Page 74 - Edelweiss India Conference 2022 FLIPBOOK

THE NEW EDGE

Double-digit growth across end-user segments

Presence of End Market
Market size 2014-19 2019-25 Entry Product China's
Segment Scaled up of growth
(USD bn) CAGR(%) CAGR(%) Barriers Specialisation Dependence
Indian players potential
Agrochemicals 9.2 10.0 12.0 H M H M H
F&F and Nutra Ingredients 2.4 16.1 17.1 H H H H M
Dyes and Pigments 7 7.3 10.0 M M H M H
Personal Care Chemicals 1 15.5 15.0 H H L H M
Surfactants 2 6.4 11.0 M M L M M
Textile Chemicals 1.8 10.4 11.5 M M L L M
Construction Chemicals 1.4 13.5 15.0 H M L H H
Polymer Additives 1.3 12.8 10.0 L M M M H
Water Chemicals 0.8 14.9 15.0 H M L H M

Source: FICCI, Industry, Edelweiss Research
Import replacement

India is net importer of chemicals with imports of USD24bn in 2018–19 (DGCI provisional estimates).
China accounts for ~24% of these imports. With the government’s thrust on import replacement,
primarily to reduce its dependence on China, there are substantial opportunities in chemicals given
the huge import replacement opportunity. In agrochemicals and pharma intermediates and many
basic chemicals building blocks, Indian players are investing heavily with an eye on replacing such
imports.

India Chemicals: Exports-Imports
25000

20000
15000

10000

5000
0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Export Import
Source: Edelweiss Research, DGCI , Organic, Inorganic and agrochemicals

Export opportunity

In light of the strengthening outsourcing wave globally, primarily in the EU and the US, to reduce
costs and become more competitive in global markets, companies continue to evaluate outsourcing
opportunities. Global pharma, agrochemicals, polymer players, etc. discontinue manufacturing of

pigments, India has established its global leadership and continues to gain share in other specialty
chemicals from outsourcing, mainly in agrochemicals.
India clocked chemicals exports (of inorganic, organic and agrochemicals) CAGR of 33% from 2016–
17 to 2018–19, contributing USD13.5bn (Source: DGCI). The ministry concerned is targeting doubling
of these exports by 2023–24.

72 Edelweiss Securities Limited