Chlor-Alkali refers to the two chemicals, including chlorine and alkali which are produced as a result of the electrolysis of saltwater. According to the Chlorine Institute, most of the chlorine is manufactured using electrolysis process by the diaphragm, membrane, or mercury cell process. In each process, a salt solution (sodium or potassium chloride) is electrolyzed by the action of direct electric current which converts chloride ions to elemental chlorine. Chlorine is also produced in several other ways, for instance, by electrolysis of molten sodium or magnesium chloride to make elemental sodium or magnesium metal; by electrolysis of hydrochloric acid; and by non-electrolytic processes. The most common chlor-alkali chemicals include sodium hydroxide (caustic soda) and chlorine. Additionally, it can include muriatic acid and potassium hydroxide. Chloro-2,3-epoxypropane has multiple industrial uses and the most crucial being the manufacturing of epoxy resins. Chlorine is also used in the production of several inorganic compounds, primarily hydrogen chloride and titanium dioxide. As per the Chlorine Institute, in 2016, the annual production of chlorine was 65 million tons across the globe. The production of chlorine in the US was 14 million tons and 10 million tons in Europe in 2016. Moreover, in 2017, chlorine production was reported at 9.9 million tons in Europe. The production of chlorine is varying owing to fluctuations within the industrial sectors, such as paper and pulp and chemical. For instance, as per the Confederation of European Paper Industries (CEPI), the pulp production capacity in Europe was 42.6 million tons in 2017, whereas, it was 44.2 million tons in 2010.

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Segmental Outlook

Indian chlor alkali market is segmented on the basis of products and applications. On the basis of products, the market is segmented into chlorine, caustic soda, and soda ash. Chlorine segment held the largest share in the chlor alkali market. Chlorine is produced as a by-product during caustic soda production. Chlorine is found to be widely used in end-user industries which includes during PVC manufacturing, drinking water disinfection and pharmaceutical production.

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Alumina will be the largest segment by Application

By application, Indian chlor alkali market is divided into paper & pulp, water treatment, organic chemicals, inorganic chemicals, alumina, textiles, and others. Alumina is expected to hold the largest share during the forecast period. It is due to the increased investment in alumina industry in the recent times. Furthermore, growth in the alumina industry is expected to propel the demand for caustic soda as the caustic soda serves as a major raw material in the refining process of alumina. This will benefit the market for chlor alkali chemicals during the forecasted period. The growth will be accompanied by the Organic chemical segment that are mainly found application in pharma industry.

Market Players Outlook

Some of the prominent players of Indian chlor alkali market are AKzoNoble, Axiall Corp., Formosa Plastic Corp., Nirma Ltd., Occidental petroleum Corp. (OXY), Olin Corp., Tosoh Corp., Ineos Corp., The Dow Chemicals Company, Aditya Birla Chemical Company, DCM Shriram Ltd., Lords Chloro Alkali Ltd. and so on. To sustain in the market, these players adopt various strategies such as acquisitions, merger, product launch, expansions.

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