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Chemical Industry Of India

The chemical industry is one of the important and fast-growing industries in India. Chemical industry supports primary sectors like oil, agriculture, etc. Due to the high demand for chemical industry stocks, in this article, we've discussed the importance of the chemical industry.

By Anubhav raiPublished 10 months ago 4 min read
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The chemical industry is a significant and rapidly growing industry in India. Several key sectors, such as oil, agriculture, and so on, rely on the chemical industry. Because of the increased demand for chemical industry stocks, we've compiled a list of the best chemical stocks in India in this article.

The development of a country's industrial and agricultural sectors is strongly dependent on its chemical industry. Additionally, it contributes raw materials to downstream industries, such as papers, paints, textiles, soaps, detergents, and others.

Speciality chemicals can be employed alone or in conjunction with other chemicals to efficiently contribute to the manufacture of any product, depending on their uses and efficacy.

Furthermore, this industry covers 80,000+ goods and serves a wide range of end-use application industries. Due to India's proximity to the Middle East, it has the opportunity to gain economies of scale from this region's petrochemical feedstock.

Over 2 million people are employed in India's chemical sector. Speciality chemicals can be further classified based on their application in end-user industries, such as personal care materials, dyes and pigments, agrochemicals, polymer additives, water chemicals, textile chemicals, and application-driven segments, among others.

India accounts for around 16% of the total global output of dye-related products and dye intermediates, making it an important global dye provider. Furthermore, these products are critical to a wide range of other industries, including textiles, food, cosmetics, agriculture, automotive, and aerospace.

Factors to consider before investing in chemical stocks

Despite the fact that chemical stocks in India are expected to grow quickly, there are certain factors that investors should be aware of before investing.

Stiff competition-

Typically, bulk, commodity, and integrated chemicals companies face intense competition since the items they produce are identical to those of their competitors. This can easily lead to a consumer switching from one company to another. To avoid losing clients, the manufacturer who offers the products at a low cost establishes the market price, which every other company in the market must follow.

High capital

To maintain lucrative operations, commodity chemical firms have a large manufacturing plant. Furthermore, they must meet a certain threshold before it can be considered relevant to their sector. As a result, an investor must understand that a commodities and chemical sector must maintain operations with a substantial factory.

Details of the best chemical stocks in India

Alkyl Amines Chemicals Ltd.

Alkyl Amines Chemicals, a small-cap firm, was founded in 1979. The company produces organic and inorganic chemical substances. The company's 5-year CAGR is 55.50% as of April 10th, 2023.

Linde India Ltd.

Linde India, formerly known as BOC India Limited, was formed in 1935. The company produces liquefied or compressed inorganic industrial or medical gases, as well as building utility projects. The company's 5-year CAGR is 54.29% as of April 10th, 2023.

Deepak Nitrite Ltd.

This is a 1970s-era mid-cap corporation. A leading manufacturer of Fine Specialty Chemicals (FSC), Bulk Chemicals and Commodities (BCC), and Fluorescent Whitening Agents (FWA), Deepak Nitrite is involved in the bulk chemical and commodity industries. The company's 5-year CAGR is 47.52% as of April 10th, 2023.

SRF Ltd

This company was established in 1970. SRF produces chemicals and polymers, technical fabrics, and packaging films. The company's 5-year CAGR is 42.14% as of April 10th, 2023.

Navin Fluorine International Ltd.

Navin Fluorine International is a mid-cap corporation founded in 1967. The company specialises in fluorine chemistry, creating refrigeration gases as well as some basic fluoride and organofluorine building blocks. The company's 5-year CAGR is 39.48% as of April 10th, 2023.

Fertilisers And Chemicals Travancore Ltd

One of the country's largest fertiliser companies is Fertilisers And Chemicals Travancore Ltd, founded in 1943. Its main products include ammonia, sulphuric acid, ammonium salt, zinc phosphate phosphate, ammonium sulphate, and caprolactam, as well as various complex fertilizers. The company's 5-year CAGR is 32.91% as of April 10, 2023.

Balaji Amines Ltd.

Manufacturer of Aliphatic Amines and derivatives as well as specialty chemicals founded in 1988. The company's 5-year CAGR is 28.11% as of April 10th, 2023.

Vinati Organics Ltd.

Vinati Organics was established in 1989. The company produces organic and inorganic chemical compounds, as well as specialty organic intermediates and monomers. The company's 5-year CAGR is 31.18% as of April 10th, 2023.

Solar Industries India Ltd.

Solar Industries India Ltd., founded in 1995, is one of the world's most comprehensive Ammunition facilities. The company specializes in industrial explosives as well as defense and military applications. The company's 5-year CAGR is 28.66% as of April 10th, 2023.

Future of the Indian chemical industry

The chemical sector is the most diverse, with over 80,000 commercial chemical products. It is one of India's largest industries, worth over $100 billion. The chemical sector is predicted to increase to $304 billion by 2025. It should be remembered that in 2017, the industry contributed over $2.6 trillion to our country's GDP, generated $ 30 billion in taxes for the government, and employed over 2 million people across India.

Overall, the chemical sector is expanding at a compound annual growth rate of roughly 8%. Chemicals are in high demand in the food processing, pharmaceutical, building, automobile, and other industries.

Even while demand is rising and the chemical sector is expanding, it is still not as established as its counterparts in other parts of the world. And it may take some time for the industry to become a worldwide leader.

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About the Creator

Anubhav rai

StockDaddy is India's leading stock learning platform, making it possible for users around the nation to grasp the stock market skills with an ease of choices.

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