There are few traditional challenges and problems that are unique to the chemical manufacturing industry.
Challenges facing chemical manufacturer
Shortage and shortage of raw materials:
Organic and inorganic chemical industries, even special chemical industries, often need raw materials difficult to obtain, in the market can not obtain the required quantity. Besides raw materials, treated water is also the basic requirement of chemical industry. The shortage of water treatment plants makes the situation more and more difficult.
Compared with the Middle East, China and other Southeast Asian countries, naphtha and natural gas and other major raw materials have very high prices in the Indian market. The case has made India’s chemical industry uncompetitive in the global market.
Easy to bear imported materials:
One of the most important challenges for Indian chemical manufacturers and suppliers is the lack of expertise to import cheap chemicals.
The government has made a number of efforts to eliminate tax and other regulatory barriers that impede the import of large quantities of chemicals into India. This led to an improvement in the import of a number of chemicals at cheap prices available in the global market.
The lack of necessary audit of regulatory quality due to the transparency of the blockade leads to the increase in the number of products recalled from the market, which leads to considerable problems.
Remote industrial location, insufficient infrastructure:
India’s vast chemical industry is located on the West most coast of India, Gujarat. Market statistics show that the largest consumer of chemical products is in eastern and southern India.
This event led to a sharp increase in the price of logistics transportation, which affected the cost of chemical products. The complexity of infrastructure, such as the lack of adequate port facilities, poor pipeline connections, inadequate power supply, abnormal conditions of the railway system, and the instability of the transport system, challenges chemical manufacturers in obtaining raw materials from suppliers across the country.
The problems of compliance with laws and regulations and high tax rates:
We often find that tariffs on many raw materials exceed those on chemical products and supplies. This situation has caused great damage to the manufacturing industry of Indian chemical industry.
The case prevented the import of a range of raw materials, which were subject to high taxes. It will only promote the import of similar chemicals and raw materials, which have more relaxed tax regulations. This situation will also lead to further price differences.
Key takeout
These are undoubtedly the biggest challenges facing chemical manufacturers, especially in India.
Shanti inorgachem is one of India’s leading chemical suppliers, striving to meet these challenges and pursuing better performance.
