India’s chemical industry is a force to be reckoned with, both regionally and globally. The country is currently ranked as the world's sixth-largest producer of chemicals, and it boasts the third-largest position in Asia1. The chemical industry plays a crucial role in India’s economy, contributing a significant 7% to its gross domestic product (GDP).
By Sudhindra Hathwar, Business Development Manager, Alleima India
Locally, the chemical industry has a rich history dating back to the early 19th century. Initially focused on producing basic chemicals like sulfuric acid and caustic soda, the industry experienced a significant transformation following India's independence. Fueled by rapid industrialization, the demand for chemicals across various sectors skyrocketed. This period witnessed strong government support and the establishment of public sector undertakings (PSUs) that played a pivotal role in propelling the industry's growth.
Today, India's chemical industry is poised for even greater heights. Government initiatives like "Make in India" and "Atmanirbhar Bharat" (Self-Reliant India) are propelling domestic manufacturing and import substitution, with the chemical sector identified as a key growth driver. This strategic focus has resulted in immense potential for job creation, economic diversification, and technological advancements.
Currently valued at USD$220 billion in 2023, it is projected to soar to USD$383 billion by 2030, with a compound annual growth rate (CAGR) of 8.1%2.
Amidst this growth, one significant challenge plagues the chemical industry: corrosion. The chemical industry, with its diverse range of processes and harsh environments, is particularly susceptible to corrosion. Corrosive chemicals can wreak havoc on essential equipment, leading to costly repairs, operational downtimes, and safety hazards.
Here's where we step in
As a leading manufacturer of high-value-added products in advanced stainless steel, special alloys, and industrial heating, Alleima has been advancing industries through materials technology and driving innovation for over 160 years. We make our customers’ products and processes safer, more sustainable and more efficient.
One of our most notable innovations that combat corrosion challenges is the award-winning Sanicro® 35. This high-performance, cost-efficient alloy is designed to withstand the harshest environments, providing superior corrosion resistance and mechanical properties. Sanicro® 35 is particularly suited for use in heat exchangers and other critical applications within the chemical industry, where resistance to various forms of corrosion, including pitting and stress corrosion cracking, is paramount.
Sanicro® 35 was developed as a response to requirements from the market for a stainless steel alloy that would be able to combine high corrosion properties with high mechanical strength. This innovative alloy addresses the industry's pressing need for materials that can endure aggressive chemical processes while ensuring longevity and reliability. It offers exceptional corrosion resistance, reducing maintenance costs and extending its lifespan, and is a cost-effective solution that balances performance with affordability, making it an ideal choice for various applications.
Our local presence
In India, Alleima established our first operation in Pune in 1983. Since then, we have been continuously expanding our product portfolio and capabilities to cater to the specific needs of the region. Today, India is one of our key geographical areas, and our manufacturing facility in Mehsana has grown significantly.
Late last year, the Mehsana mill completed its three-phase expansion in production capacity and infrastructure, which included a cold finishing heat exchanger tube manufacturing line that opened in 2020, an H&I tubing factory in March 2023, and a new heat exchanger tube facility in November 2023. The expansions increased our heat exchanger tube capacity and capabilities to produce advanced alloys, positioning us to capitalize on the growth opportunities arising from India's chemical and petrochemical industries over the next decade.
Supporting the future of the Chemical industry
At Alleima, we believe in continuous improvement and innovation to meet the evolving needs of our customers. We are committed to advancing our product portfolio to include more grades of corrosion-resistant alloys, tailored to the specific challenges faced by the chemical industry. This proactive approach ensures that we can address any corrosion challenges with our innovative solutions, leveraging our extensive global experience and capacity.
Our goal for the Indian chemicals market in 2024 is ambitious yet attainable. We aim to achieve business growth of 15-20% within the chemical segment. This will be driven by our commitment to deliver high-quality, corrosion-resistant solutions like the Sanicro® 35, which will enable our customers to operate more efficiently and sustainably.
In summary, the Indian chemical industry stands on the cusp of tremendous growth, and Alleima is poised to play a crucial role in this journey. Through our advanced materials technologies and solutions, we will continue supporting the industry in overcoming its challenges and achieving its full potential for many years to come.
