Release Date: 19-Feb-2013
Global specialty chemical manufacturers find Asian countries, especially India, an attractive destination for establishing their regional bases. This helps them access the growing markets in these regions with products and services suited to the needs of the local customers. These countries also offer a low cost advantage. While China had been a preferred destination so far, we are likely to see a change to this in the future with India making a mark as a reliable and cost effective supplier. Smaller Indian companies are finding favor with MNCs as providers for their specialty chemical requirements. Key factors favoring this trend include quality of product, timely delivery, costs, safety, and health and Indian companies are now able to match up to these factors. For the Indian companies this trend provides steady revenue stream if they become the most preferred partners, for MNCs for their specialty chemical requirements.
India is finding favor as a major hub for manufacturing and R&D. This is partly because the cost advantage that China had vis-à-vis India in manufacturing is becoming insignificant. India has a strong legal and regulatory framework for research based development and a richly talented, English speaking pool of knowledge workers. With India becoming a signatory to TRIPS in 1995, many companies are getting their products patented in India. While multinationals are increasing their sourcing from India, Indian companies are ramping up to the opportunity by creating new capacity, increasing productivity and expanding into Western markets.
For more information visit: “India Specialty Chemicals Market Outlook 2018”