India's chemical companies are undergoing a strategic transformation to be an integral part of global supply chains

Dr Satish Wagh, Chairman, CHEMEXCIL, and founder, Supriya Lifescience, discusses how the COVID-19 pandemic prompted Indian chemical exporters to rethink sourcing strategies, build domestic capacities, and embrace quality standards. He also shares insights on export trends, FTA utilisation, digital transformation, and policy recommendations for long-term sector resilience, in an interview with Viveka Roychowdury. Edited excerpts below...

- Dr Satish Wagh, Chairman, CHEMEXCIL, and founder, Supriya Lifescience

Dr Wagh, as Chairman, CHEMEXCIL, and as the interface between government and industry, what are the learnings from the COVID era that have been incorporated by member-exporters connected to the pharma and life sciences sector?

The COVID-19 pandemic exposed vulnerabilities and offered important lessons for Indian chemical companies, shaping strategies to build resilience and competitiveness.

As a CHEMEXCIL chairman I have interacted with various sector companies. Heavy reliance on China for raw materials of key inputs led to shortages during lockdowns. Indian companies learned to diversify sourcing to countries like South Korea, Japan, and Europe, and prioritise local suppliers to overcome geopolitical and logistical risks.

Most Indian chemical and pharma companies rapidly expanded their inventory, stock, etc. Large scale manufacturing companies accelerated efforts to produce key inputs locally, reducing import dependency and ensuring supply stability.

IPA (isopropyl alcohol) shortages during the pandemic highlighted India’s over-reliance on Chinese imports. It is sad to mention that some of the Indian companies manufacturing IPA are creating a monopolistic situation by insisting that the department put anti-dumping duty on imports of IPA from China.

During COVID pandemic domestic companies inflated the cost of IPA and controlled the supply that ultimately burdened consumers. In fact, IPA prices in India had surged from ?65/kg to ?190/kg, (during March 2024).

As a CHEMEXCIL chairman I took the lead and strongly opposed the proposed imposition of anti-dumping duties on imports of IPA originating from China due to its potentially adverse consequences.

I appreciate the call for BIS standards which are important for domestic/pharma-grade material.