Indian Chemical Sector - Catalysts For Growth In Place: HDFC Securities

Our positive stance on the sector is backed by its strong growth, aided by diversity in terms of chemistries and/or technologies.

Chemicals solutions in test tube sit inside a R&D lab. (Source: freepik)

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HDFC Securities Institutional Equities

The Indian chemical industry continues to be an attractive hub of opportunities, even in an environment of global uncertainty. The uniqueness of the chemical industry is that it requires both the creation of tangible assets and technical manpower.

We believe domestic chemical companies have abundant opportunities to partner in technology. Chemical companies may be able to take advantage of a variety of opportunities by strategically investing in research and development.

New opportunities in the form of collaboration with technically advanced global companies could emerge in the industry. Instead of being sold based on their chemical identity, specialty chemicals are frequently sold based on how well they perform in the intended application. Therefore, the business requires significant application development and R&D investments to stay relevant.

The chemical industry’s growth is not hostage to any one economic parameter or any one end-user industry. Rising domestic demand and the need to evolve have forced domestic chemical companies to expand their capacities to remain competitive.

Click on the attachment to read the full report:

HDFC Securities Institutional Equities Indian Chemical Sector Check.pdf
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