CRISIL Research projects the chemical industry’s revenue to rise 14-17 per cent year-on-year (YoY) in the current fiscal year (FY23), driven by better performance by specialty chemicals, followed by polymers and agrochemicals. Micro, small and medium enterprises (MSMEs) in the chemical industry are projected to grow 12-15 per cent.
MSMEs’ profitability margins are likely to be more constrained than those of large players, owing to rising material cost, higher working capital requirements, escalated freight cost and limited ability to pass on higher costs to customers. Making up 28-30 per cent of the sector, MSMEs mainly cater to dyes and pigments, agrochemicals and certain niche specialty chemicals.
MSMEs’ double-digit revenue growth will be powered by improved price realisation. The specialty chemical segment is