LBG CHEMICALS PRIVATE LIMITED

In their own words

The chemical industry is the backbone of industrial and agricultural development in India. It plays a significant role in the evolution of human civilization. The chemical industry is highly unstable and needs to evolve and adapt to the current business scenario in order to ensure optimization and development. Chemical industry has become an irreplaceable part of the global economy. It provides about 120 million jobs and an estimated $5.7 trillion contribution to the world Gross Domestic Product (GDP). Over the time Chemical Industries faces the problems which is listed below and trying to solve the same. The raw materials required for chemical processes are not available at the tip of our fingers. Not having easy access to the feed stocks is a major problem in the organic as well as the inorganic chemical industry. Another problem is the cost of the feedstock, it was noticed that the chief feed stocks were costlier in India when compared to their prices in nations like the Middle East, China, and other Southeast Asian countries. This might be because of the difference in manufacturing wages, size and also skill level of the laborers. Along with poor infrastructure facilities, restricted access to railway depots, ports, and quite a bad pipeline connectivity are of major concern to the domestic manufacturers. These problems create a hurdle in the path of receiving smooth delivery of raw materials. Apart from this, the power supply is another big issue faced by the small and medium industries. These players cannot afford the captive power plants, which large players usually go for. The chemicals are being imported at a much cheaper rate from low-cost manufacturing hubs like China. India after entering into the world trade organization, has witnessed a reduction in the import tariffs on many products. Due to many multilateral and bilateral agreements, the government has aimed to gradually banish tariffs to meet the increasing demands of chemicals across the country. This will escalate the competition. The cost of petrochemicals has gone too down because of the oversupplies in the global market. The domestic manufacturers have no option other than under-utilizing their plants.Non availability of Raw Materials: Addressing shortages by priority lets you identify low-hanging fruit—inventory that represents the most impactful costs contributing to your value chain. But understanding the root source of your shortages is where management can begin to reduce shortages into the future. This also lets your organization be forward-looking so you know how to deal with material shortages that are coming in the future based on current demand, POs, MOQs, and lead time in order to avoid falling short on an order. Cost of Feedstock: It was noticed that the chief feed stocks were costlier in India when compared to their prices in nations like the Middle East, China, and other Southeast Asian countries. This might be because of the difference in manufacturing wages, size and also skill level of the laborers. Our Company trying to eradicate the difference in manufacturing wages, size and also skill level of the laborers, which helps to keep cost of feedstock in control. Poor Infrastructure The industry faces many infrastructural problems such as poor pipeline connectivity, improper railway depots, and insufficient power supply, these make it difficult for the chemical industries to obtain raw materials from the numerous chemical suppliers. Our Company does not have such problems like poor pipeline connectivity, improper railway depots, and insufficient power supply.Shortage of skilled Labors The best thing can do is improve the hiring process. The talent shortage means that your hiring team is going to have their work cut out for them. If you use a recruiter, you want to investigate how effective they are at their job. Especially when it comes to midstream positions, recruiters need to know how to sell to experienced candidates. Some recruiters are great at selling to people who are new to the market, but to connect to veterans, you need someone who has vast knowledge about the industry. You also want to expand your search. If you only look for candidates who are local, the selection will be very limited. At the same time, it is hard to appeal to candidates who live farther away if there is not a plan in place to help them transition. Most people won’t take a job in another state if they do not have viable housing options.Training will also become extremely important. If there is not enough skilled labor, the labor needs to be created. Investing in education and training is the only real way you can stay competitive in the long-term. One way to approach this is to implement train-ing programs to help less-skilled workers gain the skills they need to advance in the company and start to perform more specialized jobs.

Written by the company on its public Startup India profile. Not verified by us.