Indian Speciality Chemicals
by Axis Securities Ltd (ASL) Research
Speciality chemical manufacturers that benefit from demand from end-user industries and government initiatives
About the smallcase
- Speciality chemicals are specific items that are used in low quantities for the production of high-value goods in variety of industries viz, textiles, Tyre, adhesives, pharmaceuticals, agro-chemicals.
- Indian middle class is leading a dramatic change in demand for items like food, clothing and transportation, which is primarily driving demand for speciality chemicals
- Production of speciality chemicals allows customer stickiness and leads to high revenue predictability.
- Since price of speciality chemicals is determined through negotiations, increase in raw material costs can also be passed on to protect margins
- The downturn in China's chemicals and specialty chemicals market in the recent years, has come as a boon for the Indian chemicals and specialty chemicals industry.
- China's specialty chemicals market has seen a downturn in recent years, for more reasons than one, most prominent being the introduction of stringent environmental norms, which has led to the shutdown of several chemical plants.
- Over the last five years, the labour cost in China has more than doubled compared with India, rendering Chinese manufacturers' uncompetitive vis-à-vis India in labour cost.
- This smallcase comprises companies manufacturing speciality chemicals that are used in a wide range of industries like automobiles, pharma, textiles, food processing, agro chemicals, etc
Live Performance
Unlock all metrics
Login to see the live performance and return
Understand smallcase costs and returns
Understand smallcase costs and returns
About the Manager
People also viewed
smallcase is played out
This smallcase is not being tracked and will not have any further rebalance updates
Reason for played out:
Indian Speciality Chemicals - smallcase will be discontinued for fresh buy from ASL portal, owing to below-par performance vis-à-vis the corresponding benchmark index and the theme taking hit because of economic slowdown
Min. Amount
₹ 30,985
Minimum Investment Amount
₹ 30,985