“Indian chemical industry has an established base, and today the industry stands at the cusp of high growth”, said Dr. Jacques Perez, Managing Director and Country Representative, LANXESS India, opening the session on ‘Making India a specialty chemicals hub: Potential and Investment opportunities in the sector’. The optimistic start set the tone for the session, indicating that the Indian chemical industry has significant potential which could be realized by leveraging the strengths and addressing the challenges in a focused manner.

In his presentation, Perez reflected on industry findings which showed that India has a lower per-capita consumption of chemicals as compared to China despite a similar population, providing an opportunity for a sustained long term growth. He explained that the domestic demand is on a constant rise spurred by the rapid rate of urbanization and increasing population in the ‘working and consumer’ age bracket. This implies that the demand for better quality and safer products will increase, which in turn will propel the demand for specialty chemicals. Thereby, it is imperative that the industry and government lay emphasis on the specialty chemicals sector and make the most of the ‘Make in India’ initiative by the Government of India.

However, this can be made possible only if certain essentials are provided for with an aim  to secure a competitive advantage, Perez affirmed. Adequate and continuous availability of feedstock(raw material for specialty chemicals) and energy, upgraded and stable infrastructure, sustainable chemical parks at par with global standards are quintessential to attract investments in the specialty chemicals sector, he pointed out.“Chemical zones like PCPIRs incorporate these features in concept but implementation is rather slow. Such zones must be built along with sewage and effluent treatment linkage from plants to common disposal sites, good connectivity to ports by roadways and railways, and other utility features for sustainable development”, emphasized Perez.

He advised that the government could step in to help companies in technological upgradation and take measures to foster innovation in the Indian chemical industry. Only then will the industry enrich its prospects for long term growth, consolidate its position as a top notch player in the global chemical industry and become a sourcing hub for the global markets.

Last but not the least, he said that the industry and government both must take measures to attract, recruit and retain the right talent in the industry and focus on skill development. He iterated that skilled manpower will be required to make India a  ‘zero defect, zero effect’ manufacturing hub.

Perez admitted that while steps are required to fuel the growth of the Indian chemical industry, certain initiatives by the government  such as the formulation of the National Manufacturing Policy, roll out of National Chemical Policy and the ‘Make in India’ initiative are noteworthy and will support the cause.

Perez also shared LANXESS’ focus on sustainability at sites and its‘Make in India’ experience with the audience. LANXESS has a greenfield investment in Jhagadia in Gujarat, which manufactures rubber chemicals, ion exchange resins, biocides, additives and release agents and high-tech plastics. The site is built to world class standards with focus on optimal resource use, minimum environmental impact and safety for all.

The other site is in Nagda, Madhya Pradesh which manufactures advanced intermediates catering to various application segments like agrochemicals, pharmaceuticals, flavors and fragrances, dyestuff and coatings. LANXESS has made substantial investments in the site towards sustainability, since acquisition of the site assets in 2009. This site is currently a ’Zero liquid discharge’ facility and demonstrates a benchmark for the Indian chemical industry.

source : Lokesh Shastri