India Naphthalene Market to Register Double Digit Growth in Revenues during 2014-19
Growing use of naphthalene in textile products and increasing focus of major industry players towards expanding production base to drive naphthalene market in India
According to the recently published report by TechSci Research, “India Naphthalene Market Forecast and Opportunities, 2019”, naphthalene market in India is expected to register double digit increase at an estimated CAGR of 18.24% in value terms during 2014-19F. In 2013, the overall demand for naphthalene in the country pegged at 82.33 thousand metric tons, and is expected to grow to over 113 thousand metric tons. Major factors that are likely to drive such tremendous growth in the market include growing textile exports, increasing use of naphtha in construction industry and rising production of sulfonated naphthalene formaldehyde (SNF), which is added to construction chemicals.
India ranks second among the leading textile manufacturing countries across the globe. Textile industry accounts for around 4% share in the country’s GDP. Since naphthalene is characterized by properties that can impart as well as remove natural colour from a fabric, naphthalene finds significant use in textile industry in India. In addition, naphthalene is also used for the production of SNF, which is largely used by chemical industry in India within construction chemicals. However, easy availability of alternative ingredients such as Bon acid and xylene poses a challenge to growing naphthalene sales in India. Other small producers like AVH Chemicals, Kedia carbon, etc. are also producing crude naphthalene using raw material i.e. coal tar from SAIL. AVH Chemicals is planning to expand its capacity by the end of third quarter of 2014.
“Since raw material of naphthalene is a by-product of steel industry during the process of making coke, naphthalene market in India completely depends on the scenario prevailing in India’s steel industry. This is the main reason behind the uneven scenario in trade dynamics of the naphthalene in India”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm. “Due to limited manufacturing base in India, the country largely relies on imports from other countries to address the demand for naphthalene in the country” added Mr. Chechi.
“India Naphthalene Market Forecast and Opportunities, 2019” has evaluated the future growth potential of India Naphthalene Market and provided the statistics and information on market structure, industry behaviour and trends. The report includes naphthalene market projections and demand forecasting. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in naphthalene market in India.