India Caustic Soda Market Analysis: Plant Capacity, Production, Operating Efficiency, Process, Type, Demand & Supply, End-User Industries, Distribution Channel, Regional Demand, 2015-2035

Format: Online | Last Updated: Feb 2022

[Online Quarterly Update] India Caustic Soda market demand stood at 3.74 million tonnes in FY2021 and is forecast to reach 5.52 million tonnes by FY2035, growing at a healthy CAGR of 6.54% until FY2035. Caustic soda is an inorganic bulk chemical, strongly alkaline, and odourless having application in various fields like pulp and paper manufacturing, viscose yarn, staple fiber, aluminum, textiles, soaps & detergent, dyestuffs, drugs and pharmaceuticals, petroleum refining, etc. It occurs in two forms, liquid form which is called Caustic Soda lye & solid form which is called Flakes or pellets. Increasing demand from the textile and alumina sectors due to rising investments in these sectors is likely to drive the overall India Caustic Soda demand in the country.
 
India is a surplus in Caustic Soda production volumes with most of the plants operating at around 80-85% efficiency. However, the increase in cheaper imports has forced domestic manufacturers to curtail their margins predominantly due to the high input and logistics costs involved within the country. Although disruptions in overseas trade and nationwide lockdown weighed on the overall India Caustic Soda consumption in Q4 FY2020, strengthened India Caustic Soda demand from hand wash and soaps manufacturing industries supported the industry outlook during the Coronavirus outbreak. In addition to that, the extension of Anti-Dumping Duty on the imports of Caustic Soda from the U.S. and Saudi Arabia, as per the petition filed by the Alkali Manufacturers Association of India (AMAI) in FY2017 has given a strong boost to the domestic India Caustic Soda Industry. India is one of the largest consumers of Caustic Soda Lye, led by strong demand from Alumina and Pulp & Paper industries. Demand for India Caustic Soda Lye is high in the eastern region due to the presence of heavy alumina industries like Utkal Alumina, Vedanta limited & Nalco in state like Odisha. These companies are the major end users of India Caustic Soda Lye.
 
Major end use industries of India Caustic Soda are chemical industries, textile, alumina, pulp & paper, soap & detergent, and others. Out of these, chemical industries hold approximately 28.70% of total demand in FY 2021. Other application of India Caustic Soda serves a wide range of end-use sectors comprising of water treatment, domestic cleaning, metal processing, glass making, mining etc. India Caustic soda is an important raw material in the manufacturing of various chemicals. It is used as an intermediate, reactant, pH regulator, in acidic waste treatment, etc. in chemical industries.
 
India Caustic soda is also used to extract alumina from bauxite ore in the Bayer’s process. Concentrated solution of caustic soda dissolves alumina to form sodium aluminate, from which alumina is separated by reverse reaction.
 
The structure of the Indian textile industry is extremely varied with hand spun and hand-woven fabric at one end and the capital-intensive mill sector on the other hand. India Caustic soda is used in textile industry in manufacturing of Manmade Fiber and mercerization of cotton and blended fabric. “Mercerization” of cotton and cotton blended fabrics by which the fabrics, held under tension at room temperature are dipped in aqueous caustic solution. Mercerization renders the cotton fibre smooth and lustrous and increases the fabric strength. 
 
Western states like Gujarat, Maharashtra, and Rajasthan have strong presence of textile, soap & detergent, pulp & paper and chemical industries which is powering the demand of India Caustic Soda in the region. Western region is expected to dominate the market through FY2035, owing to growing number of chemical (organics & inorganics), paper & pulp, textile, and Soaps & detergent industries, which are generating huge demand for India caustic soda & with new capacity additions in the sector it is likely to witness robust growth in the forecasted period.
 
Moreover, major players venturing into the expansion of India Caustic Soda capacities is expected to further contribute to widening the expanse of the sector in the domestic market. One of the major projects in the sector includes that of GACL-NALCO Alkalis and Chemicals Private Limited (GNAL) Caustic Soda plant which is expected to start production by FY2023. The company has been planning to set up an 800 tonnes per day grassroot India Caustic Soda plant in Dahej. Adani Group of Industries is also looking to enter the India caustic soda market by setting up of two manufacturing units with 600 thousand tonnes of capacity each, the production unit is expected to roll out in two phases. The first unit is projected to be commissioned by FY2026 followed by another unit in FY2033.
 
Some of the major players operating in India caustic soda market are Grasim Industries Limited, DCM Shriram Consolidated Limited, Gujarat Alkalies and Chemicals Limited, Reliance Industries Ltd, ChemPlast Sanmar, DCW Limited, Nirma Limited, Meghmani Organics Limited., TGV SRAAC Ltd., Atul Limited, Gujarat Fluorochemicals Ltd., Kutch Chemicals Industries Ltd. (PANOLI Intermediates), Tata Chemicals Ltd., Lords Chloro Alkali Ltd., Century Rayon (Grasim Industries Limited), Durgapur Chemicals Ltd., The Andhra Sugars Ltd, Punjab Alkalies & Chemicals Ltd, Bodal Chemicals (Mawana Sugars Ltd.-Siel Chemical Complex), Chemfab Alkalis Ltd, The Travancore-Cochin Chemicals Ltd., Tamilnadu Petroproducts Limited and Others.

