Intellectual Thoughts by Sanjay Panda


Indian Chemical Industry to grow by 11-12%



The Indian chemicals industry, which earned revenues in the range of US$155-bn to US$160-bn in 2013, is likely to grow at a rate of 11-12% in the next two to three years. Though commodity and bulk chemicals are likely to experience slow growth, owing to reduced industrial output, the specialty chemicals segment should show faster growth.

Sectors such as personal care ingredients & additives,  active pharmaceutical ingredients (APIs), paints & coatings, and construction & water chemicals are some segments likely to perform well. "Even in 2013, these sectors showed good growth and companies in this segment have been investing and expanding.

The specialty chemicals sector is characterized by requirements for high-value products, expanding customer base, and addition of new participants at various levels of the value chain. Overall, the market is likely to grow at a Compound Annual Growth Rate (CAGR) of 13-14%. The sector forms about 15-16% of the total chemical industry, with dyes & pigments, leather chemicals, construction chemicals and personal care ingredients, being important constituents. In terms of production value, the specialty chemicals sector forms about 18-20% of the total chemical production in India. Though increasing regulatory requirements and raw material price fluctuations  have posed challenges for chemical manufacturers, exports have been increasing at a rate of 8-9%. 


CW

India commissions first major SBR plant



The commissioning of  Indian Synthetic Rubber Ltd. (ISRL, a JV of IOCL, TSRC, Marubeni) plant to manufacture  Styrene Butadiene  Rubber ( SBR)  is a significant milestone for  Indian  synthetic rubber industry. It will have the capacity to make up to 120-ktpa of the synthetic rubber. Till date India used to be  a 100% importer of SBR despite of huge demand of SBR.

SBR is the world’s oldest synthetic elastomer and also the most important, although demand for natural rubber is twice as much. The automotive sector is the largest end-use of SBR – accounting for 65-70% of global demand, mainly for tyre and tread. The first commercial processes for SBR produced emulsions (e-SBR), but later developments in solution polymerization have led to the development of s-SBR grades with superior mechanical properties, particularly tensile strength, low rolling resistance and handling, in tire applications.
Next  India will have its first butyl rubber plant. Polybutadiene rubber capacity is also being expanded.

USFDA increases inspections of drug facilities in India


USFDA  is increasing its inspections of facilities of drug makers in India, the second largest provider of finished dose products to the US, to ensure compliance of approved manufacturing norms. The US health regulator, which has been cracking the whip against many Indian pharmaceutical firms, including Ranbaxy, Wockhardt, is also recruiting and training additional drugs investigators in India. 

USFDA's presence in India is being increased to 19 from 12 American staff based in-country, including 10 dedicated specifically to medical products. Other staff include foods and devices inspectors, and policy analysts. 

In order to meet requirements of the new Food and Drug Administration Safety and Innovation Act (FDASIA) - Generic Drug User Fee Amendments (GDUFA), the US health regulator is stepping up the inspections. Under the FDASIA, the USFDA is required to achieve the same inspectional schedule for foreign facilities as domestic manufacturers, and to clear the backlog of applications by the end of the first five-year user fee authorisation period. 

India, as the second largest provider of finished dose products to the US with almost 10
per cent of that market.