The Organic Chemicals Manufacturing Business is essential to the chemical manufacturing sector. It provides and encourages many technological advancements and innovations. The organic chemicals industries also play an essential part in supplying intermediates and chemicals as raw material to other industries, like adhesives, paints, dyestuffs, pharmaceuticals, leather chemicals, alcohol, pesticides, ethanol, turpentine(excluding mineral turpentine)and several organic dyes or pigments.
The major organic chemicals manufactured in India include methanol, formaldehyde, phenol, acetic acid, pyridines, acetic anhydride, alkyl amines and ethyl acetate. Except for India, the other major producers of organic chemicals are the USA, Germany, UK, Japan and China. Countries like Brazil and Chile are trying to increase the production of these essential chemicals.
According to the market analysis of the Indian chemical industry, alkali chemicals have the highest worth occupying the largest market share, estimating 71.9 per cent of the total production from April to July 2021 for the financial year 2022. The production of polymers accounts for approximately 59 per cent of the total production of basic key petrochemicals in 2019. The organic chemicals manufacturing industry is expected to contribute 300 billion US Dollars to India’s Gross Domestic Product by 2025.
The chemicals manufacturing industry in India includes more than 80,000 manufactured products that fall under the category of chemical Industry, with a total market size worth 178 billion US Dollars in 2018-19. The industry is estimated to grow at a Compound Annual Growth Rate (CAGR) of 9.3 per cent to reach 304 billion US Dollars by 2025 on the back of rising demands in the end-user segments for speciality chemicals and petrochemicals. The speciality chemicals sector is expected to reach 40 billion US Dollars by 2025.
Organic Chemicals Manufacturing Industry
Compound Annual Growth Rate
Ortho nitro toluene
18.99 per cent
16.44 per cent
10.22 per cent
9.86 per cent
8.9 per cent
7.24 per cent
6.25 per cent
5.17 per cent
5.11 per cent
3.27 per cent
2.21 per cent
The three main classifications for the chemical industry are: –
Organic Chemicals Manufacturing Business has to file for environmental compliances governed by the Ministry of Environment, Forest and Climate Change (MoEF) to receive government incentives and fulfil their responsibilities mandated by the rules and the authorities.
CTE (Consent to Establish) is obtained by the owner of the Organic Chemicals Manufacturing Business before the plant is established. CTO (Consent to Operate) is obtained by the owner after the plant is established and is ready to start the industrial process.
The authorisation/certification process for both the Consent Certificates (Consent to Establish and Consent to Operate) is set under the Air and Water (Prevention and Control of Pollution) Acts. Moreover, the certification process for both certificates is similar. The registration application is submitted online with the required documents by the respective Union Territory Pollution Control Committee (PCC) or any State Pollution Control Board (SPCB) website. This is followed by a though examination of an application form. Upon inspection of the documents, the consent certificate is granted.
Note: – Once the additional documents are examined, in the case of Consent to Operate, an authorised government official of state authorities conducts a site inspection and makes the report accordingly. Upon inspection report, the Consent to Operate is granted.
Documents required for Consent to Establish
According to the Air and Water (Prevention and Control of Pollution) Acts, for acquiring CTE from the SPCB/PCC for Organic Chemicals Manufacturing Business, the business owner has to submit the relevant documents like: –
Documents required under Consent to Operate
For acquiring Consent to Operate from the SPCB/PCC for Organic Chemicals Manufacturing Business, one has to submit the following documents:-
The registration relating to the establishment or transboundary or cross-country movement of hazardous waste that includes the establishment of Organic Chemicals Manufacturing Business is regulated under The Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2015. For authorisation, the owner must apply under Form 1 to the concerned SPCB to acquire the authorisation.
Documents required for Hazardous Waste Authorisation
The documents that are to be submitted mandatorily while applying for hazardous waste authorisation are: –
The manufacturer must acquire specific mandatory licenses to set up any business. Similarly, the Organic Chemicals Manufacturing Businessowner has to acquire general licenses and authorisation from the concerned governmental authorities. Some of these licenses are: –
Documents required for establishing the company
To obtain MSME (Micro, Small and Medium Enterprise) registration, the owner of Organic Chemicals Manufacturing Business has to register through the centralised online portal of the Ministry of Micro, Small and Medium Enterprise. Subsequently, the owner must upload the mandated documents.
Documents needed for MSME registration
Organic Chemicals Manufacturing Business owners must list their business under Factories Act to institute their manufacturing units. According to the Act, business owners are mandated to get a Factory license, which the Chief Inspector of the Labour Commissioner Organisation approves after examining the site.
Documents needed by Organic Chemicals Manufacturing Business
To get a Factory license for Organic Chemicals Manufacturing Business, the documents required are: –
Import and Export Code / IEC is the personalised ten-digit code. It is required for every exporter and importer in the country.IEC is authorised by the Director-General of Foreign Trade (DGFT) of The Ministry of Commerce. One of the significant features of this code is that it requires a one-time authorisation and does not need new registration or renewal.
The application for authorisation for the Import Export Code is submitted online with the required documents (Digital Signature Certificate) DSC and Bank Details. The authorities then check these, after which the code is authorised in soft copy for import or export by Organic Chemicals Manufacturing Business.
The Ministry of Commerce mandates the following documents for an IEC registration –
Granted by the Local Municipality Authority, the fire No objection Certificate is mandatory for Organic Chemicals Manufacturing Business. The state government regulates the NOC. This involves the process of applying with the mandated documents. These are then forwarded to the Chief Officer of the Fire Service Department, who further inspects the manufacturing site. After the inspection, the report is framed and submitted to the department, which grants a No Objection Certificate (NOC) on further examination.
Documents required for fire NOC for Organic Chemicals Manufacturing Business
Document required for GST certificate for establishing Organic Chemicals Manufacturing Business
Municipal Corporation grants a trade license for Organic Chemicals Manufacturing Business. The grant of this license depends on the rules and regulations set by the state. The documents required for Trade licenses are submitted along with the application.
Documents required for trade license Organic Chemicals Manufacturing Business
Organic Chemicals Manufacturing Business in India contributes mainly to the Chemical Industries in the country. India ranks among the top countries having the most significant production unit for Organic Chemical Manufacturing. As mentioned before, according to many Market Analysis Reports, the industry is projected to grow at a CAGR (Compound Annual Growth Rate) of 9.3 per cent to reach 304 billion US Dollars by the year 2025 on the back of increasing demand in the end-user part for speciality chemicals and petrochemicals. The speciality chemicals sector is expected to reach 40 billion US Dollars by 2025.