Chemical Industry Classification

09 Jul, 2020

Classification of Chemical Industry

Chemistry is what makes the world around us. Even before industrialization, nations around the world had started to recognize the importance of chemicals in the human race’s daily functioning, and hence chemical industries came into existence. Know about the classification of the chemical industry.

Literary personalities in the field stepped into the industrial development field and revolutionized the game of chemicals forever. India started developing chemical compounds on a large scale in 1892 and hasn’t looked back ever since. The country now produces more than 80,000 diverse types of chemicals and exports them across the globe. But what exactly does the common man know about the functioning of this massive industry?

The answer is quite daunting. Besides their early existence and a few popular companies, the familiar people, have little knowledge about the country’s chemical businesses. This lack of awareness is a significant hindrance to the people themselves and negatively affects the companies’ financial organization, hence adversely affecting the nation’s economy.

Here we have established a few significant points about the manufacturing and categorization process in the industry so that the citizens can appreciate the impact it has on their daily lives.

The Primary Classification of the Chemical Industry is Given Below:

1) Basic Chemicals:

Popularly known as industrial chemicals, this sector needs a notable mention. It includes various materials derived from petrochemicals, some basic inorganic compounds, and other intermediates necessary for processing other chemicals.

This sector has set a firm foundation for other industries to develop and flourish in the country. India, one of the world’s largest chemical producers, continues to extract and export material to various countries, which boosts the economy.

This scenario is the most crucial chemical industry segment, as most upscale production mechanisms depend upon the chemicals produced here. Inorganic compounds require a special mention here as they are frequently underrated, but their uses are tremendous.

Importance of Inorganic Chemicals

India’s a rapidly developing nation that still relies on agrarian export profits. Being able to produce fertilizers at a low cost is a task for the country. Even the increased production of inorganic chemicals has made it a much easier undertaking in the past decade. India now exports fertilizers, pesticides, and other related chemicals to the US, Europe, etc. The profits made by exporting material are immense and thus prove invaluable to the country.

Chemical companies like Shanti Inorgochem which is a producer of inorganic chemicals at an inexpensive rate, but the quality is top-notch. Sodium sulphite powder, ammonium bisulphite solution, sodium bisulphite solution, sodium bisulphite powder, and Sodium Metabisulphite are few products the company manufactures and exports across the world.

In this case, it is because of the higher quality of these products that Shanti Inorgochem is included among India’s top five companies.

Related Article: Importance of Chemical Industry

2) Specialty Chemicals:

Have you ever read about the chemicals included in your make-up products? They are ascribed in a minuscule font behind or beneath the bottle. These chemicals are categorized as specialty chemicals.

Uses of Specialty Chemicals

Cosmetic additives, fragrances, lubricants, and surfactants are some examples. India’s chemical industries don’t primarily focus on these chemicals, given that the consumer base is not that diversified. Whatever inputs are required are imported from giants in the field like the US, Europe, etc. Their research and development in the area are immense, and so is the quality of the products.

3) Consumer Chemicals:

The necessary chemicals are well-known among the general public. They manufacture chemicals that are used regularly, such as perfumes, varnishes, toiletries, etc. This sector has shown a steady increase in its export rate as demand worldwide has increased for exotic Indian products.

Import and Export of Consumer Chemicals

Along with the USA, South-East Asian countries are the largest importers and contribute significantly to the national economy. The most popular among the products can be documented as dyes and their intermediates.

Judging by the number of different types of chemicals that are manufactured, processed, and sold in and beyond the borders of the country; it’s fairly evident that the impact on the economy of this industry must be humongous.

Related Article: What are Popular Goods Exported From India to UAE?

National and Global Market Influence

After industrialization, not only did the developed countries boost their economy, but the developing ones also had access to stabilize their financial pattern of distress. The market size increased, and so did the revenue. India’s chemical industry alone generates almost 180 billion dollars revenue per year, and the country’s trajectory is projected to cross 300 billion dollars by 2025. Every year, a staggering 1.5% increase is documented in the nation’s gross value due to this field, and it continues to grow with the help of globalization policies.

Classification of the Indian chemical industry brings us to the brink of its diversity and generous nature. The sector employs around 2 million people across the nation. This graph has shown an upward trend as the demand for chemicals has increased by almost 9 %. Though it serves as an unemployment predator, the field faces many hurdles in the form of environmental issues, hygiene problems, and the overall integrity of its structure. While some of them are realistic, others prove to be a hindrance to development and production.

Government policies and changing guidelines regarding the controversial chemical processing mechanisms often have the companies in a fix. Most of the time, they can’t adjust their prices with regards to inflation, citing the government’s changing financial strategies.

Issues Within the System

    1. The most crucial problem faced by every chemical processing plant in its establishment period is how to cut down on formula costs. Formula costs require highly qualified professionals working on a steady income plan. While this might increase the quality of the product while creating an effective manufacturing process, the right strategy to move ahead is hard to get correct on the first attempt.
    2. Other issues like intensive data culmination, tasking, and segregating tasks within the organizational structure are included in the chemical industry’s challenges, not only in India but also across the world.

Related Article: Challenges Faced by Chemical Industry

Key Takeaways

So, the Indian chemical industry is highly classified and Shanti Inorgochem is one of the top sodium bisulphite companies in India. Even though it contributes much to the economy, one has to consider several ethical, social, and cultural aspects of society. With this process, we conclude that the mightier the industry, the higher the profits, and the bigger the issues!

Written by: Avanish Patel

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