Strong Growth of the Chemical industry

According to reports of the Indian chlor-alkali manufacturers association, the Indian alkali industry has witnessed healthy growth in recent years. Caustic soda production grew at an annual average rate of 7%, and soda ash production grew at 3% annually over the past five years. The industry continues to invest and to add capacity to keep pace with growing demand. The annual caustic soda production capacity in the country will increase from approx. 5.6 million tonnes to 7.7 million tones in the next 5 years. Soda ash capacity will grow from currently 4.4 million tonnes to 5.7 million tonnes in the next 5 years. Assuming 80% capacity utilisation, the additional capacity is equivalent to a 4.5 million tonnes salt consumption increase. 

Growth Expectations Across all Important Demand Segments

Consumption growth will also occur in all other large scale uses in the industry, food, and agricultural . 

Future Capacity Growth and Challenges

The country is self-sufficient for its salt supply, and in addition has exported over 10 million tonnes of salt annually in past years. Indian producers can further increase production volumes by increasing the yield of many of the solar salt plants. The growth target for the next years is 8% which would not only be sufficient to satisfy captive demand, but also allow to increase exports.

Variations in patterns of climate have in past years brought un-seasonal rains, and frequent cyclones. These weather events decreased salt production volumes drastically. It remains to be seen if the layout of salt plants can be modified to avoid drastic production losses, and allow for a constant increase of production volumes in the future.


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