfillment of the conditions indicated in ITC(HS).
• Exports and Imports shall be free, except where regulated by FTP or any other
law in force.
• The procedure for facilitating foreign direct investment has been simplified. Most
of the chemical items fall under the RBI automatic approval route for FDI/NRI
investment up to 100 per cent.
Tariff
Customs Duty
• The peak rate of Customs Duty on most Chemicals is 7.5%
• On basic raw materials like sulphur, rock phosphate, naturalborates is 5%
• On most building blocks & feedstock the duty is 5% (ethylene,propylene, benzene, toluene, xylene )
Excise Duty
• On almost all chemicals the excise duty is 16%
Major Exports
• UAE
• United States
• United kingdom
• China
Chemical Industry structure in India
4%
6%
8%
8%
23%
51%
Sales
Punjab - 4%
T.N - 6%
U.P - 8%
Maharashtra - 8%
Other States - 23%
Gujarat -51%
Petrochemicals
• Domestic market size – US$700 million
• Fastest growing sector at 15%
• Reliance – key player in this market
0100000200000300000400000500000600000700000800000
ETHYLENE
PROPYLENE
Inorganic Chemicals
• US$ 2.5 Billion industry.
• Average growth rate 9% per annum
• 4.5% of global market
Organic Chemicals
• $1 Bn Industry
• Units Concentrated in western India
Paints & Dyes
• Market size – US$110 million.
• Growth rate – 12%
• Indian market is 6% of the global market
Pharmaceuticals
• India ranks 4th In terms of volume & 13th interms of value.
• Domestic market size – US$450 million
• Indian market is 1.6% of the global market
• Domestic market growth rate – 8 to 9%
• Bulk drug units concentrated around three areas: – Bombay - Ankleshwar
– Hyderabad - Madras – Chandigarh
Fine & Specialty Chemicals
• Market size – US$860 million
• Growth rate – 10-12%.
Agrochemicals
• Domestic market size – US$88 million
• Domestic market growth rate – 10% annually
• 2.5% of the global market.
• In India, insecticide commands major share76%.
• Globally, herbicides commands major share48% & insecticide only 29%.
• India is largest manufacture of basic pesticidechemicals among South Asia & Africa, next
only to Japan.
TATA CHEMICALS
• The Company was incorporated on 23rd Jan 1939 at Mithapur
(in Gujarat, India).
• Iodised salt segment and nitrogenous and phosphatic
fertilizers
• Service sector
• 2005 - Internalisation strategy
• 2006- acquisition of UK based Brunner Mond Group
• 2007- entered the fruits and vegetables distribution business
• 2008- acquired General Chemical Industrial Products, one of
the largest soda ash manufacturers in the US.
Innovation
• leverage its expertise in chemicals and agri-
businesses
• TCL Innovation Centre in 2004
• climate change through "green chemistry"
• Flue gas treatment, carbon absorption and
nano glass-coatings for insulation
Sustainable chemistry
• Highest standards of corporate governance andbusiness practices
• Safety, health and environmental issues
• Working with farmers
• Tata Kisan Sansars
• Tata Chemicals Society for Rural Development(TCSRD) – 1980
• biodiversity of land along the coastline and thenesting sites of migratory birds
PRODUCTS
• Manufacturing Products
Soda ash
sodium bicarbonate
Bulk chemicals
FINANCIAL ANALYSIS
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