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Structural changes in India’s chlor-alkali industry

2026-03-01View Original

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  According to Sinochem New Network, the 11th Chlor-alkali Industry Conference of the Indian Alkali Manufacturers Association (AMAI) was held in New Delhi recently. At the meeting, Aditya Shriram, Deputy General Manager of DCM Shriram Ltd., and the Indian Alkali Manufacturers Association stated that India’s chlor-alkali industry is at a critical turning point, about to undergo structural changes that will reshape its position within the global chemical value chain. The industry faces unprecedented challenges, but it also holds opportunities of equal magnitude.   Shriram pointed out that the transformation in the chlor-alkali industry has shifted from a gradual upgrade to a structural change. Products such as caustic soda, soda ash, sodium bicarbonate, hydrogen, and chlorine are basic raw materials for numerous industries including chemicals, metals, pharmaceuticals, agriculture, textiles, and renewable energy. The internal and external environment of the industry is undergoing rapid changes; the adjustments in the global economy and geopolitics by 2026 are reshaping supply chains, energy structures, and trade flows. Flexibility has shifted from a competitive advantage to an essential capability for survival in this industry.   As the industry develops, India’s role in the global chemical value chain will become increasingly important. India’s chemical industry is expanding rapidly, with ambitious capacity expansion plans. By March 2026, India’s annual production capacity for caustic soda is expected to reach 6.7 million tons, with exports accounting for around 9%; therefore, expanding exports has become an inevitable option for this industry. The annual production capacity for soda ash is set to reach 4.7 million tons, which is roughly in line with the growth rate of demand. Favorable policies are likely to help make the soda ash industry a key driver of expansion in the chemical sector.   The PVC industry is at a critical turning point; in the coming years, India’s annual PVC production capacity will double from 1.64 million tons to 4.12 million tons. This will significantly reduce India’s reliance on PVC imports and strengthen the linkage with the chlor-alkali industry.   In terms of sustainable development, India’s chlor-alkali industry is at the forefront of the transition to green technologies; it has shifted from mercury-based and diaphragm processes to membrane processes, while also accelerating its adoption of green electricity.

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