Chemicals

India’s chemical industry is one of the fastest growing in the world and is currently ranked the third largest in Asia and sixth globally in terms of output after the US, China, Germany, Japan and Korea.

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The chemical sector, which is knowledge- and capital-intensive, is the mainstay of industrial and agricultural development, and has application across various industries such as textiles, papers, paints, soaps, detergents, and pharmaceuticals, among others.

The chemical industry can be classified mainly into three segments, viz. basic, specialities and knowledge chemicals. (1) Basic: Petrochemicals, fertilizers, inorganic chemicals, alkalies, chloralkalies, aromatics, thermoplastics, thermosets and other industrial chemicals. (2) Speciality: Adhesive, sealant, catalysts, industrial gases, paints and coating, pharma additives, lubricants, water treatment chemicals, plastic additives (3) Knowledge: Agrochemicals, pharmaceuticals, biotechnology. We can further classify the industry product-wise, which comprise of alkali chemicals (soda ash, caustic soda, liquid etc.), inorganic chemicals (aluminum fluoride, calcium carbide, carbon black, etc.), organic chemicals (acetic acid, acetone, phenol, methanol, etc.), pesticides & insecticides and dyes & dyestuffs.

For the purpose of sector analysis, we have analysed 70 companies in the chemical sector according to their market cap. The overall revenue of the sector increased by 18.3 per cent and PBIT also increased significantly by 18.8 per cent during FY19. Also, the net profit of the overall industry jumped significantly by 13.9 per cent in FY19.