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John W. King is general manager of Chem Systems offices in the Indian subcontinent. King has over 17 years of international experience within the petrochemical and chemical industries having worked and lived in Europe, America and India. He has a ES in chemical engineers from the University of Missouri and an MBA from the London Business School.
International petrochemical producers view India as a major potential market. Middle Fast producers in particular have the combined advantages, relative to other regional producers, of very favorable feedstock costs and good logistics to serve the Indian market.
This article reviews the opportunities within the Indian petrochemical industry and suggests measures for industry evolution based on core competencies of those foreign producers interested in carving out a position in the Indian petrochemical industry.
Active participation in the historically high-growth markets of East Asia has been sought after and achieved by many global petrochemical producers. They focused on such Asian countries as China, Thailand, Malaysia, Indonesia, and others for growth.
Although the strong fundamentals which led to the historic growth of Fast Asia will, in the opinion of Chem Systems, re-emerge in the medium-to-longer term, many international organizations are more seriously evaluating opportunities in India. Global players have historically focused on East Asia with India being widely neglected. As growth in demand for many sectors of the chemical industry within India becomes more visible and understood, strategies of indigenous organizations will evolve, especially in light of the entry of more global players with various initiatives to capture a piece of the action.
This, obviously, has not been by accident. Aside from the high growth experienced by East Asian countries prior to the current crisis, significant barriers, historically, have existed in India that have hindered progressive market evolution and discouraged growth in demand.
The Indian situation has changed in a massive way in a very short time. India will, in the short, medium, and longer term, become more prominent.
Opening of opportunity
India has emerged as a strategic target for many global corporations. The country has long been recognized as one of the world's largest potential markets, and has the added attraction of a well-established, western-orientated legal system and business framework to which many multinational organizations can relate. However, barriers have historically …