Specialty chemicals business is referred to as a ‘knowledge-based’ one that caters to different applications that make the business more complex. Manufacturers can create a niche for products having higher and more stable margins. The Indian specialty chemical industry is in a sweet and positive situation. It is characterized by substantially lower penetration against a user base that sees increasing globalization and higher disposable income. Besides these, the industry is also benefiting from macro-economic trends.
The Indian market for specialty chemicals is expected to reach US$ 50 Billion by the end 2018. Driven by the strong growth outlook for end use industries, the domestic market for specialty chemicals is expected to grow strongly, buoyed also by the increased adoption of specialty chemicals and their increased usage in different products categories. Paints coating and construction chemicals, colorants, Active Pharmaceutical Ingredients (APIs), personal care chemicals and flavors & fragrances are the specific segments that are expected to do well in the Indian market.
Indian specialty chemical companies are also strong in the export market with colorants, dyes and pigments being the key export oriented products.Indiaexports specialty chemicals to Asia-Pacific countries where it scores on competitive scale of production.Indiaalso exports to developed countries of Europe andUSA.Indiahas talented, low cost manpower in addition to the low cost of production and this is a definite advantage in the export markets.Indiahas also ensured that it is abreast of global regulations and competitive manufacturing practices. These measures have also enhanced the competitiveness and cost effectiveness of the manufacturers in the local market.
“India Specialty Chemicals Market Outlook 2018” gives comprehensive insight on following aspects related to booming specialty chemical market in India: