Is a chemical business in a country becoming one of the new emerging divisions? Also, the capacity of which a number of investors have been underestimating.
Formerly, certain export segments including pharma, auto-ancillaries as well as IT have been producing huge wealth for the investors. Presently, the situation is quite comparable to the chemical industry. Since the dynamics appear to be outperforming for the chemical business.
Although a number of industries in India have been witnessing a slowdown, chemical business is kicking the trend. On the account of robust growth every single quarter. The best 10 companies of a chemical have reported an average profit of almost 48 % in the previous quarter. Also, experts are of a mind that this trend will likely continue for some time at least.
Experts working with Credit Suisse are of the view that the entire industry will constantly register the growth in two digits.
Now, with the positive view in terms of the industry trend, chemical companies’ shares, like, SRF, Vinati Organics, Aarti Industries, Atul, Deepak Nitrite as well as GHCL have hit lifetime highs.
Increasing consumption in India, import exchange plus mounting shares within exports across the globe are 3 major reasons for such development. Moreover, consumption in India is around 20 % of the international average. Nevertheless, 45 % of the overall demand is fulfilled by imports that mark approximately $55 billion, as per the estimates.
Now, with the stringent rules by the Chinese government that is resulting in several Chinese companies shutting down, Indian players are a benefit. Big chemical sourcing chains across the globe have been focusing on looking at India as a substitute market.
Internationally, about $430 billion of chemicals are been exported, with Europe & China.