Crisil has said in a report released on Thursday that Indian specialty chemical companies will be seen leaving Chinese companies behind and by 2026, their share in the global market will increase to 6 per cent from 3-4 per cent in FY21.
Crisil has said that the revenue growth of Indian specialty chemical companies will be between 18-20 percent in this financial year. At the same time, next year it will be between 14-15 percent, while in the last two financial years, the revenue growth of these companies will be in single digit. The reason for this growth will be increase in exports and strong demand in the domestic market.
Significantly, all the companies globally are focusing on China Plus policy to ensure their supply after Corona, which will benefit Indian companies. The report said that due to strong demand for specialty chemicals, domestic companies are focusing on increasing their production capacity. Due to which, in the next two financial years, the capital expenditure being made by the companies on their expansion can see an increase of 50 percent and it can reach the level of Rs 15,000 crore.
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It should be noted that specialty chemicals are a low volume and high value product. Many consumer companies use it for their work. India’s specialty chemicals sector generates equal revenue from both the domestic market and the foreign market.
CRISIL has said that domestic business income of specialty chemical companies is expected to grow by 18-20 per cent in this fiscal, while it is expected to grow by 13-15 per cent next year. Apart from this, the exports of these companies are also expected to grow by 18-20 per cent in this financial year and 10-12 per cent in the next financial year.
CRISIL director Gautam Shahi says that in recent times, China seems to be lagging behind in terms of cost competitiveness due to increase in environmental costs and cut in government grants. Along with this, due to the Corona epidemic, customers are focusing on making another supply line apart from China. Which will benefit Indian companies.
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