Chemical Regulations and Compliance: What Every Industrial Chemicals Company Should Know

07 April 2023

With rising incomes and consumer spending, the chemical sector in India is projected to more than double its current valuation by 2025, to $300 billion, and to $1 trillion by 2040. India's chemical industry produces about 80,000 different commercial goods which can be broken down into the following categories: speciality chemicals, polymers, bulk chemicals, petrochemicals, agrochemicals, as well as fertilisers. Palvi FZE is an excellent Industrial Chemicals manufacturer in UAE that can be approached for high-quality Industrial Chemicals.

The chemical industry in India is projected to grow from its 2019 level of US$ 178 to 304 billion by 2025, a CAGR of 9.3 per cent. There will be a yearly increase in chemical demand of 9% from now until 2025. By 2025, the chemical sector in India is projected to add $300 billion to the country's GDP.

The Indian chemicals and petrochemicals industry is expected to receive a total of US$ 107.38 billion (INR 8 lakh crore) in investment by 2025. In India, the speciality chemical market accounts for 22 per cent of the overall chemicals and petrochemicals industry. There will be a 12% annualised growth rate in the need for speciality chemicals between 2019 and 2022.

According to Crisil's research, the revenue of Indian manufacturers grew at a CAGR of 11% between FY15 and FY21, raising India's share of the global chemical industry from 3% to 4%. In FY22, the speciality chemical manufacturer’s CAPEX is said to rise to US$ 815-842 million, an increase of 50% YoY due to a resurgence in domestic demand and solid exports. By FY22, domestic demand will have recovered, and higher realisations due to increased crude oil prices and improved exports will have pushed year-over-year revenue growth to 19-20% from FY21's 9-10%.

Source: India Brand Equity Foundation

India may take advantage of economies of scale because of its closeness to the Middle East, which supplies most of the world's petrochemical feedstock.

What are speciality chemicals?

Speciality chemicals are a group of chemicals that are produced to meet specific performance criteria and functions for a particular industry or application. They are typically produced in smaller quantities compared to commodity chemicals and are used in various industries, including pharmaceuticals, agriculture, coatings, adhesives, textiles, and many others.

Unlike commodity chemicals, which are produced in large quantities and are used in a wide range of applications, speciality chemicals are often produced for a specific application, where the desired chemical properties are critical to the end product's performance.

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Surfactants: used in detergents, personal care products, and industrial cleaning agents to lower surface tension and enhance the cleaning performance of the products.

Catalysts: used in various chemical reactions to increase the reaction rate and efficiency, reduce energy consumption and cost, and minimize waste.

Polymers: used in a wide range of applications, including adhesives, coatings, and plastics. They provide excellent strength, durability, and flexibility, and can be tailored to meet specific performance requirements.

Agrochemicals: used in agriculture to protect crops from pests, diseases, and weeds, and to enhance plant growth and yield.

Speciality gases: used in various industries, including healthcare, electronics, and food and beverage production, to provide controlled environments, prevent contamination, and enhance product quality.

Speciality chemicals for Oil and Gas Industry:

Speciality chemicals play a critical role in the oil and gas industry, where they are used to enhance the production, processing, and transportation of crude oil and natural gas. These chemicals are produced to meet specific performance criteria and functions and can significantly improve the efficiency, safety, and environmental impact of the industry's operations.

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Drilling Fluids: Drilling fluids are used during the drilling process to lubricate and cool the drill bit, prevent well collapse, and remove cuttings from the wellbore. Speciality chemicals such as emulsifiers, surfactants, and polymers are used to formulate drilling fluids with unique properties that can withstand high pressure and temperature and reduce the environmental impact of the drilling process.

Corrosion Inhibitors: Corrosion inhibitors are used to protect metal surfaces from corrosion caused by exposure to water, salt, and other chemicals. Speciality chemicals such as inhibitors, biocides, and oxygen scavengers are used to develop corrosion inhibitors that can protect pipelines, tanks, and other equipment from corrosion and extend their lifespan.

Enhanced Oil Recovery Chemicals: Enhanced oil recovery (EOR) chemicals are used to increase the recovery of oil from reservoirs. These chemicals include surfactants, polymers, and alkalis, which are used to change the properties of the reservoir, increase the mobility of the oil, and reduce the amount of residual oil left behind.

