Synthetic latex polymers industry likely to grow at 10% till 2013: study

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Chennai: The synthetic latex polymers industry in India would grow at a compound annual growth rate of 10.4% until 2013, according to the latest research from consulting & research firm Kline & Company.

The estimated growth rate of the Indian synthetic latex polymers market has been about 14% (by volume) since 2005. “The major driver for development of the synthetic latex polymers industry in India is the high growth rate of end-use industries like paints & coatings, adhesives, construction, automotive, etc,” said Parvesh Magoo, consultant (chemicals & materials practice) at Kline.

Another impetus comes from the fact that there are no major substitutes to replace synthetic latex polymers in their functional aspects across various application segments. In 2008, the domestic synthetic latex polymers market was estimated at 219,000 dry tonne. Most suppliers of synthetic latex polymers in the Indian market, both multinational companies and local players, are mainly competing in the acrylics product category. Though there are no stringent regulations in place currently, the suppliers have been continuously creating awareness amongst end users with regards to the usage of environment-friendly and ‘green’ products. The price, quality and assurance of supply are the critical factors affecting the choice of suppliers by the end users. “Although export-oriented industries like leather, textiles and carpet have been affected by the global economic turndown, they are expected to rebound in the next three to five years, subsequently increasing the synthetic latex polymer usage within these applications,” adds Mridul Joy, consultant, chemicals & materials practice.

The key applications which consume synthetic latex polymers in the Indian market are adhesive & sealants, paints & coatings and textiles, constituting together around 75% of the total market by volume. Among the product categories of synthetic latex polymers, acrylics form the dominant product type, constituting about 45% of the overall Indian market.

In 2008, the volume of synthetic latex polymers consumed in India was in excess of 200,000 dry tonne, valued at just over $600 million. Styrene acrylics is the leading latex with respect to both volume and value, closely followed by PVAc and then pure acrylics.