PRESENTATION BY ANAND LADSARIYA CHAIRMAN CHEMEXCIL Basic Chemicals

PRESENTATION BY ANAND LADSARIYA CHAIRMAN CHEMEXCIL Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (Set-up by Ministry of Commerce & Industry, Government of India) 29 -09 -2009 MOSCOW, RUSSIA

q . BASIC CHEMICALS, PHARMACEUTICALS & COSMETICS EXPORT PROMOTION COUNCIL POPULARLY KNOWN AS CHEMEXCIL WAS SET UP BY THE MINISTRY OF COMMERCE, GOVT. OF INDIA IN 1963. CHEMEXCIL HAS FOUR SEPARATE PANELS, THESE PANELS ARE : PANEL- I : Dyes & Dye Intermediates PANEL-II : Basic Inorganic & Organic Chemicals including Agro Chemicals, Pesticides PANEL-III : Cosmetics, Toiletries, Essential Oils. PANEL- IV : Agarbattis & Castor Oil

For overseas Buyers: Ø Locates an appropriate supplier Ø Organizes Reverse Buyer Seller meets Ø Provides up to date market information Ø Host related services

For MEMBER EXPORTERS: Ø Assists in identifying potential markets Ø Assists in overcoming export constraints & operational bottlenecks Ø Provides publicity and marketing back up. Ø Undertakes direct export promotions such as Sponsoring sales tours abroad and overseas delegations from different industries. Ø Participating in exhibitions Ø Acts as an interface between Chemical industry & Government Deptts.

World Chemical Exports by Ma. Region (2007) (Value: $Bn) World Total Exports is US$ 1483 Bn

WHY RUSSIA ? Russia is the main producer of oil and gas. It can be a major supplier of feedstock to Indian chemical industry Together they can set up petrochemical parks.

Leading Exporters of Chemicals (2007) Rank Country / Entity Value $bn 1 EU-27 813. 1 2 USA 154. 4 3 Japan 66. 2 4 China (PRC) 60. 3 5 Switzerland 59. 3 6 Republic of Korea 37. 5 7 Canada 34. 7 8 Singapore 33. 7 9 Taipei Chinese 28. 1 10 Russian Federation 18. 4 11 India 16. 3 12. Saudi Arabia 14. 3 Above Total 1336. 3 World Total 1483. 0

ADVANTAGE INDIA FOR JOINT VENTURES Fourth largest Economy (PPP) - A safe place to do business Largest reservoir of skilled manpower Long-term sustainable Competitive advantage - High growth rate economy Largest democracy – political stability & consensus on reforms Liberal & transparent investment policies Tenth most industrialized country in the world Second Largest Emerging Market 8

STATUS OF THE CHEMICAL INDUSTRY Ø An important constituent of Indian economy with size of USD 35 billion (equivalent to 3% of India’s GDP) Ø Total investment – approx. USD 60 billion Ø Employment generated – approx. 1 million Ø Accounts for 14% of total exports and 9% of total imports Ø In terms of volume 12 th largest in world and 3 rd largest in Asia Ø Per capita consumption of chemicals in India is 1/10 th of World average Ø Growth expected to be 5 7% per annum

CHEMEXCIL’S EXPORT PERFORMANCE (US$ in million) Group 2005 -06 2006 -07 2007 -08 Dyes and Dye Intermediates 1659 2326 2715 Inorganic, Organic & Agro chemicals 1997 2150 2750 Cosmetics & Toiletries, Essential oil & Agarbattis 501 566 683 Castor oil 214 242 319 4371 5284 6467 Total Rate of exchange US$=Rs. 44/-(2005 -06), Rs. 45/-(2006 -07) and Rs. 40/-(2007 -08)

CHEMEXCIL’S COMMODITYWISE EXPORTS TO RUSSIA (Rs. in Million) Group 2005 -06 2006 -07 2007 -08 Dyes and Dye Intermediates 435. 1 550. 0 536. 6 Inorganic, Organic & Agro chemicals 242. 0 327. 2 388. 3 Cosmetics & Toiletries, Essential oil & Agarbattis 222. 8 269. 2 296. 4 Castor oil 103. 9 90. 4 116. 3 1003. 8 1236. 8 1337. 6 Total

INDIACHEM GUJARAT 2009 Keeping in mind that the year 2008 had declared as “Year of Russia in India”, the Council had organized CHEMICAL MEET 2008 in March 2008 and invited very prestigious buyers/traders from Russia, Tajikistan, Uzbekistan, Turkmenistan, Kazakhstan of Dyes and Cosmetics. There were 12 prestigious buyers / traders from Russia. This year also in addition to the INDIAN CHEMICAL Exhibition coinciding with INDIA SHOW 2009 at St. Petersburg, CHEMEXCIL is holding a Reverse Buyer-Seller Meet from 12 th 14 th December, 2009 in Ahmedabad, Gujarat, India to coincide with INDIACHEM Gujarat 2009