India Caustic Soda Market (CAGR of 6.54%) FY2035 - India Caustic Soda Industry Trends, Revenue, and Outlook | ChemAnalyst


According to ChemAnalyst report, “India Caustic Soda Market Analysis: Plant Capacity, Production, Operating Efficiency, Process, Demand & Supply, End-User Industries, Type, Distribution Channel, Regional Demand, 2015-2035”. Caustic Soda market witnessed a demand of around 3.74 million tons in India in FY2021 and it is projected to grow with a healthy CAGR of 6.54% until FY2035 owing to its rising demand to Chemical Industries, Alumina, Soap & Detergents, Paper & Pulp, Textile, Metal Processing & Various Others like Bleach processing, Chemical processing, Petroleum, etc.

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Caustic Soda also known as Sodium Hydroxide appears as a dense Colorless Odorless Liquid or White solid in the form of flakes & pellets. It is Corrosive & toxic in nature & physical contact may lead to irritation. There are mainly three processes to manufacture Caustic soda, namely diaphragm cell, mercury cell and membrane cell processes. At present day, chlor-alkali Caustic soda is produced mainly using membrane cell process because it consumes much less energy as compared to its former processes and is environmentally friendly as there is no release of toxic mercury. To produce Sodium Hydroxide, sodium chloride is used as a raw material. In the Chlor-Alkali process, sodium chloride is converted into sodium hydroxide and chlorine by passing an electric current through the solution. This electro-chemical process is known as electrolysis.

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Electrolysis occurs in reactors that are known as electrolytic cells which comprises of a containment device, and an anode and a cathode through which an electric current is passed to cause the electrolysis to occur. Saturated brine solution is fed to the anode compartment, where electrolysis of the brine takes place. Chlorine is formed at the anode. While sodium ions travel through the semi permeable ion exchanging membrane where it is reacted with hydroxide ions of water and form Sodium Hydroxide also referred as Caustic Soda.

The major advantage of the process is that the selective permeability of membrane allows only specific components to permeate through it with reduced consumption of energy and is toxic free. The quality of Caustic Soda thus produced is finest compared to other processes.

Caustic Soda spans a large number of end user markets such as Soaps & Detergents, Paper & Pulp, Textiles, Chemical industries & Chemical processing. Other uses of Caustic Soda are as an intermediate, reactant, pH regulator, in acidic waste treatment, etc. in chemical industries. Additionally, they are utilized as alkalinity source, antibacterial agent, non-reactive – additive, batteries & stationary items such as Glue sticks, glitter glues, fabric glues, craft glue, spray mounts, stencil sprays, and other adhesives used for primarily craft purposes.

The growing population coupled with rapid urbanization and industrialization along with increased per capita income have prompted improved quality of life thus creating more demands for Caustic Soda for Soaps & detergents, Textiles and Paper & pulp industries. The Industrial revolution and growing demand for metals for Buildings & Constructions and Automobiles, have increased the consumption of Alumina Industry which require Caustic Soda. The alumina industry in metallurgy segment, in which alumina is extracted from bauxite mineral utilize caustic soda as chief component and growing consumption is expected to drive the Indian caustic soda market in the forecasted period. While pulp and paper industry are presently the second leading consuming market for caustic soda.

Regional wise, Western India with its proper Infrastructure, Transportation network, Proximity to West India ports which give easy access to market of Europe and Middle East & Africa holds the largest demand share of the Caustic Soda having consumption of more than 48% in the region. The states of Gujarat & Maharashtra have the largest market share in the region and major industries are concentrated in these regions and growing development projects is driving the market in West region. The consuming Industries such as alumina, paper and textile are growing faster than GDP and expected to add more capacities. The growth in domestic consumption of Alumina, Textile, Paper & Pulp and Soap & Detergent and Government initiatives in ease of doing business in India is allowing manufacturers to increase domestic expansion in capacity of Caustic Soda in India. For Instance, DCM Shriram Consolidated Ltd., have completed their expansion of Kota unit to 190KT in FY20 and production is underway. Gujarat – Nalco Alkalis Chemicals Limited JV have planned to start 270 KT unit in Dahej, Gujarat by FY23. Grasim Industries have started production from their acquired unit in Balabhadrapuram, Andhra Pradesh & first phase of their expansion of caustic soda unit in Rehla, Jharkhand is completed. Meghmani Fine Chem expansion of their unit from 294 KT to 400 KT is due till FY24. Chemfab Alkalis Ltd., Andhra Sugar Ltd. & Tamil Petro Product Ltd. have also planned expansion which will be completed by FY23.

According to ChemAnalyst report, “India Caustic Soda Market Analysis: Plant Capacity, Production, Operating Efficiency, Technology & Process, Demand & Supply, End-User Industries, Distribution Channel, Regional Demand, 2015-2035”, Key players for India Caustic Soda market are Grasim Industries Limited, DCM Shriram Consolidated Limited, Gujarat Alkalies and Chemicals Limited, Reliance Industries Ltd, ChemPlast Sanmar, DCW Limited, Nirma Limited, Meghmani Organics Limited., TGV SRAAC Ltd., Atul Limited, Gujarat Fluorochemicals Ltd., Kutch Chemicals Industries Ltd. (PANOLI Intermediates), Tata Chemicals Ltd., Lords Chloro Alkali Ltd., Century Rayon (Grasim Industries Limited), Durgapur Chemicals Ltd., The Andhra Sugars Ltd, Punjab Alkalies & Chemicals Ltd, Bodal Chemicals (Mawana Sugars Ltd.-Siel Chemical Complex), Chemfab Alkalis Ltd, The Travancore-Cochin Chemicals Ltd., Tamilnadu Petroproducts Limited and Others.

“Caustic Soda is considered as an extremely utilized inorganic chemical compound, which has its applications in vast majority of chemical end-user industries. Hence, it’s wide range of industrial & manufacturing end uses is anticipated to fuel the Indian Caustic Soda market growth in the forecasted period. Rapidly growing industries such as Chemical Industries, Alumina, Soaps & Detergents, Paper & Pulp, Textiles, Metal Processing, and various others are heavily dependent on it. Owing to all these applications of Caustic Soda, a surge in its demand is anticipated to drive its market growth over the forecast period and offer various opportunities for manufacturers & Industrialists to expand their existing capacities and meet the demand – supply gap in future.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst. 

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