THE specialty chemical market is likely to clock a compounded annual growth rate of 12-13 per cent over the next five years, with the intensity of specialty chemicals in end-use domestic markets expected to rise, a report has said. The closure of plants in European Union and China, owing to increasing environmental concerns, has opened doors for Indian manufacturers to invest further in specialty chemicals, according to a report by rating agency Crisil. “While India also faces threat from environmental concerns, the threat is limited to smaller players and shall serve as an opportunity for larger players to capture the market,” it said.
Some of the large players have established themselves in global markets like the EU and US and have active export revenue share which will help them seize the opportunity, it said. Global players are looking to diversify the supply risk, thereby improving export opportunities for Indian players, Crisil added. It noted that prospects of the domestic chemical industry are intrinsically linked with the overall growth in the economy as well the export market. India is a net exporter in segments such as dyes and pigments, which is expected to continue.