Best 20 Profitable Business Ideas For Chemical (Daily Earn 200$)

The chemical industry is one of the most important industries in India. According to ASSOCHAM, Chemicals and allied sectors are an integral part of the Indian Economy. Best 20 Profitable Business Ideas For Chemical (Daily Earn 200$)

It contributes around 10% to India’s Gross Domestic Product (GDP) (6% comes from Basic chemicals & 4% comes from Organic Fine Chemicals). It also accounts for nearly one-tenth of the total exports of the country.

The Indian Chemicals Industry is expected to reach US$ 165 billion by 2020 from its present size of US$ 100 billion (based on 2006 estimates). India accounts for 60% share in the world’s chemical trade and 40% share in the world’s pharmaceutical exports. The Indian Chemical Industry accounts for 29% of total Indian manufacturing sector output.

The chemicals are used in industries like pharmaceutical, metallurgical, automobile, textile, paints & varnishes, etc. The Indian chemical industry is poised to grow steadily at a growth rate of more than 9% annually over the next few years on account of higher investments by private players, availability of raw materials, and competitive labor cost.

Best 20 Profitable Business Ideas For Chemical

1 Perfume Making:

The market for perfumes and fragrances in India is estimated to be worth Rs.35,000 crores and growing at a compounded annual growth rate (CAGR) of 8-10% year on year. The industry is fragmented with more than 20,000 distributors and wholesalers, 30 large organized companies with a presence in more than 250 locations, and more than 100 large and small manufacturers.

2 Essential Oil:

Essential oils are the purest form of concentrated aromatic essences extracted from plants, flowers, trees, etc. It is used in perfumes and the cosmetics industry. The global essential oil market was estimated at $6 billion (approximately Rs. 24,000 crores) in the year 2006 and is expected to reach $9 billion (Rs. 36,000 crores) by 2012 growing at a CAGR of 7-8%. India is one of the largest producers and exporters of essential oils accounting for nearly 40% share in the world’s production and exports.

3 Fragrance:

Perfume fragrance products or sprays fall under the category of toiletries or personal care industry. The market for fragrance in India is estimated to be worth Rs.75,000 crores and growing at a CAGR of 7-8% year on year.

With the entry of International FMCG majors like L’Oreal, Procter & Gamble, Colgate Palmolive, etc., the competition is increasing by the day which has resulted in higher investment by these companies into advertising their products.

4 Chemical Manufacturing:

India ranks third in the world production of chemicals with an approximate share of 5-6%. It exports around 11% of chemical products worth US$ 9 billion annually to nearly 60 countries across the globe.

The Indian chemical industry accounts for 29% of total Indian manufacturing sector output. There are about 5,000 large-scale manufacturing units in the country, which are growing at a CAGR of more than 11%.

5 Pharmaceuticals Chemicals Exports:

India turns out to be the 7th largest pharmaceutical chemicals exporter with nearly 6% market share in this arena. The Indian Pharmaceutical industry is the fourth-largest producer of bulk drugs and formulations in the world, behind the US, Japan, and Germany. India’s global market share has reached the second position overtaking Japan by 2003-2004. Indian exports have also doubled over the last five years from US$ 4 billion to around US$ 9 billion. It is expected that within three years its exports will touch the US$ 20 billion mark.

6 Petroleum Chemicals:

The Indian Petroleum chemicals market size is estimated at Rs.700 crores (US$ 190 million). The import of petroleum chemicals stands at US$ 100 million (Rs.400 crores). India exports around 20% share of this market to more than 25 countries, with West Asia being the most important destination for these products.

7 Coal Tar & Pitch:

Coal tar and pitch are used as additives in the production of dyes, resins, pharmaceuticals, antioxidants, etc. Coal tar-based products are commonly used as chemical intermediates by industries engaged in manufacturing dyestuff, phenol & acrylic acid, naphthalene derivatives, etc., whereas coal pitch oil is mainly employed as a lubricant base and as a replacement for petroleum and synthetic cutting oils.

8 Specialty Chemicals:

The specialty chemicals market is estimated at US$ 500 million (Rs.2,000 Crore). The growth of specialty chemicals has been steady over the last few years due to the increasing acceptance of new products by major industries, low-cost manufacturing processes, es and a wide range of applications. The Indian science and technology base in these areas is growing with the development of specialties used in the Pharmaceutical, agrochemical & petrochemical sectors; food processing industry, etc.

