Where to buy chemicals in India?

Where to buy chemicals in India?

Chemicals in India can be purchased from chemical suppliers, manufacturers, and third-party dealers. This trend of buying chemicals still remains predominant in India with the majority of consumers preferring to directly contact the suppliers or manufacturers.

With the emerging digitization, the chemical industry is adapting the online chemical purchase to ease the tedious supply chain process. Websites like Carbanio.com have revolutionized the process of buying and selling chemicals, and are the perfect sourcing partners for any quantity of chemicals for both the suppliers and buyers. According to a recent report by Roland Berger, this trend is going to change over the next five years and complete digitization would take over.

Are chemicals sold to individuals in India?

It is not illegal to buy chemicals by individuals in India, but it depends on the kind of chemicals you want to buy; the hazardous chemicals are banned from buying. Most online portals don’t sell chemicals to individuals, you either buy chemicals as a company or through a research institute. However, basic chemicals are easily accessible online for public use, but you’ll hardly find chemical suppliers that sell to individuals.

The Indian Chemical Industry: Overview

The chemical industry plays a crucial role in the economic growth of any country, affecting the operations of the other sectors too. The Indian chemical industry is one of the oldest and diversified industries that include agriculture, textiles, pharmaceuticals, automotive, food processing, petrochemicals, and consumer durables to name a few. It is the 7th largest producer of chemicals in the world and the 3rd largest producer in Asia. It has over 70,000 chemical manufacturing units with about 80,000 commercial products being manufactured. As Asia’s contribution to the global chemical economy is immensely growing, India has managed to get the focus from chemicals companies across the world.

The Indian government has recognized the chemical industry as the key element that contributes to the country’s growth. Hence, the government has permitted the chemical industry for 100% FDI (foreign direct investment). To strengthen the chemical industry further, the Indian government announced the reduction in duty for several chemical products in the year 2015-2016.

Important sectors of India’s chemical industry

Basic or Commodity Chemicals: Basic chemicals are either organic and inorganic compounds produced in large quantities. They are usually raw materials sold within the chemical industry before becoming the end product for general consumers. The basic chemicals produced in India are fertilizers, basic industrial chemicals, polymers, bulk petrochemicals, and inorganic chemicals.

Life Sciences Chemicals: These chemicals are used for a specific outcome in humans, animals, plants and other living forms. Life science chemicals include pharmaceuticals, agrochemicals, and biotechnology products.

Specialty Chemicals: Specialty chemicals are elements with unique physical and chemical properties and produced for specialized use. Some of the examples of specialty chemicals are pigments, dyes, antioxidants, lubricants, adhesives, and additives.

Consumer Products: Consumer products are the end products ready for consumption, such as soaps, detergents, and cosmetics. These products majorly use the elements: chlorine, phosphoric acid, sulfuric acid, nitrogen, oxygen, ethylene, lime, propylene, and polyethylene.

Top chemical companies in India

  1. UPL Limited
  2. Pidilite Industries Limited
  3. BASF India Limited
  4. Aarti Industries Limited
  5. Tata Chemicals Limited
  6. Gujarat Heavy Chemicals Limited
  7. India Glycols Limited
  8. Gujarat Alkalies and Chemicals Limited
  9. Gujarat Fluorochemicals Limited
  10. Phillips Carbon Black Limited

Chemical industry trends in India

The Indian chemical industry consists of both small and large scale companies spread across the country. These companies have contributed 2.1% towards the country’s GDP (gross domestic product) and accounts for 15.95% of India’s manufacturing sector. The industry is ever-growing and has witnessed a growth of 13-14% in the last 5 years.

India is a developing nation and emerging as one of the leading economies in the world. India is slowly seeing a digital transformation over the past few years. The Indian chemical industry is adapting to the digital technologies to buy chemicals online India. In addition to the supply of bulk chemicals to companies, you also have access to online lab chemical stores in India. Whether you want to buy science chemicals or lab chemicals India, it is made easy with the chemical supply companies online.

The factors that are responsible for the growth of the Indian chemical industry:

The fastest-growing economy: India is a fast-growing economy and the increasing urbanization has led to the growing demand for end consumption. With the expanding market and increased purchasing power has led to an increased demand for textiles, paints, fuel, and construction, offering growth opportunities to the chemical companies in the country. The growth rate is expected to increase by 10-13% in the coming years.

High domestic consumption: To keep up with the growing domestic demand, the chemical companies have increased the production capacity. The current domestic consumption rate is 33% of the total produce, this is expected to increase with the growing market trends and the further increase in the internal demand.

Large and expanding market: The Indian chemical industry is large, ever-expanding, and highly diversified. It produces over 80,000 chemical products for the growing domestic and international demand. The growing local and international demand is one of the key factors for the expanding Indian chemical industry.

Strong international presence: India has a strong export partnership with all the major economies of the world, and stands 6th in the global sales of chemicals and contributes over 3% to the global chemical economy. India is the central export market for dyes, pharmaceuticals, and agrochemicals, with the major tie-up with the US, Japan, the UK, Spain, Turkey, Singapore, and Switzerland. According to a report by Invest India, the chemical market size of India was $163 bn in 2017-18 and expected to grow substantially in the future.

The expected trends of the Indian chemical industry in 2020

The Indian chemical industry has seen an exponential growth until the year 2019, the same cannot be expected in the year 2020. The outbreak of the coronavirus epidemic across the world has led to the economic slowdown in all major countries including the US, China, and India. The ongoing fight against the coronavirus epidemic has affected the chemical supply chain leading to a fall in demand/supply of chemicals at the global level.

The chemical supply companies in India had a huge impact of the coronavirus outbreak, but it is expected that the Indian chemical industry will soon gear up to increase the supply and trade. India aims to increase its chemical market size to $ 304 bn by 2025.

Reshaping the Indian chemical industry with innovation

Indian chemical industry encourages Research and Development to make way for innovation, this will eventually improve the chemical processes and the quality of the end product. India’s access to new technology and the increasing spending power has led to the chemical companies to invest in research and innovation, and further expand and diversify. A strong emphasis on research and innovation has proved to be the growth drivers for time and time again. According to a report by FICCI, India spends about 0.8% of GDP in chemical R&D.

Investment in R&D will help in:

  • High market participation
  • Create opportunity for new markets
  • Increases brand visibility
  • Engage new customer base
  • Create new, unique products

The Indian chemical industry is growing at a faster rate which will further stabilize the chemical supply chain. The increase in production will take care of domestic consumption and export too. It is expected that India will be the major chemical export partner for many countries in the near future.