Industrial chemicals are broadly classified into:
• Base chemicals: Includes Petrochemicals, man-made fibres, industrial gases, fertilizers, chlor-alkali and other organic and inorganic
• Specialty chemicals: Includes Dyes & pigments, leather chemicals, construction chemicals, personal care ingredients and other
• Pharmacueticals: Includes APIs and formulations
• Agrochemicals: Includes Insecticides, herbicides, fungicides and other crop protection chemicals.
• Bio-technology: Includes Bio-pharma, Bio-agri, Bio-industrial
Base chemicals segment is the largest, accounting for ~45% of the total industry. Under base chemicals, petrochemicals segment is showing
an upswing in polymer and resin prices.
Pharmaceuticals segment is the next biggest segment, accounting for ~27%. Post recession, while the large markets like US and Western
Europe are slowing due to saturation and patent expiry of key blockbuster drugs, developing regions like Asia and Latin America are
experiencing strong growth driven by increasing prevalence of diseases, rising healthcare expenditure and CRO. China and India are
considered the most sought after outsourcing hubs.
Specialty chemicals segment is the third largest segment accounting for 22% of the overall industry. While the recession highlighted the
vulnerability of specialty chemicals to economic cyclicality, the segment is expected to register higher sales in 2010 with improving demand.
Globally, biotechnology accounts for 5% of the total market. The segment saw a slowdown in growth to 4% in 2009 compared to growth rate
of 12% before the downturn.
The global agrochemicals market(1% of total chemicals) is expected to complete its recovery in 2010 with growth resulting from rising
prices and positive volume effects.
Various Industrial chemicals are majorly produced as well as consumed in the low cost regions of Asia, and Central and Eastern Europe.
World's largest agriculture yield comes from the regions of Central and eastern Europe and Asia, they are the biggest producer as well
consumer of agrochemicals.
Pharmaceuticals is a highly mature market in particular – Asian subcontinent, China and India being world's largest Pharmaceutical
Middle East and Eastern Europe has always been sought after as a huge Petrochemical hub along with USA, with facilities shutting down in
USA and Eastern Europe, refinery becoming inefficient. Facilities at Middle East and North Africa becoming the hub of Petrochemical
downstream of the world.
We being working in this domain for several years all together and knowing big manufacturers of chemicals in each category gives us an
added advantage hence a value proposition for our customers when it comes down to delivering to them.