Apart from these India also produces a huge amount of chemical intermediates which are mostly consumed internally

9 Nail Polish Making:

Chemical Industry India Ltd. has set up a plant for the manufacturing of nail polish which is approved by the National Accreditation Board for Testing and Calibration Laboratories (NABL) and Food and Drugs Administration (FDA). NAIL POLISH: Chemical Industry Ltd. has established its unit with a capacity of 100 MT per annum at Aurangabad in Maharashtra state to manufacture Nail Polish as an additional business vertical.

The company plans to expand this capacity to 1,000 MT per year within the next three years. In addition, it also initiated the process of establishing a unit at Dahej port near Bharuch in Gujarat state aiming annual production of 40,000 MT per year from its proposed site. The company entered into a consultancy agreement with P.K.Ganguly Consultant Pvt Ltd., Kolkata for setting up the project which will be executed on an EPC basis.

10 Rubber Chemicals:

A well-known supplier of rubber-based chemicals in India is “RUBYCHEM” which is a leader in adhesives, emulsion, paint, and rollers. As part of their expansion program, they have recently acquired Kanpur-based chemical factory ‘ETN’ to strengthen its presence across the country . The company has also undertaken a major capacity expansion plan to achieve an annual turnover of Rs 2Cr by 2010 (Rs 100cr at present) with the development of new products like car tire care chemicals etc; it is currently setting up production facilities at its Ahmadabad and Bangalore based plants.

11 Corrosion Inhibitors:

A new entrant is “CALVERTON CHEMICAL INDUSTRIES INDIA LTD” and they plan to set up a plant for manufacturing corrosion inhibitors in India by the end of 2010. The company is developing technology from Mitsubishi corporation Japan and plans to produce specialized corrosion inhibitor formulations with low VOCs contents considering green environment regulations in near future.

The company has approximately 25% share of the global market for these products. In addition, it will also manufacture recycled oil which can be used as fuel, kerosene, or residue after distillation for use in industries including petrochemical refineries, etc.

12 Liquid Soap Making:

Alliance Combustion & Chemical Ltd. has set up a plant in Maharashtra state for manufacturing liquid soap at Aurangabad. The company is using the latest technology to develop products meeting international quality standards. The company also manufactures other basic chemicals like formaldehyde, sulphuric acid, India.

13 Food Additives:

Dow Chemicals has recently entered into a partnership with Abbot Laboratories which would be producing food additives in a joint venture Company named CYANAMID INDIA LIMITED. This is coming as a boon for India since this product will help farmers to grow healthy high yielding crops through effective use of fertilizers. (Source Dow Chemicals)

14 Water Treatment Chemicals:

Nalco Water Solutions Limited (NWS), a wholly-owned subsidiary of Nalco Holding Company (NHC), is the world’s leading provider of water treatment solutions and technologies.

The company has recently acquired local Indian companies ‘ELEMENTAL INDIA LTD’ and ‘EGL INDIA LTD’. The company plans to set up water treatment plants in Bangalore, Chennai & Cochin by 2011. It would be starting with the manufacturing of iron oxide coagulants / ferric chloride / ferrous sulfate for removing impurities like color from wastewater as part of its expansion program.

Now it is establishing additional units in Kolkata, Hyderabad, Noida, Indore & Bhopal which are expected to come into production by 2011-12 under public-private partnership pacts. The company also plans to enter into the agrochemicals business in the near future by enhancing the capacity of existing units in Chennai & Hyderabad.

15 Agrochemicals:

Monsanto India is currently setting up its new campus in Bangalore with an investment of Rs 800 crore for the manufacture of agrochemicals. This will be its second manufacturing facility after Gurgaon which was set up a couple of years back.

In addition, Monsanto signed a memorandum of understanding (MoU) with Indian Farmers Fertiliser Cooperative Limited (IFFCO) to establish a strategic partnership for the production and marketing of non-genetically modified pure natural cotton seed germplasm. The company has already established a presence in the seeds market with a turnover of Rs. 640 crore (even though it is a newcomer). The company has also entered into a 50:50 joint venture with US-based global crop protection company, Solutia Inc.,

and created another wholly-owned Indian subsidiary ‘Monsanto India Limited’. This subsidiary would be involved in the development and sale of seed business apart from other Agri products lines like growth regulators for fruits crops etc..(Source Monsanto)

16 Neem Oil Extraction:

Neem oil extracted from the seeds of neem is extracted by crushing seeds of Neem in the solvent extraction process. The product is used as pesticide, pesticide for organic farming, and insecticide. In India Neem is grown largely in Madhya Pradesh, Maharashtra, Orissa, Rajasthan, and Andhra Pradesh were plenty of its plantation exists.