Gas Treatment Chemicals: Gas treatment chemicals are used to remove impurities, such as water, carbon dioxide, and sulfur, from natural gas before transportation and distribution. These chemicals include solvents, absorbents, and catalysts, which are used to selectively remove impurities and improve the quality of natural gas.

Friction Reducers: Friction reducers are used to reduce the friction between fluids and equipment during hydraulic fracturing operations. Speciality chemicals such as polymers are used to develop friction reducers that can reduce the pressure and energy required for hydraulic fracturing and improve the efficiency and safety of the process.

Chemical Regulations and Compliance for Industrial Chemicals in India:

Here in this blog post, you explore different regulatory bodies in India that oversee the production, import, and use of industrial chemicals, including the Ministry of Environment, Forest and Climate Change (MoEFCC), Central Pollution Control Board (CPCB), State Pollution Control Boards (SPCBs), etc. Experience the best industrial chemical solutions for your business needs - partner with Palvi FZE, one of the trusted chemical companies in UAE, and elevate your operations today!

Industrial chemicals play a crucial role in the development of the modern economy, but they also pose significant risks to human health and the environment. To ensure the safe production, import, and use of industrial chemicals in India, there are various regulatory bodies that oversee and enforce compliance with chemical regulations. In this blog post, we will provide an overview of the different regulatory bodies in India and their roles in ensuring chemical safety and compliance.

●Ministry of Environment, Forest and Climate Change (MoEFCC):

The Ministry of Environment, Forest and Climate Change (MoEFCC) is the primary regulatory body in India responsible for protecting the environment and promoting sustainable development. The MoEFCC is responsible for developing and enforcing environmental regulations and policies, including those related to industrial chemicals. The MoEFCC plays a critical role in regulating the production and use of hazardous chemicals, such as pesticides, fertilizers, and other toxic substances. The MoEFCC has established several laws and regulations to promote chemical safety, including the Chemicals (Management and Safety) Rules, 2021, which sets out the regulatory framework for the safe management of chemicals in India.

●Central Pollution Control Board (CPCB):

The Central Pollution Control Board (CPCB) is a statutory organization under the MoEFCC that is responsible for monitoring and enforcing compliance with environmental regulations. The CPCB is responsible for conducting inspections and audits of industrial facilities to ensure compliance with environmental standards, including those related to the handling and disposal of hazardous chemicals. The CPCB also collects and analyzes environmental data to assess the impact of industrial activities on the environment and human health. The CPCB collaborates with other regulatory bodies, such as the State Pollution Control Boards (SPCBs), to enforce environmental regulations across the country.

●State Pollution Control Boards (SPCBs):

The State Pollution Control Boards (SPCBs) are state-level regulatory bodies that are responsible for implementing environmental regulations and monitoring industrial activities within their respective states. The SPCBs are responsible for issuing environmental clearances, conducting inspections, and enforcing compliance with environmental regulations. The SPCBs also play a crucial role in monitoring air and water quality in their respective states and taking action against polluting industries. The SPCBs work closely with the CPCB to ensure that industrial activities are conducted in a safe and environmentally responsible manner.

●Chemical Regulations in India:

The Chemicals (Management and Safety) Rules, 2021 is the primary regulation governing the production, import, and use of industrial chemicals in India. The rules apply to all chemicals, including hazardous chemicals, and require manufacturers, importers, and users to comply with various safety standards and regulations. The rules require manufacturers and importers to register their chemicals with the authorities and obtain approval before importing or manufacturing any new chemicals. The rules also require users to take necessary precautions while handling and storing hazardous chemicals, such as providing safety equipment and ensuring proper labelling of containers.

●Compliance Requirements for Industrial Chemicals:

Compliance with chemical regulations is critical for companies that manufacture, import, or use industrial chemicals in India. Companies must comply with various safety standards and regulations, including those related to the storage, labelling, handling, and disposal of hazardous chemicals. Companies must also maintain records of their chemical inventories and provide information on the potential risks associated with their chemicals to the authorities.

To ensure compliance with chemical regulations, companies must conduct regular safety audits and implement best practices for chemical handling and management. This includes providing adequate safety equipment and training for employees, implementing proper labelling and storage of chemicals, and ensuring that hazardous waste is disposed of in accordance with regulations.

