How to Start a Chemical Distribution Business: Embracing Diversity for Growth

Almost everything we use today needs chemical products to be manufactured. The main objective behind using chemicals is to enhance the quality of substances. The chemical industry is one of the important industries in the modern world. These are used in most industrial processes and are necessary for other industries as well.

Chemicals Distributor: According to the estimates, in 2013, the chemical sector touched revenues of US $155-160 billion. It is likely to grow further at a rate of 11-12 % in the next 2-3 years, and the chemical industry contributes a GDP ratio of 5- 6%. to the Indian economy. Chemical sales got more than doubled in last 10 years.

There are some chemicals that are used for imparting strength while manufacturing components, while other chemicals are used for finishing. This industry includes Bleaching Powder, Distilled Water, Sodium Hypochlorite, Water Treatment, Fine Chemicals, Liquid Ammonia, Chlorine Bleach, Aluminum Sulphate, Fabric Whitener, Bathroom Sanitizer, Kitchen Sanitizer, Foot Guard Cream, Mould Guard, Odour Killer, Bathing and Laundry Soaps, Self Cleaning Products, Cleaning Solutions and more.

Chemicals And Industries

Other than direct contribution to agriculture, Chemical Industry contributes indirectly to almost every sector of every economy.

Chemicals in Automobile

In manufacturing the engines of automobiles, chemicals compounds are used – from water, grease, engine oil to galvanized auto parts, there is a presence of some kinds of chemicals.

Chemicals in Lightning

Lighting sector is bright because of chemicals. Mercury is used to make light tubes that are widely recognized as one of the favorable lightning solution.

Chemicals in Healthcare

Other than this, mercury gets used in thermometer to check temperature at industrial as well as consumer level. Moreover, pharmaceutical industry wouldn’t be a known recognition without chemicals.

Chemicals in Food and Beverage

Food and beverage industry is also at its boom. Processed food and ready to serve food items are hot selling items.. To keep the food preserved for longer time, various food addictive and preservatives are added while packing them.

Other than these, chemicals cater to other industries too which includes Packaging,Textile, Personal Care Products Industry and so on.

Chemicals and Business

The reasons of increased demand of chemical industry

Growth in end user industries viz foods, construction, automobile, FMCG, etc, along with agriculture, Increasing per capita income, are strong demand drivers for the three segments of the chemical industry in India.

India: An attractive destination to invest

India’s per capita chemical consumption is approximately 1/10th of the world’s average which indicates the high domestic demand potential and making it captivating for global players to make their presence here.

Shining names in the chemical biz

• IFB Agro
• BASF
• Tata Chemicals
• Kashyap Industries

 

Start your own chemical manufacturing business

Starting a chemical manufacturing business needs huge amount of investment. It involves large and capital-intensive construction, the purchase of expensive equipment, and the hiring of different kinds of professionals.

Taking chemical products distributorship

Chemical business offers profit-making business opportunity for those aspiring entrepreneurs who are interested in distribution concept. Those having good network developed with chemical manufacturers and have a strong knowledge about the product can enter this arena.

We have countless business opportunities for you. Just a click and you are ready to enter into this roaring sector.

Indian chemical industry is one of the long-established sectors of the country, which has played an essential role in the country’s economic development. This sector is a part of one of the crucial goods industry and serves as a critical input for industrial and agricultural development.

In the field of industrial and agricultural development in India, the chemical industry has given an immense contribution. It is one of the oldest industries in India with most diversified segments that includes basic chemicals and its products such as petrochemicals, gases, paints, fertilizers, pharmaceuticals, dyes, etc. Petrochemicals, synthetic fibers, pharmaceuticals, fertilizers, and pesticides constitute over 85% of the market. The rest 15% comprises a wide range of chemical intermediate and industrial or specialty chemicals which have a market of over Rs 230 billion (counting imports of about Rs 15 billion).

The industry is sure to experience a robust in future as its business growth volumes have been predicted to be more than double in 2035 than what it is now. United Nations Industrial Development Organization (UNIDO) has admitted that the Indian chemical industry has witnessed powerful growth in the erstwhile decade and has been rated 6th largest in the world and 3rd greatest in Asia. It is predicted to register a growth of 8-9% in the next decade and increase its share twice in the global chemical industry to 5-6% by 2021, which gives an indication of its importance in the country’s industrial growth.

The government has made 100% FDI admissible and has De-licensed most chemical products excluding those that are hazardous in nature to attract investments in this sector. Due to consistent and rising investment; this sector has proved to be an investment-friendly zone. In order to ensure the development of the country as a major chemical hub, the government has set up petroleum, chemicals, and petrochemical investment regions (PCPIR). These regions guide investors for building manufacturing facilities for domestic and export-led production of petroleum, chemicals, and petrochemicals.

India is coming forth as an emerging economy with huge growth rates and heavy domestic & International demand for chemicals. The Indian Chemical Industry will soon be one of the most profitable industries to invest in, in the coming years. Distributors who are looking to establish themselves and gain a foothold in this domain, should definitely invest in this industry without further ado.

The fragmented Chemical industry is known for its low priced and high quality products. Being the building block of many other industries like agriculture, plastics, automotive, medical, food and so on. It’s a moneymaking business to put your feet into.

According to the report, the global chemical distribution market is growing on rapid pace every year and distributors in this industry are growing faster than the other industries due to 2 main reasons:

1. The value-added services offered by distributors

2. Increased outsourcing among suppliers

Both factors are unlikely to change for the predictable future.

Overall, the chemical industry is diverse with more than 1,00,000 products and also the large customer base of this industry products varies widely. If you are in opinion to appoint distributor for your chemical industry, you have to be extra careful at every step. While hiring a distributor for your products, you are required to look out for all the company related details.

How do I choose the best Chemical Distributor?

Before offering chemical distributorship opportunities, consider the following factors- Check the company’s license and Information

Go for chemical companies with IS0-9001, OHSAS or ISO-14001 certification. Because if the company has a license, it will only supply the best quality and reliable products. Find out whether the company manufactures its own products, only distributes products from other suppliers, or does both. If it is in both, it would be better, as you get customized packaging and good pricing ranges.

Know how much experience the distributor has

Figure out how experienced the distributor is and his reputation in the market. As it will help in getting you assured about the quality of service the company delivers. The higher the number of active years, the more it would be beneficial to you.

Check the company’s client list

Check the company’s clientele list and the credentials of the parent company, as no renowned company will lend financial support to any fraudulent distributor.

Have a deep check on the client’s feedback

Observing clients responses is indeed a great way to observe. Check for existing clients feedback and by the current clientele as well. This will give you a rough idea of the service of the company.

Challenges while Searching Distributors

Choosing a distribution partner is not a simple task. Companies that are looking for distributors have to face a few challenges, Check out:chemical

1. Finding and Setting up a distribution channel
2. Searching verified distributors in relevant product category
3. Getting distributors having knowledge about your products
4. Unable to search distributors in non-operative areas
5. Looking for cost-effective solution to find distributors

But here, you can find experienced and dedicated distributors in just a single click. Start finding now.

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