Shuchi Nahar's Weekend Blog!

CAPEX Acceleration in Indian Chemical Companies -  USD 300 bn  domestic market by 2025 Twitter Handle: @shuchi_nahar India’s chemical industry was estimated to be worth USD 178 billion in FY 2019-20 and has a significant potential to reach USD 300 billion by FY 2024-25. In terms of demand, the industry has grown at approximately 1.3 times the country’s average GDP growth in the last five years and shows a strong linkage with its GDP. Indian specialty chemical sector has grown at 12%+ in the last five years and is well poised to expand its global market share to 7-8% from 4% in the coming years. The structural drivers are in place like global best practice manufacturing standard and R&D capability along with government impetus of make in India policy with pro-growth policies will act as a further catalyst for growth. Further, a global MNC looking at China Plus one strategy will help Indian incumbents to gain market share. In the short to medium term, supply disruptions emerging

Recent disruption in China - Impact on Indian Chemical Companies Twitter Handle: @shuchi_nahar Specialty Chemical Article: https://myweekendspot.blogspot.com/2021/07/speciality-chemicals-market-size-demand.html Government scheme to boost: https://myweekendspot.blogspot.com/2021/07/government-initiatives-to-boost-growth.html Indian specialty chemicals companies are poised to ride tailwinds from macro drivers including ‘China+1’, import-substitution, growing costs within China (capital, operational, compliances), and currency benefits.  Recent disruptions in China will cause medium-term challenges for downstream producers while benefiting base chemical suppliers. More importantly, these frequent supply disruptions in China further strengthen the case for quality Indian players in the chemical domain. Growing import substitution by local industry makes a case for strengthening volume growth for base chemical/intermediate suppliers.  Recent disruptions in China (electricity shortages,

Ethanol - Global Production, Capacity, Impact, and Ethanol Blending Trend Twitter Handle: @shuchi_nahar In continuation with the previous Ethanol blog here is an extended version with more new Insights! With a view to give a boost to the agriculture sector and to reduce environmental pollution, the government of India had launched pilot projects in 2001 wherein, 5% ethanol blended petrol was supplied to retail outlets. Apart from field trials, R&D studies were also simultaneously conducted. The success of these field trials and studies paved the way for EBP in India. The Government of India vide its Resolution dated 3rd September 2002 decided to launch Ethanol Blended Petrol (EBP) Program in January 2003 for sale of 5% ethanol blended petrol in nine States and four UTs.   The global production of fuel ethanol touched 110 billion liters in 2019 showing an average growth of 4% a year per year during the last decade. The United States of America (USA) and Brazil contribute for 92

India's Growth Trajectory in Chemical Sector supported by Government Initiatives Twitter Handle: @shuchi_nahar The global chemicals market is valued at around USD 4,738 billion and is expected to grow at 6.2% CAGR reaching USD 6,400 billion by 2024. The Indian chemicals market is valued at USD 166 billion (~4% share in the global chemical industry) and it is expected to reach ~USD 280-300 Bn in the next 5 years, with an anticipated growth of ~12% CAGR. The specialty chemical industry forms ~47% of the domestic chemical market, which is expected to grow at a CAGR of around 11-12% over the same period. Stronger growth lead by Government Initiatives India’s growth story was largely positive based on the strength of domestic absorption and the economy was registering a steady pace of economic growth pre-Covid. Moreover, its other macroeconomic parameters like inflation, fiscal deficit and current account balance had exhibited distinct signs of improvement. Though the pandemic has l