In this issue, we delve into the new developments in the Indian chemical industry. Pawan Suvarna writes on India’s caustic soda scenario while Divesh Khemani writes on Chemarc’s effort to digitise the chemical sector- an offering that AGR is promoting.
The Caustic Conundrum: Will India take centre stage?
– Pawan Suvarna- Assistant Manager, Business Research
The global chlor-alkali industry forms a key base for the chemicals industry. Caustic soda is manufactured through the electrolysis of sodium chloride solution (brine). India emerges as a prominent player amidst a framework of global demand dynamics. Serving as a cornerstone across diverse sectors such as textiles, chemicals, and PVC production, caustic soda holds pivotal significance. India’s ascent is marked by robust demand growth powered by factors like alumina import substitution and domestic capacity expansions, positioning the nation as a substantial global supplier. Meanwhile, China, a longstanding powerhouse in the market, grapples with challenges like slowdowns in alumina production, leading to diminished export volumes and underutilized capacities. Looking ahead, India anticipates a surplus production scenario driven by strategic initiatives like ‘Make in India’ and major projects. With global demand on the rise and China facing hurdles, India aims to strengthen its position as a key caustic soda supplier, poised to capitalize on emerging opportunities in the international market.
Indian Caustic Soda Market – Future Demand and Supply Gap (KT)
Source: AGR Analysis
Digitizing Procurement for the chemical industry
– Divesh Khemani – Vice President
AGR constantly endeavours to bring the latest and the best to its clients and we are pleased to announce our tie-up with Chemarc.com, a versatile and comprehensive digital platform to transform procurement in the chemical industry. RFQ and Reverse Auctions on Chemarc help achieve the best price discovery in procurement from both existing and new vendors with ease, helping the procurement function deliver significant cost savings. There are also provisions for negotiations, cost comparisons, approvals and ordering as well as end-to-end fulfilment to carry out the entire procure-to-pay cycle for both Direct and Indirect Materials at one place on the platform to simplify workflows. Data is captured at each stage to provide insightful analytics for the right decision-making, easy monitoring, and continuous improvement. The other unique feature of Chemarc is that it is easy to implement and use. Also, there are innovations in supplier onboarding which enable online procurement on Chemarc to commence within days of adopting the system. Chemarc can also easily be integrated with any ERP system to streamline the internal and external workings of the business. Procurement is typically 60-70% of the sales in most chemical businesses where profits are typically 10%. By targeting even a 2-3% improvement in input costs using Chemarc, companies can improve EBITDA by 10-15%!!! Digital platforms enable efficient, transparent, and convenient connections, communications, workflow, and data capture on the platform to streamline and optimise external interactions and business processes like ERP has done for internal. It is time for companies to adopt digital platforms, and we are happy to bring this best-in-class platform to the industry.
I would be pleased to speak to those interested. Please write to me at divesh@agrknowledge.com
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