Silica
SILICA Quantity to be Marketed : 48 TPD
Silica is a thickening agent generally produced by flamed hydrolysis method and is used in applications, ranging from additive compounds in various liquids, coatings, and solutions to anti-caking & thickening agents. The rising need to improve operational capabilities of various drugs & tablets and minimize the overall production costs involved in drug manufacturing will drive the fumed silica market growth.
A positive outlook of the paints & coatings industry owing to the rising demand from the construction and automotive sectors will support the fumed silica market as it is used to improve the rheological, thixotropic, and anti-sagging properties of paints & coatings.
The pharmaceutical, beauty & personal care segment will witness around 5.5% CAGR through 2027. market growth The product is used in various drug, capsule, & tablet formulations and in hair care, skincare & oral care products to impart necessary properties. The rising population in combination with increasing expenditures on healthcare and beauty products will result in the strong growth of fumed silica market in the coming years. It improves the flow properties of starting materials required for tablet & capsule manufacturing and helps in increasing the tablet hardness.
Silica is used in various cosmetics & personal care products to enhance rheology control and as an anti-settling, thickening, & anticaking agent. Favorable trends associated with the pharmaceutical and cosmetics industries will propel the fumed silica.
China accounts for roughly over half of the world’s fumed silica market both in terms of production and consumption. Reliance on China has impacted the global supply chain as the coronavirus pandemic has affected logistics and production operations. Industries are also catching up with supply risks by concentrating their production activities in different geographic locations to minimize the risk associated with reliance on a single location. Fumed silica is a critical element used in the construction, pharmaceutical & cosmetics industries and the current pandemic scenario will negatively impact the fumed silica market share.
Silica Market size was valued at USD 1,599 million in 2020 and will witness 5.4% CAGR from 2021 to 2027. Slica is highly versatile and can be used in daily use products to industrial products. Asia Pacific held over 40% share in 2020 and is anticipated to grow at a significant rate during the forecast period.
This product is predominantly industrial consumable and considerable quantity being imported to meet the demand, hence an import substitute. Therefore the marketing strategy envisaged are:
- To market directly to OEMs by the company by virtue of their good access to some large consumers of the product.
- To establish strong and wide spread dealer network for marketing the product to other users excluding the OEMs covered by the company.
Since the grade of Silica from the plant is above 99.5% it will be applicable for high end applications wherein the consumer level price is expected to be on the higher bracket.The quantity being produced from this project is less than 7% of the existing Indian Market size and 0.10 % of the global market size. Hence sale of this product in Indian market through a strong and widespread Dealer network will achieve the targeted sale volumes. To make the marketing effort more aggressive, it is proposed to offer attractive discount to the traders by keeping the sale price at application level competitive and thus achieve the budgeted sale price to Dealers.
