Growing strong domestic demand and increased exports will continue to fuel the growth of the Indian specialty chemicals industry. The robust performance of the sector is prompting specialty chemical manufacturers to ramp up their production capacity to meet the growing demand for its products.
e Indian chemical industry is expected to reach US$304 billion by 2025, registering a compound annual growth rate (CAGR) of 9.3 percent. The chemical industry in India is valued at a substantial US$220 billion and experts predict that it could reach an astonishing US$1 trillion by 2040
The chemical industry produces more than 80% of polymers, plastics for regular and industrial uses. These polymers and plastics are used for plenty of things such as packing, wiring, furniture, clothing, home décor, prosthesis, and electronics. water tanks, PVC piping, huge storage containers are made out of plastics
Many sub-segments in India's chemicals sector offer opportunities for building at-scale businesses. Winning plays exist across specialty chemicals (agrochemicals, flavours & fragrances, cosmetic chemicals), inorganic chemicals (caustic, fluorine) and petrochemicals (C4, C6 and C8 derivatives).
Companies involved in contract manufacturing and specialty chemicals, which have diversified exports as well as diversified end segment sales outlets, not only depending on one segment like pharma or agro, but multiple end industries like paint, coating, auto etc will be able to sail through by Q3. But otherwise, Q2 and Q3 will remain the same for all companies like Q1
accrding to the latest data released by the WTO, India has emerged as the second largest exporter of agrochemicals in the world.