Years Considered for this Report:
 
Historical Years: FY2016 –FY2020
Base Year: FY2021
Estimated Year: FY2022
Forecast Period: FY2023 – FY2035
 
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Objective of the Study:
 
•        The primary objective of the study was to evaluate and forecast Caustic Soda capacity, production,
          demand, inventory, and demand – supply gap in India. 
•        To categorize Caustic Soda demand based on end use, region and sales channel.
•        To study trade dynamics and company share in India Caustic Soda market.
•        To evaluate and forecast Caustic Soda pricing in India Caustic Soda market.
•        To identify and profile major companies operating in India Caustic Soda market.
•        To identify major news, deals and expansion plans in India Caustic Soda market.
   
To extract data for India caustic soda market, primary research surveys were conducted with caustic soda manufacturers, suppliers, distributors, wholesalers, and end users. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analysed various end user segments and projected a positive outlook for India caustic soda market over the coming years.
 
ChemAnalyst calculated India caustic soda demand analysing the historical data and demand forecast was carried out considering the raw material prices and mapping the production capacity of caustic soda manufacturing units. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analysing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
 
Key Target Audience:
 
•      Caustic Soda manufacturers, suppliers, and other stakeholders
•      Organizations, forums, and alliances related to Caustic Soda distribution
•      Government bodies such as regulating authorities and policy makers
•      Market research and consulting firms
 
The study is useful in providing answers to several critical questions that are important for industry stakeholders, such as caustic soda manufacturers, distributors, and industry policy makers. The report also provides useful insights about which market segments should be targeted over the coming years to strategize investments and capitalize on growth opportunities.
 
Report Scope:
 
In this report, the India Caustic Soda market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
 
Attribute
Details
Market size volume in FY 2021
3.74 million Tonnes
Market size volume by FY 2035
9.78 million Tonnes
Growth Rate
CAGR of 6.54% from FY 2022 to 2035
Base year for estimation
FY2021
Historic Data
FY 2016 – 2020
Forecast period
FY 2023 – 2035
Quantitative units
Demand in thousand tonnes and CAGR from FY 2023 to 2035
Report coverage
Revenue forecast, demand & supply, competitive analysis, competitive landscape, growth factors, and trends
Segments covered
1. End Use:(Chemical Industries, Alumina, Soap & Detergents, Paper & Pulp, Textile, Metal Processing & Others.)
2. Sales Channel: (Direct and Indirect Sales)
3. Type: (Lye, Flakes)
4. Company Share
Regional scope
North, West, East, and South
Key companies profiled
Grasim Industries Limited, DCM Shriram Consolidated Limited, Gujarat Alkalies and Chemicals Limited, Reliance Industries Ltd, ChemPlast Sanmar, DCW Limited, Nirma Limited, Meghmani Organics Limited., TGV SRAAC Ltd., Atul Limited, Gujarat Fluorochemicals Ltd., Kutch Chemicals Industries Ltd. (PANOLI Intermediates), Tata Chemicals Ltd., Lords Chloro Alkali Ltd., Century Rayon (Grasim Industries Limited), Durgapur Chemicals Ltd., The Andhra Sugars Ltd, Punjab Alkalies & Chemicals Ltd, Bodal Chemicals (Mawana Sugars Ltd.-Siel Chemical Complex), Chemfab Alkalis Ltd, The Travancore-Cochin Chemicals Ltd., Tamilnadu Petroproducts Limited and Others.
Customization scope
Free report customization with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options
Avail customized purchase options to meet your exact research needs. Explore purchase options
 
Competitive Landscape
 
Competition Outlook: Outlook of leading 10 players based on product portfolio, sales footprint, etc.
 
Company Profiles: Detailed analysis of the major companies operating in the India Caustic Soda market.
 
Available Customizations:
 
With the given market data, ChemAnalyst offers customizations according to a company’s specific needs. 
 
In case you do not find what, you are looking for, please get in touch with our custom research team at sales@chemanalyst.com

Frequently Asked Questions (FAQ):

What is the market size and growth rate of India Caustic Soda? 

The market size of India Caustic Soda is 3.74 million tonnes as of FY2021, and it is growing with a healthy CAGR of 6.54%.

What are the major end-use industries of Caustic Soda? 

Caustic Soda is widely used in a wide range of end use industries including Chemical Industries, Alumina, Soap & Detergents, Paper & Pulp, Textile, Metal Processing & Others.

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