16 Vetchem:

Vetches is a group company that has been instrumental in developing medicines & chemicals that are critical to modern veterinary medical practice. It works along with other big names of international markets like Bayer Health Care AG Germany, Merck&Co., Inc US, Ceva Sante Animale France, etc. In addition, it also exports its products to 60 countries.

16 Hydrochloric Acid:

The company has also entered into an agreement with Monsanto to produce hydrochloric acid (HCI). This product is used as raw material in formulating several chemicals like pesticides, herbicides, plant growth regulators, etc. Apart from this, it can also be used in the production of polyvinyl alcohol which is again used as adhesive for plywood manufacturing.18 Water Treatment Plant:

Dow Water & Process Solutions (DWPS) was formed through the merger of Rohm and Haas Company’s Water Technology Division and Dow Chemical Company’s Water Technologies Businesses. The company provides both original equipment manufacturer (OEM) and aftermarket support via its two business lines-water treatment solutions and process solutions.

17 Solar Battery:

The company has also entered into an agreement to construct a solar-based power generation plant at the ‘Green Power Park’ in Bangalore. The park is promoted by Karnataka Renewable Energy Development Ltd.19

18 Water Purification:

Honeywell India Pvt Ltd, a subsidiary of Honeywell International Inc., USA, and one of the leading global suppliers of products and services for building automation and control systems, environmental controls, turbochargers, and other key components for various industries.

It provides Automated Building Management Systems that include a complete range of building automation solutions. It has set up manufacturing facilities at Dombivli (Mumbai) & Hyderabad which supplies products to OEMs like M/S Philips Electronics, M/S Johnson Controls India Pvt Ltd, Coca-Cola, McDowell & Company, Indian Oil Corporation, etc. (Source Honeywell)

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19 Glass Manufacturing:

Hindustan National Glass & Industries Ltd is a public limited company that was incorporated in 1984 with the objective of manufacturing bottles and containers out of glass for packing applications in various sectors . It has 20% stake in Sanraku Asahi Kagaku Co.,Ltd.

The company’s products include green glass bottles, colored glass bottles, pharmaceutical glass vials, amber bottles, food-grade high jars, wine bottles, beer bottles, etc.20 Dhoop Manufacturing: Dhoop Making Unit which is owned by Bina Kakram Sai Pvt Ltd located at Dhakuria, Kolkata. The core business of the company is to manufacture Dhoop sticks using Indian exotic trees like neem, Kadam, etc.

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20 Pharmaceutical Sector:

Forbes & Company Ltd. is listed in Bombay stock exchange (BSE) and National Stock Exchange (NSE). It manufactures specialty chemicals like insulin, anti-retroviral drugs, an antibody for cancer treatment, veterinary pharmaceuticals, antibiotics & engineering chemicals. Its major customers are pharmaceutical companies like Cadila Healthcare Ltd., Wockhardt India Ltd., Cipla Ltd., Lupin Laboratories Ltd.

Best 20 Profitable Business Ideas For Chemical

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Best 20 Profitable Business Ideas For Chemical
Best 20 Profitable Business Ideas For Chemical

Is Chemical business profitable?

Yes. Chemical business is profitable provided that it does not involve chemical hazardous which are very dangerous, expensive and has strict rules in manufacturing, transporting, storage and usage. The profitable chemical business would be the one that works with chemical products or components that are easily available in local markets or low-cost/low-value chemicals. For example, you might want to research the chemicals in your local market, what they are selling, and what kind of price they are selling.

What color has higher demand?

Colour chemical is profitable but it would be better if you can find a niche market that only requires a specific color. For example, if you want to enter into the textile dyeing business try to do research on which color is in high demand at the moment and start producing that specific color.

What about chemicals for agriculture?

Chemical for agriculture is profitable but it would be better if you can find a niche market that only requires a specific chemical. For example, there are many types of fertilizer however, not all of them are popular so you might want to research first on what kind of chemical is in high demand or you can read the comments people left about a specific fertilizer.

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