Presentation by Dr. Jörg Strassburger at the 10th India Chemical Outlook Conference in Mumbai
European chemical companies suffered over the past decade from the financial crisis and stagnating domestic markets. From an investor perspective, it was certainly disappointing that the average growth of 10 selected major European chemical companies from 2007 to 2015 was only 2.4%, while the global chemical market nearly doubled and the Asian market nearly tripled during the same period.
While Asian growth over the past decade has primarily come from China, there are many indications that India will likely be the future growth driver of the chemical industry. In his presentation, Dr. Strassburger highlighted five initiatives European chemical companies should consider when considering a stronger presence in India:
- Expanding market presence to capitalize on growth opportunities in India
- Establishment of a regional center to serve not only the SAARC countries but also the Middle East and African countries from India.
- Establish cost-effective production to supply other emerging markets from India
- Establish a local purchasing organization to provide lower-cost Indian raw materials or intermediate products for global demand
- Establishment of local R&D units to develop products for the local market and reach market segments that would be difficult to reach with European products
In his presentation, Dr. Straßburger was able to demonstrate that investments in the Indian market are worthwhile: listed subsidiaries of European chemical companies are not only growing faster than the market, but also than comparable Indian chemical companies.
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