The Indian Chemical Industry is growing in leaps & bounds not only in India but also the world. It not only plays a vital role in our economic development but also serves as an important ingredient for the industrial and agricultural development. The Indian Chemical & Petrochemical Industry is currently valued at close to $180 Billion i.e. ~3% of the global chemical industry and is expected to reach $300 Billion by 2025.
India’s Specialty Chemical Industry has been esteemed at $35 Billion and is well tranquil for growth. It has grown by 13%-14% in the last five years and is expected to reach $70 Billion by 2025. It is to be noted that a sharp fall in the crude prices from $100 to $35/barrel has improvised the margins for alluring chemical players. The Colorant Chemical Industry is worth $7 Billion in India thereby exporting more than 72% of the annual production.
A huge domestic consumption is major growth driver behind India’s Chemical Industry. Indians consume more than 40% of its output with promising new heights. The growing urbanization and increasing disposable incomes of the Indian economy is fueling substantial growth of the domestic Chemical Industry. Chemicals constitute close to 5.5% of total Indian exports.
After the giant dye manufacturer from China has been shut down due to governmental policies, which has created a fairly huge supply glut and increased the profitability of Indian companies. As a key ballooning element for developing economy, the government has permitted cent percent FDI through automatic route and de-licensed the manufacture of most of the chemical products except a few hazardous chemicals.
Notably, such chemical majors have a commanding market share in their respective segments. Great rallies can be expected in the Indian chemical markets till the time Chinese competitors become operational again.
This will create volatility in the prices of the chemicals and India is set to be benefitted the most from this in the near future. VSRK is all engaged to earn the revenue from the same for its reputed investors.
