Speciality Chemical sector (part of the overall Chemical sector)

Salient features of sector analysis:

1. The Speciality Chemical sector globally is presently worth $232B projected to be $280B
by 2028.
2. India presently contributes 20% of growth, surpassing even China. As per McKinsey
report, the global Chemical industry will be worth $304B by 2028.
3. The Indian Chemical industry has surpassed all global hubs in growth and given
shareholders greater than expected returns.
4. The overall Chemical sector growth feature projections as per the McKinsey report, is
11-12% during 2021-27 in India and 7-10% from 2027-40.
5. Challenges: Rising domestic consumption, rising raw material prices, changing
manufacturing technologies through ESG approach, changing consumer preferences,
shifting of supply chains, global risk to sustainable energy.
6. Indian opportunity and trends: Of all the Chemical segments viz. Inorganic, Organic,
Petrochemical and Speciality the export levels of Speciality Chemical will rise from $2B
now to about $21B by 2040.
7. There is immediate capacity expansion of nearly 16,000 Crores for fluorocarbons and
bromocarbons to grow by 19% in 2024 and 17.6% in 2025. Additionally, the sector will
benefit by the China+1 policy of Europe and America. The McKinsey report points out
that the demand for Speciality Chemicals exported from China and imported by rest of
the world is continuously falling since 2018.

References:
1. McKinsey report
2. Equity master
3. Icra research reports

Uploaded by: S Suresh