Potential and Difficulties facing Indias Chemical industry: Perspectives of LANXESS

APAC significant contributor to the global chemical business
Indian specialty chemical industry can grow up to USD 100 billion by 2020
Challenges want to be addressed to recognize potential

LANXESS, a global specialty chemicals business and a leading player in the Indian chemical business shares opportunities and gives recommendations for addressing the challenges faced by the business, at the 12th Annual Chemical Weekly organization Outlook conference held at the Hotel Leela in Mumbai. Around 150 delegates from all walks of chemical business attended the conference. The audience was really responsive and posed thought provoking questions at the finish of every single session. Being a firm that has made an overall investment of 150 million euros on constructing its assets in India in the final 3 years and built a case for sustainable development in India, LANXESS clearly stood out as 1 of the forerunners in the Indian chemical business at the forum.

At the outset, Mr. Deepak Mehta, an business veteran and the moderator for the opening panel congratulated Dr. Joerg Strassburger, Managing Director and Country Representative, LANXESS India Private Restricted, for constructing a strong case for the Indian Chemical business by not only establishing a productive business in India but by expressing his views clearly on the operating environment for chemical businesses in India.

Dr. Strassburger stated that India has the prospective to construct a USD 80 to USD100 billion specialty chemical industry by 2020 and Asia Pacific region now forms almost 42% of the global market for chemicals, clearly creating it the largest contributor. This further implies that India can leverage this shift in specialty chemical landscape.

The elements that can propel this growth are the powerful domestic demand supported by the huge rising middle class household consumption, boost in discretionary spending by middle-class households and buoyant exports. Dr. Strassburger shared that the Indian chemical business has attained a vital size of USD100 billion approximately and is growing at close to 8 – 10% on an typical. He also explained that end user industries like construction automotive, tyre and agrochemical are all growing at quite wholesome rates at present.

Keeping this in mind, LANXESS strategic focus lies in the BRIC countries for growth each by way of targeted acquisitions and organic growth.

Dr. Strassburger further addressed some of the challenges that can deter the growth of the chemical business in India. The need to have for public policy support, improvements in infrastructure, availability of continuous power supply, very good connectivity to ports by road and rail, availability of feedstock, simplified tax structure and regulations, chemical parks with adequate facilities, availability of trained and skilled human capital, facility for single window clearance for quicker clearances of permits and approvals are the elements that surfaced as the major areas that required attention for the market to recognize its accurate value prospective in India.

LANXESS is a strong believer of the success story of Indian chemical business and will continue to explore further opportunities for investments in India, if the framework is adequate concluded Dr. Strassburger optimistically, at the conference exactly where LANXESS stood out as an eminent player in the Indian chemical industry.