India’s industrial and chemical industry are seeing fresh investments, policy shifts and capacity expansion across agriculture, specialty chemicals, petrochemicals and fertilizers.
The latest developments include Dhanuka Agritech’s planned INR 200 crore pesticide plant in Nagpur, a proposed paraquat ban, rising demand for semiconductor cleaning chemicals and stronger quarterly sales at South Korea’s SK Chemicals.
At the same time, India is expanding its uranium production plans, adding major petrochemical capacity in West Bengal and benefiting from lower global urea prices. Together, these developments show how companies and policymakers are responding to supply, cost and demand changes.
Dhanuka Agritech is planning to invest up to INR 200 crore in a new pesticide manufacturing facility in Nagpur. The plant is expected to add 23,000 tonnes of annual production capacity and is targeted to begin operations by April 2028.
The project will strengthen Dhanuka’s domestic manufacturing network and improve its ability to serve crop protection markets across central India. Nagpur’s location could also help the company improve distribution and respond faster to seasonal demand.
The move comes as Indian agrochemical companies focus on increasing domestic production and building more reliable supply chains. For Dhanuka, the additional capacity could support its pesticide portfolio while reducing pressure on existing production and distribution networks.
India’s proposed ban on paraquat dichloride could affect smaller agrochemical formulators and import-dependent traders more heavily than large diversified companies. The draft order proposes restrictions on the import, manufacture, sale, transport, distribution and use of the herbicide.
The proposal follows an expert committee review and a recommendation from the Registration Committee. If finalized, India would join more than 70 countries that have already banned or restricted paraquat because of its acute toxicity.
The proposed ban could also affect exports because the draft reportedly covers manufacturing, rather than only domestic sales or use. This could close an important supply route for Indian companies serving overseas markets. The final impact will depend on the wording of the order and whether the government provides a transition period or export-related exemptions.
The global sodium sulfonate surfactant blends market is expected to grow steadily through 2035, with semiconductor and electronics cleaning emerging as major demand drivers. IndexBox projects a compound annual growth rate of 4.6% between 2026 and 2035.
The market is moving toward higher-specification cleaning products as semiconductor manufacturers require tighter control over particles, residues and contamination.
Semiconductor fabs are raising the technical requirements for cleaning chemicals as chip designs become smaller and more complex. Demand is also being supported by AI chips, memory devices, MEMS, advanced packaging and 3D integration.
Environmental requirements are another factor. Buyers are increasingly looking for low-foam, biodegradable blends that work with closed-loop water systems and stricter wastewater rules.
Also Read: India as a Global Manufacturing Hub in the New Mobility Era
South Korea-based SK Chemicals recorded its highest quarterly standalone revenue since its 2017 spin-off, helped by its green chemicals and pharmaceutical businesses.
Second-quarter standalone sales increased 24.8% year over year to 479.1 billion won, while operating profit rose 26.8% to 31.9 billion won.
The company plans to expand sales of higher-value green chemical products in the second half of the year. It also aims to widen its pharmaceutical portfolio and drug pipeline.
On a consolidated basis, including SK bioscience, the company reported an operating profit of 32.3 billion won. The results point to stronger contributions from both materials and healthcare-related businesses.
Haldia Petrochemicals is set to add a major new petrochemical facility in West Bengal, with the company’s INR 6,000 crore phenol and acetone plant scheduled for inauguration on October 14, 2026.
The facility is being developed through HPL subsidiary Adplus Polymers & Chemicals at Haldia. It will include what has been described as India’s first on-purpose propylene plant based on olefin conversion technology.
HPL chairperson Purnendu Chatterjee recently visited the site in February this year to review the final phase of construction accompanied by whole-time director and CEO Navanit Narayan and senior project officials.
The project will also house the country’s largest phenol production unit. The plant is expected to strengthen India’s domestic petrochemical manufacturing base and expand production of key chemical feedstocks.
Haldia Petrochemicals Chairman Purnendu Chatterjee had reviewed the final phase of construction at the site earlier this year along with company executives and project officials.
India’s latest urea import tender is expected to bring down procurement costs after global prices eased from their earlier surge. Rashtriya Chemicals and Fertilizers (RCF) has sought 1.7 million tonnes of urea for delivery by September 24.
Bids received in the latest tender were between USD 390 and USD 431 per tonne, compared with USD 444-USD 605 per tonne in RCF’s June tender.
The lower prices could help reduce pressure on India’s fertilizer subsidy bill. The country had already purchased about 40% of its annual urea imports at prices roughly twice the pre-crisis level.
Urea accounts for around 45% of India’s fertilizer consumption, making import prices important for government spending. India sells urea to farmers at heavily subsidized prices, with the subsidy covering nearly 90% of the retail cost.
The latest industry developments point to a mix of capacity expansion, regulatory change and shifting global demand. Dhanuka Agritech and Haldia Petrochemicals are adding major manufacturing capacity, while UCIL is preparing for higher uranium demand from India’s nuclear expansion.
At the same time, the proposed paraquat ban could reshape parts of the agrochemical market, especially for smaller companies. Semiconductor demand is creating new opportunities for specialty chemical suppliers, while stronger SK Chemicals sales highlight growing demand for green chemicals and pharmaceuticals. Lower urea prices could also provide some relief to India’s fertilizer subsidy burden.
.jpg "Industrial Packers: Engineering Industrial Packaging for India's Manufacturing Future")
We use cookies to ensure you get the best experience on our website. Read more...
