The growth of the chemicals industry will be driven by specialty chemicals going forward, given the increasing focus on sustainability and associated segments such as renewable energy, electric vehicles and green hydrogen, among others.
Now is the time for chemical players to move on the opportunity by strengthening the industry-academic partnerships, said industry representatives.
Currently, the Indian chemicals industry’s share is 3 per cent (valued at about $185 billion) of the global chemical industry. However, there are substantial growth opportunities ahead for the industry over the next two decades.
“So far, the growth has generally come from commodities and chemicals that anybody could manufacture. But, in the next 10 or 20 years, the growth opportunities will be in specialty chemicals space,” said Suresh Ramachandran, Country Head & Director, Askema Chemicals India, while addressing a session at a meeting organised by the Indian Chemical Council.
Vast opportunities
There will be two ways the business could go in the specialty chemicals area since the technologies are only in the hands of a few. One, global companies could come and set up shop in India. The other vast opportunity is to develop the new technology in the country backed by a strong industry-academic collaboration, he said.
Since sustainability assumes significance and India has set ambitious targets in the area of renewable energy and associated segments such as electric batteries, battery storage and hydrogen, there will be huge technology-related opportunities for the Indian chemical industry.
EV battery tech
Currently, EV battery technology is coming from outside. As the EV battery space enters a new technology curve, chemical companies can play pivotal roles in unlocking the electrification transformation as all these new technologies will be linked with chemicals. “I see a very bright opportunity for the industry to work with institutes in developing or revolutionising technologies in the electric battery and renewable energy segments,” added Ramachandran.
He pointed out that the change and disruption in technology would be very dramatic and fast. There will be constant disruption of technology and the industry needs fresh thinking and approaches from institutes. Also, there are bright opportunities for India to become a hub for AI (artificial intelligence) and predictive modeling.
Sustainability focus
Discussing sustainability and the chemical industry, Ramya Bharatram, Additional Vice-President, Indian Chemical Council, said that growing emphasis on sustainability had resulted in strengthened regulations related to ESG practices, and the chemical industry was subjected to increased scrutiny regarding its environmental impact, social responsibility and governance practices.
“India has also committed to net zero by 2070 while other countries have earlier targets. To achieve this, the Indian industry will be forced to adopt better technology and more sustainable practices in order to supply to its global customers. By working together and leveraging the collective intelligence of the chemical industry and academia, challenges could be converted into opportunities for growth, innovation, and sustainable progress,” she said.