Transforming India's Chemical Sector Through Digital and Analytics
Published for CII's 'Smart Factory for Chemicals & Petrochemicals Industry' seminar (Dec 2023) with McKinsey as knowledge partner, this report outlines how digital and analytics (DnA) transformation can unlock competitive advantage for Indian chemical companies — particularly MSMEs — at a time when the sector is projected to grow 11–12% annually through 2027 and triple its global market share by 2040.
Key Insights
Critical data points from Transforming India's Chemical Sector Through Digital and Analytics.
End-to-end DnA transformation can boost EBITDA by 5-10 percentage points across
A typical Indian MSME chemical company (~INR 100-105 Cr revenue) has potential t
Successful transformations show factory output up 4-140%, productivity up 3-400%
DnA initiatives provide near-real-time visibility on shipments, inventory and en
CII × McKinsey & Company
Key Findings
Major discoveries and conclusions from Transforming India's Chemical Sector Through Digital and Analytics.
EBITDA Enhancement
End-to-end DnA transformation can boost EBITDA by 5-10 percentage points across manufacturing, supply chain and procurement.
MSME Opportunity
A typical Indian MSME chemical company (~INR 100-105 Cr revenue) has potential to double its EBITDA margin (INR 5-10 Cr) through DnA initiatives.
WEF Lighthouse Benchmarks
Successful transformations show factory output up 4-140%, productivity up 3-400%, OEE up 2-85%, and product cost down 2-70%.
Visibility Extension
DnA initiatives provide near-real-time visibility on shipments, inventory and end-customer demand; smart pricing models align sales, manufacturing and procurement.
Executive Summary
A concise overview of the report's scope, methodology and conclusions.
The chemical sector is projected to grow 11-12% annually (2021-27) and 7-10% (2027-40), with global market share potential tripling by 2040. Domestic demand is expected to expand from USD 170-180 billion (2021) to USD 850-1,000 billion (2040). MSMEs represent 28-30% of the sector and are central to the growth trajectory.
End-to-end DnA transformation can lift EBITDA by 5-10 percentage points through yield optimization, energy efficiency, throughput improvement, product quality, and G&A productivity enhancements. The framework rests on three pillars: align and commit leadership on a business-led roadmap, build delivery capabilities across talent, operating model, data, and technology, and implement change management driving adoption and scaling.
What's Inside
Explore the chapters and sections covered in this report.
Report Preview
Preview selected pages from this report.
India's chemical industry at an inflection point
Digital & analytics: a catalyst for change
DnA transformation framework
Align and commit leadership on value and plan
Get the Full Report
Download the complete report in PDF format.
What You'll Learn
- How DnA transformation can boost EBITDA by 5-10 percentage points
- MSME-specific pathways to double EBITDA margins
- WEF Lighthouse benchmarks for output, productivity and OEE gains
- Three-pillar framework for leadership, capability and change management
- Myth-busting insights on common digital transformation misconceptions
Continue Your Journey
Take the next step in your Industry 4.0 transformation.
Take the Readiness Assessment
Discover where your operations stand on smart manufacturing readiness.
Explore Case Studies
See how Indian manufacturers have unlocked measurable transformation outcomes.
Explore the Knowledge Hub
Connect with ecosystem partners delivering the capabilities you need.
Programmes & Training
Build leadership and workforce capability through CII's flagship programmes.