How can digitisation reshape the Chemical Industry?


Indeed, in the recent past, the chemical industry has shown continuous growth with increased shipping in international markets. The demand for chemicals is expected to grow further at 9% pa over the next five years. Drawing on this trend, chemical distributors in India may expect an increased ROI in the coming years. India is currently the sixth largest producer of chemicals in the world, and the industry is projected to reach $304 bn by 2025.


Basic chemicals and related products fertilisers, varnishes, pharmaceuticals, etc., constitute a significant part of the Indian economy. Major new capacity is expected in the near future in base chemicals.
Despite the positive signals, some concerns still stand and are gaining strength. With respect to the overall economic picture, the situation of the industry appears to be unhealthy. The chemical companies have to maintain their competitiveness in the world that is becoming globalised and digitalised. The onus is on the chemical companies to explore new ways so that they remain more collaborative and integrated.

The key issue in front of chemical companies is to understand that digital is and will hit the industry. The ‘digital' affects the three prime domains of business.:
  •      The first is functional excellence. Going digital can significantly improve not only the business process but also functional excellence.
  •       The demand patterns in the end market are greatly affected and altered by going digital.
  •     The third is the change in business model by which the companies can create value for their customers.

When the businesses adopt digitisation, they can collaborate with the industry giants more and can remain ahead of the curve. There is a wide list of chemical companies in India that have used digitisation in the initial years, and today, their annual sales have increased by 30-40 percentage points.

The chemical industry is undergoing dynamic growth, and the future also seems optimistic. The key ingredient for success in the coming years is definitely digitisation. If chemical companies do not respond to the changing landscape of the industry, a lack of opportunity and competitive disadvantage will be the result. However, more systematic, comprehensive and specific digital services are needed. The chemical companies can leverage on the internet by appearing on a platform designed specifically for them.


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