For more than two decades, India has nursed ambitions of challenging China’s manufacturing supremacy, yet these dreams remain unfulfilled. China’s pervasive dominance in numerous sectors has dissuaded importers from seeking alternative suppliers. However, in the chemicals sector, India had a significant opportunity that could have reshaped the fortunes of its companies—an opportunity it lost.
Between 2015 and 2017, China’s chemical manufacturing capacity experienced a notable decline, with 40% of the facilities closing due to stringent environmental regulations. The onset of the US-China trade war exacerbated this situation, providing a favourable window for Indian companies. The surge in valuation of Indian chemical firms during this period mirrored the optimism of the moment. The collective market cap of 198 listed companies soared by 54.4% from ₹2,85,157 crore in 2014–15 to ₹4,40,482 crore in 2016–17, according to data from Ace Equity.
India ranked fourth in Asia and sixth in the world, with chemicals sales (excluding pharmaceuticals) valued at 101 billion euros in 2017, according to European Chemical Industry Council Report, 2018. Despite this, it failed to capitalise on the market share relinquished by China.
Prathamesh Sawant, analyst at Axis Securities, says there was a phase when Chinese chemical companies were witnessing a slowdown because of the Covid-19 pandemic and hiccups in the domestic economy. “During China’s slowdown, India saw traction in chemical exports due to global supply situation favouring Indian players, which led to optimism surrounding India’s chemical industry as an alternative to China. However, that transition has been slower than expected. The sector has faced headwinds in the past seven to eight quarters,” he says.
Pandemic and After
Denne historien er fra May 2024-utgaven av Outlook Business.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra May 2024-utgaven av Outlook Business.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Adani After Hindenburg 2.0
In the days following Hindenburg's second shot at Gautam Adani, this time with Sebi chief Madhabi Puri Buch in the mix, Adani stocks held steady. But the trust of institutional investors remains to be regained
Where Are The Jobs?
India is staring at a crisis: the cohort of unemployed is growing. But the problem is deeper than mere lack of jobs. So Sitharaman's solutions in Budget 2024 will not be the silver bullet for the crisis
'STAINLESS STEEL SECTOR PROJECTED TO GROW AT 8-9%"
Stainless steel, known for its resistance to corrosion, recyclability and strength, has found its applications across sectors-from kitchen utensils to towering skyscrapers. Abhyuday Jindal, MD, Jindal Stainless discusses five drivers of growth in the stainless-steel sector of India
Harnessing Technology for India's Sporting Future: Insights from IITM
We wanted to bring the rigour of IIT Madras to revolutionise the field of sports as well. We wanted to use the core strengths of IIT Madras - high quality research and development as well as teaching.
Dream11: Driving Fan Engagement and Innovation
Dream11, founded by sports enthusiasts Harsh Jain and Bhavit Sheth, has grown into the world's largest fantasy sports platform by focusing on personalisation, innovation, and a deep understanding of user needs. In an exclusive interview with Outlook Business, Rahul Mirchandani, Chief Product Officer at Dream11 & Dream Sports, speaks about the company's unique approach to product development and user engagement. With over 220 million users, Dream11 emphasises personalisation, user engagement, and cutting-edge technology.
Sports Science Holds The Key to Olympic Wins
Director-in-charge and Head of National Centre for Sports Science and Research (NCSSR) Dr. Bibhu Kalyan Nayak speaks to Outlook on the importance of sports science in modern-day sports training.
Baller Athletik: Pioneering the Future of Sportswear Technology
How Baller Athletik is enhancing athletic performance and recovery with simple, yet powerful wearable tech.
Integrating Technology and Hands-on Training: The Future of Sports Education in India
The first-ever Sports Tech Conclave in India highlighted the importance of combining e-learning with practical experience to shape the future of sports education.
PASSING ON THE LEGACY
It is hard to achieve worklife balance if you are running a family business. For George Alexander Muthoot, managing director of Muthoot Finance, board meetings are the way to spend time with family
Pioneering a Sports Revolution: A Deep Dive into SFA's Vision and Impact on Indian Youth
In an exclusive conversation, the founders of Sports For All (SFA) share their journey of transforming grassroots sports in India. Rishikesh Joshi, a national-level swimmer, and his co-founder Vishwas Choksi, driven by their shared passion for sports, launched SFA with the vision of making sports accessible and enjoyable for every child in the country. From leveraging cutting-edge technology to ensuring inclusivity, SFA is not just nurturing future champions but also revolutionizing the sports landscape in India. This discussion delves into their inspiration, the rapid growth of SFA, and their ambitious goals for the future, shedding light on how they are shaping the next generation of Indian athletes.