Andhra Petrochemicals is the sole manufacturer of oxo-alchohols, including N-Butanol, in the domestic market. Their production capacity is quite low (26 KTA) and by and large the output rate has been quite disappointing (just 21% during 2013-14). For the very same reason, the manufacturer only targets the southern Indian market.
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Because of a negative (-12.91) production CAGR, most of the domestic demand for n-butanol is met through imports and the international market has a direct influence on the domestic prices. The consumption of the chemical is expected to increase by a large amount because it is now also seen as an alternative fuel to replace gasoline, which would result in better mileage and above all, will increase the amount of energy derived from biomass in comparison to ethanol by 24 - 42%.
The current demand in India for n-butanol is only between 45KTA to 50KT, as it is used in a lot of niche markets such as perfumes. It is also used as a solvent for the extraction of essential oils, for paints, coatings, natural resins, gums, synthetic resins, dyes, alkaloids and camphor.
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