Samir Agarwal - Indian Pine Chemicals Industry - Chinese Version
India, with a population of 1.2 Bn people and GDP of $2.7 Tn is ranked 6th in the world. The Per Capita Income is $ 1850 and the economy is growing at about 7%. India’s Chemical Imports in Year 2016 were $35Bn & Exports $22Bn. PWH estimates that Indian economy would climb to 3rd largest in the world by year 2030 @ $16 Tn.
With 0.7 Mn Hectares under Pine Forests, Crude Gum tapping at 27,000 Mt in year 2017, valued @ USD 25 Min, has fallen to just 1/3rd level from year 1975, when India was the No. 3 producer in the world. Geographically limited tapping area in the Himalayas, in Northern India, insignificant macro economic impact impact, lack of co-ordinated efforts and little support from the local population, the naturally occurring forests have not been nurtured for a sustainable industry.
The Indian & Nepal Rosin production @ approx. 30,000 Mt & GTO production @ 6000 Mt is dominated by Government factories in Himachal Pradesh with a capacity of 9500 Mt/Year, a private player in Nepal with a capacity of 7000 Mt/year and about 50 small scale units mushroomed near-about the mountainous Pine forests. A number of units near the ports in Western & Southern India are not in production due to non-availability of crude gum.
The industries for application of Gum Rosin and its derivatives ie Paints, Printing Inks, Adhesives, Paper Chemicals, food (ester gums), Tyre & ABS (using Disproportionated Rosin) are growing at 7-10% annually, driven by the government game changer introduction of GST to transform India into a single market & push to affordable housing for all, explosion of e-commerce, requiring huge amounts of packing material and increased demands for personal and commercial vehicles.
The industries for application of Gum Turpentine Oil and its derivatives ie fragrance chemicals, and adhesives are growing at 6 – 12% depending upon the sub-segment
India imports majority of its annual Pine Chemicals requirement of approx. 80,000 Mt composed of 40000 Mt each of Rosin & Gum Turpentine Oil and their derivatives.