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Will India dominate caustic soda capacity additions in 2025

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Caustic soda properties

Sodium Hydroxide (NaOH), also known as Caustic Soda, is widely used in a variety of industries, including pulp and paper, organic and inorganic chemicals, soap detergents, alumina, dyes and inks, textiles, pesticides, and pharmaceuticals. It is a highly sought-after product in India, allowing it to propel market expansion.

The installed capacity of caustic soda in the country is about 4.76 million MTPA as of March 2022. The total installed capacity of 4.76 million MTPA is based on Membrane Cell Technology. The Membrane Cell process is energy efficient, as the power requirement is much less, in the range of 2150-2200 kwh/MT as compared to Mercury Cell’s 3150-3300 kwh/MT. Between the years 2022 and 2027, a CAGR of more than 1% is anticipated in the market. Shriram Alkali & Chemicals Bharuch Caustic Soda Plant, Kutch Chemical Industries Gandhidham Caustic Soda Plant, MFL Caustic soda plant, DCM Shriram’s Caustic Soda Plant, Grasim Industries Caustic Soda Plant are the most productive of the bunch.

India is abundant in caustic soda production volumes with most of the plants operating at around 80-85% efficiency. However, the increase in cheaper imports has forced domestic manufacturers to curtail their margins which was predominantly because of the high input and logistics costs involved within the country.

Major end-use industries of Indian caustic soda are chemical industries, textile, alumina, pulp & paper, soap & detergent, and others. The vital locations are Asia, Europe, the Previous Soviet Association, the Center East, North America, South America, Oceania, and Africa. Asia leads with the biggest limit commitment worldwide throughout the following five years, trailed by North America and Europe. Over 75.5% of the world’s caustic soda capacity is held by China, the United States, India, Germany, and Japan.

Prominent Trends in The Caustic Soda Industry

  • The demand for caustic soda in India is being influenced by a number of important trends.
  • The increasing use of caustic soda in industries like pharmaceuticals, pulp and paper production, and soaps and detergents is one such significant trend. Applications in enterprises like staple fiber creation and petrol refining have additionally seen consistent development. It is anticipated that the demand for caustic soda will continue to rise as these industries expand.
  • Another critical pattern is the increasing popularity of casutic soda in the alumina area.
  • One of the most important chemicals used to make alumina, which is then used to make aluminum, is caustic soda.

India’s Caustic Soda Market is Expected to Ascend

India’s Caustic Soda market is expected to grow significantly. The future outlook for caustic soda production and consumption in India for 2023-24 is promising, with a projected CAGR of 5.50% between 2023 and 2027, reaching 4.92 million metric tons—a remarkable growth trajectory in a market that is already dominated and saturated.

The way forward

Not only is it anticipated that the expansion of India’s alkali chemical industry will result in a significant increase in demand for caustic soda, but it will also increase employment opportunities and the economy of the country. Moreover, the development of these enterprises will add to the country’s general monetary development and reinforce India’s position as a main player in the worldwide scathing soft drink market.

 

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