The Money Roller

Abstract

This report is made with the sole purpose of presenting my views on Specialty Chemical sector to the readers. This report will also present my views on the potential investment that can be made in this sector. The report contains data that is obtained from the reliable source and the views present in this report purely presents my point of view and opinion may vary from person to person. Specialty chemicals is one of the sectors in which government is giving incentives under the program ‘Make in India’ by reducing the import duty on certain chemicals. India’s chemical sector contribute 1.2% of the GVA. It also forms 3% of the overall global trade in specialty chemicals as compared to China who the largest share of 25% in the overall global trade (Source: Aarti Industries annual report 2019). Growth of this sector depends on the growth of its end usage application industries such as agrochemical, dyes, flavour and fragrance, polymer addictive etc. The growth drivers for this sector is innovations, that can drive up this sector. As specialty chemicals are such chemicals that add high value to the product by being used in low volumes. For spurring this sector, government has allowed 100 % Foreign Direct Investment (FDI). Currently, the consumption of chemicals in India is US $ 23, which is one tenth of the global average. So, there is a lot of potential of this sector to grow in India. India also has an estimated that by FY 2022 the CAGR would be 12-13 %, a double-digit growth.