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Chemicals Trade Flow

Segment Petrochemical Building Petrochemical Bulk Chemicals Specialty
Blocks Intermediates (Organics and Inorganics) Chemicals
India’s Net Importer Net Importer Net Exporter
Trade Flow

Some key highlights of India’s trade balance across the segments (INR bn):
66
50
17
Benzene Paraxylene
4

Building Blocks Intermediates Bulk Chemicals Specialty Chemicals
Phenol
Acetic acid
Polyol
-19
Styrene
-24
-29
-65
Source: Edelweiss Research, FICCI

Indian chemicals players leveraging capabilities

Over the last few years, many Indian specialty chemicals players have been focusing on developing a
deep expertise in a particular chemistry and thus developed products with applications across a wide
spectrum of industries. Players have ventured into multiple chemistries to improve their product Over the last few years,
many Indian specialty
chain, which has helped them create business moats backed by superior manufacturing capabilities. chemicals players

Indian chemical players are driving their capabilities through: have been focusing
• Focus on 2–3 niche molecules and their derivatives on developing a deep
expertise in a particular
•
chemistry and thus
• Investments in complementary legs of the value chain to set up a fully integrated
business model developed products
with applications across
•
a wide spectrum of
Key growth drivers for Indian chemicals industry industries

The Indian chemicals industry is witnessing solid structural demand growth environment, which is

Growth in domestic end user industry

Growth of chemicals industry is driven by end user industry. Since many end user industries in India are
likely to grow 11–17%, it would catalyse the growth of domestic specialty chemicals manufacturers
catering to respective end-user industries.

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