India's specialty chemical business is expected to grow from $22bn to $80-100bn by 2020, according to a McKinsey & Company report.
The 'Building a global scale specialty chemical industry in India' report said that specialty chemicals have accounted for 20% of $2.5tn global chemicals sales in 2010.
The report also said that around one third of the world's specialty chemicals business may move to Asia by 2020.
"By 2020, approximately $350bn of the projected $1tn global specialty chemical industry could move to Asia (excluding Japan), driven by downstream demand and competitive manufacturing costs," the report added.
McKinsey suggested that for the success of the industry, India needs to develop local products at the right price, utilise merger, acquisitions and collaborations, and build a strong value proposition to attract talent.
McKinsey has also suggested the Indian Government encourages specialty chemicals companies to build new plants in petroleum, chemicals and petrochemicals investment regions ( PCPIRs), and upgrade chemical industries to facilitate the success of the industry.
The global consulting firm said the government should also create a specialty chemicals forum to define relevant consumption standards and drive innovation, and establish a database of chemical inventory of the country's chemicals sector.
Specialty chemicals products are used in various applications, including in dyes, pigments, pesticides, fertilisers and colouring industries.
