Triggered by the economic downturn-slowdowns in key end use industries and inventory adjustments across the supply chain have impacted the growth momentum of the Indian specialty chemicals industry. A revival of domestic demand and competitiveness as a global supply base should enable India to establish itself as an emerging specialty chemicals hub. The big question is when will the revival happen?
Indian specialty chemicals in 2006-07: An unfolding growth story
The Indian specialty chemicals industry estimated at ~ USD 18Bn (including knowledge chemicals) in 2006-07 was an unfolding growth story. While the growth in developed markets of US, Europe and Japan had stagnated, the Indian specialty chemicals market continued to grow and was projected to double over the next five years. So what has changed in the past one year or so? The economic slowdown has adversely affected the growth of several industries across the world. The Indian chemicals industry in general and the specialty chemicals segment in particular, have been no different. In this article we explore whether the economic slowdown has fundamentally changed the script of the growth story or the Indian specialty chemistry industry would continue to chart its growth path.
About the Authors
The authors are associated with Tata Strategic Management Group, Mumbai, India.