Executive Summary of report attached here
Will the investor community continue to ignore the Indian specialty chemicals sector, with a
market size of about US$ 25bn? This industry has already delivered healthy 13% CAGR (next
only to China and Korea) over the last decade. India has emerged as the fastest-growing
specialty chemicals market fuelled by sturdy domestic demand with strong economic growth,
a large population, and rise in per-capita income. A simultaneous reduction in input costs, due
to the sharp correction in crude prices, enhanced the earning efficiency of the industry, which
relies on imported inputs. Moreover, softening of Chinese chemical exports, with environmental
issues leading to a shut down and relocation of 1000+ chemical plants, adds zing to India’s
specialty chemicals exports potential for the next couple of years. Additionally, the Indian
government’s ‘Make-in-India’ initiatives in addressing the old hurdles of the industry, with
enhanced focus on R&D and the rapid flow of FDI into the sector indicates value growth in the
domestic specialty-chemicals industry. This issue takes an in-depth look into the rising tide that
will float all speciality-chemicals boats.
By Phillip Capital
chemicals.pdf (2.1 MB)
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