Street bullish on specialty chemicals industry amid robust domestic demand

Robust domestic demand, reducing dependence of global peers on China drive earnings outlook

With demand in India improving as businesses return to pre-Covid-19 levels, favourable government policies, and a huge export opportunity, experts say the Indian specialty chemicals industry is in a sweet spot to grow at a healthy double-digit rate over the medium term.
 
“We expect the industry to grow on a compound annual rate of 12 per cent and reach $65 billion by FY25, from the current $32 billion,” said Mitesh Shah, research analyst, ICICI Securities. Despite good gains in the past year, there is room for upside in specialty chemicals stocks.
 
For several years, China dominated global chemicals