Companies must also keep up to date with changes in regulations and ensure that their processes and procedures are updated accordingly. Failure to comply with chemical regulations can result in legal and financial penalties, damage to reputation, and harm to human health and the environment.

In addition to regulatory compliance, companies that handle industrial chemicals should also prioritize safety and sustainability in their operations. This includes reducing the use of hazardous chemicals, implementing green chemistry practices, and minimizing waste and pollution.

●Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH):

The Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) is a regulation implemented by the European Union (EU) and applies to companies exporting chemicals to the EU. Indian industrial chemical companies exporting chemicals to the EU must comply with the REACH regulation by registering their chemicals with the European Chemicals Agency (ECHA) and obtaining authorization to use certain hazardous chemicals.

●Globally Harmonized System of Classification and Labelling of Chemicals (GHS):

The Globally Harmonized System of Classification and Labelling of Chemicals (GHS) is a global system that standardizes the classification and labelling of chemicals. India adopted the GHS system in 2008 and mandates the labelling of chemicals with specific symbols, signal words, and hazard statements. Companies must comply with the GHS system to ensure the safe handling, transport, and use of chemicals.

●Environmental Protection Act:

The Environmental Protection Act aims to prevent and control environmental pollution in India. The act mandates the implementation of pollution control measures, including the proper management and disposal of hazardous waste. Industrial chemical companies must comply with the act's requirements by obtaining necessary permits, reporting emissions, and taking measures to prevent environmental pollution.

●Bureau of Indian Standards:

The Bureau of Indian Standards (BIS) is a national standards organization in India that sets standards for various products, including chemicals. The BIS mandates companies to comply with specific standards related to the quality and safety of chemicals. Companies must obtain the necessary certification from BIS to ensure compliance with these standards.

Importance of following Chemical Regulations and Compliance for Industrial chemicals in India:

1.Ensuring the Safety and Health of Employees:

Industrial chemicals can pose significant risks to human health and safety, and compliance with regulations helps to minimize these risks. By implementing measures to prevent chemical accidents, providing adequate personal protective equipment, and ensuring safe handling and disposal of hazardous waste, industrial chemical manufacturers can protect the health and safety of their employees.

2.Preventing Environmental Pollution:

Industrial chemicals can also have severe impacts on the environment, including air and water pollution, soil contamination, and harm to wildlife. Compliance with environmental regulations helps to prevent and control pollution and minimize the impact of industrial chemicals on the environment. It also helps to promote sustainable development and protects natural resources.

3.Avoiding Legal and Financial Consequences:

Non-compliance with chemical regulations and compliance requirements can lead to legal and financial consequences. The government can impose penalties, fines, and even criminal charges for non-compliance. This can also result in reputational damage for the manufacturer, leading to a loss of trust and decreased demand for their products.

4.Ensuring Quality and Safety of Products:

Compliance with regulatory requirements also helps to ensure the quality and safety of industrial chemicals. Standards set by regulatory bodies, such as BIS, help to ensure that chemicals meet specific quality and safety standards. Compliance with these standards helps to maintain the quality and safety of products, protect consumers, and maintain the reputation of the manufacturer.

5.Promoting Sustainable Development:

Compliance with chemical regulations and compliance requirements also helps to promote sustainable development. It encourages manufacturers to adopt cleaner and more sustainable production processes, reduce waste generation, and promote recycling and reuse of materials. This can help to reduce the impact of industrial chemicals on the environment and promote sustainable development.

Final Thoughts:

In India, chemical regulations and compliance are critical for ensuring the safe production, import, and use of industrial chemicals. The Ministry of Environment, Forest and Climate Change, the Central Pollution Control Board, and the State Pollution Control Boards are responsible for overseeing compliance with chemical regulations and enforcing environmental standards.

To ensure compliance with chemical regulations, companies must implement best practices for chemical handling and management, conduct regular safety audits, and stay up to date with changes in regulations. Prioritizing safety and sustainability in chemical operations can also help Industrial Chemicals exporters in UAE in reducing the risks and mitigating the potential negative impacts of industrial chemicals on human health and the environment. By following regulations and implementing best practices, companies can contribute to a safer and more sustainable chemical industry in India.