Specialty chemicals, comprise low volume, high value chemicals with specific applications.
The specialty chemicals industry is classified into a mix of end-use driven segments (agrochemicals, personal care ingredients, polymer additives, water chemicals, textile chemicals and construction chemicals) and application-driven segments (surfactants, flavours and fragrances and dyes and pigments).
The nine segments constitute a market of USD 18.8 bn (2014) in India and are expected to grow at 12% p.a.
Global market size of USD 54.5 bn; to grow at 5.5% over 2014-19. Growth to be driven by need for improvement in crop yields
• Indian market size (production) of USD 5.7 bn; to grow at 12% over 2014-19.
• The market comprises several large Indian and global companies. Global giants like Bayer, Syngenta, Mosanto and DuPont have presence in India
• UPL, Bayer Crop Science and Rallis are the top 3 players in the Indian market
Classification of agrochemicals
1. Insecticides :
a. Contact insecticides :
b. Systemic insecticides
2. Fungicides :
3. Herbicides :
4. Other pesticides
With production worth USD 5.7 bn, India is the fourth largest agrochemical producer in the world
An estimated 85% of India’s crop loss (worth ~ USD 20 bn) is caused by pest infestation, disease and weeds and is avoidable by the use of agrochemicals, as per the estimates by the Crop Care Federation of India (CCFI).
At 20% of the global average, India has one of the lowest per hectare agrochemicals consumption rate
India is a major exporter of generic agrochemicals, featuring among the top 10 exporters globally, accounting for close to 5% of the global agrochemical market. ~ 45% of domestic production of agrochemicals is exported (as of 2014) accounting for ~ USD 2.6 bn in value.