{"id":9926,"date":"2022-06-15T16:28:00","date_gmt":"2022-06-15T10:58:00","guid":{"rendered":"https:\/\/blogs.univest.in\/?p=9926"},"modified":"2022-10-13T14:42:14","modified_gmt":"2022-10-13T09:12:14","slug":"the-specialty-chemicals-sector-shows-further-growth-potential-beyond-a-stellar-fy22","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/the-specialty-chemicals-sector-shows-further-growth-potential-beyond-a-stellar-fy22\/","title":{"rendered":"The specialty chemicals sector shows further growth potential beyond a stellar FY22"},"content":{"rendered":"\t\t
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The chemical sector is critical to a country’s industrial and agricultural development. It produces raw materials for a variety of downstream industries, including papers, paints, textiles, soaps, and detergents. India’s chemical sector is immensely diverse, covering over 80,000 commercial goods and can be divided into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilizers.<\/p>\n

The chemical industry in India is one of the world’s fastest-growing industries. After the United States, China, Germany, Japan, and South Korea, it currently ranks third in Asia and is the world’s sixth largest market in terms of output. In India, specialized chemicals account for 22% of the total chemicals and petrochemicals market.<\/p>\n

Specialty chemicals are chemical products that have a wide range of effects and are used in a variety of industries. Automotive, aerospace, food, cosmetics, agriculture, manufacturing, and textiles are among of the industries that rely extensively on it.<\/p>\n

\"India<\/p>\n

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India’s chemical industry is a global outperformer in terms of shareholder returns, and the country continues to be a desirable location for chemical businesses. As a result of this outperformance, the industry’s top line and bottom line are expected to increase at a rapid pace. Even as the Indian economy was facing headwinds between 2016 and 2019, the chemical industry maintained a CAGR of 17%.<\/p>\n

Whereas the structure of China\u2019s chemical industry changed due to stricter environmental norms, tighter financing, and consolidation. While these shifts benefited select large players in the long run, as they caused uncertainty for international players that source chemicals from China. Thus, this created opportunities for India\u2019s chemical companies in certain value chains and segments, especially in the short term. Moreover, trade conflicts have erupted around the world, especially among China, the United States, and Western Europe. These have led to shifts in global supply chains, affecting bilateral trade between China and the United States, with possible repercussions for other economies. Large chemical markets that remain accessible in this scenario could present opportunities for chemical companies in India.<\/p>\n

Furthermore, the chemical sector growth in India as a result of China’s decision to shut down numerous plants in 2015 due to pollution and other challenges. The epidemic also prompted many Western economies to reduce their reliance on China starting in FY21, a phenomenon known as the ‘China+1’ factor. This has given the industry a boost in the last two years, as evidenced by the fact that all of these companies generated their highest-ever annual revenues in FY22<\/p>\n

Let us look at some of the key specialty chemicals players in India.<\/p>\n

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