Speciality Chemicals Industry Of India: Opportunities And Challenges

By Author: SolutionBuggy
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As the enterprises across the world are considering a strategic shift in their manufacturing activities by reducing dependence on China, the Indian chemical industry particularly specialty chemicals industry is expected to witness massive growth. The specialty chemicals market that was valuedatINR 2,356.93 billion in the FY 2018 is expected to become INR 4,527.36 billion by the FY 2024, growing at a CAGR of 11.9 percent during the forecast period, according to a report by Research And Markets.

The specialty chemicals in the country accounts to 22 percent of total chemicals production in India. The specialty chemicals segment broadly comprises of chemicals such as polymer additives, personal care ingredients, water treatment chemicals, water treatment chemicals, construction chemicals, paints, coatings, colorants, etc. The price of these specialty chemicals unlike that of basic chemicals depends largely on the unique features and utilities rather the composition of chemicals. Some of the major players operating in the specialty chemicals segment include BASF India Limited, Aarti Industries Limited, PI Industries ...
... Limited, SRF Limited, etc.

Growth Drivers
Increasing investments and demand in the consumer segments such as personal care, food and beverages, textiles, packaging are driving growth of specialty chemicals in the country. As people are finding no time because of hectic work schedules, they are preferring processed and packaged foods. This is leading to increased demand of edible oils which are used in the food processing industry. This in turn is driving demand for specialty chemicals that are used for edible colors. Increased globalization and improved standard of living of people are driving demand across the home care and personal care segments.

Apart from growing demand in the aforementioned industries, the negative sentiment over China across the world due to the recent coronavirus pandemic and increasing trade tensions between the US and China is also contributing to the growth of the specialty chemicals market in India.

Impediments
While there exist a lot of growth drivers, there are also some impediments that are negatively impacting the growth of the specialty chemicals market in the country. The demand for specialty chemicals in India is driven by the demand in the consumer segments such as personal care, food and beverages, textiles, packaging, etc. Due to this fragmented nature of the Indian chemicals industry, even a minor change in the operation of these industries which impacts the demand eventually impacts the demand for specialty chemicals in the country. So, specialty chemicals manufacturers in the country should focus on exports to foreign countries along with the domestic market.

Speciality chemicals are largely used in the manufacture of various drugs. Therefore, considering the increased demand for pharmaceutical products across the world, Pharmaceutical industry is one of the key sectors that can provide better business opportunities for Indian specialty chemical manufacturing fraternity.

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