The pandemic highlighted the value of several Indian enterprises. One of them is the chemical industry, which continues to be a top priority for supporting, among many other things, food processing, pharmaceuticals, and agriculture. Due to this realisation, many chemical industry stocks in India have become multibaggers in the past two years. On a worldwide scale, India is dominant in chemical imports and exports. India is now ranked 8th in terms of importance and 14th in terms of exports worldwide. Regarding individual market segments, India is the world’s fourth-largest producer of agrochemicals. The rising demand for chemical products in India results in a rise in chemical stocks.
The Chemical Industry in India
The chemical industry in India is a crucial contributor to the country’s economy and has witnessed significant growth in recent years. It is projected to reach a market size of ₹3,375,800 crores by 2025, growing at a rate of 11.6%. The industry is divided into two main segments: basic and speciality. The primary chemicals segment includes organic and inorganic chemicals, while the speciality chemicals segment includes agrochemicals, pharmaceuticals, and fine chemicals.
The National Chemical Policy, National Manufacturing Policy, and the Atmanirbhar Bharat Abhiyan (self-reliant India project) are only a few of the measures the Indian government has launched to encourage the expansion of the chemical industry. The government has also introduced various schemes, such as the Production Linked Incentive (PLI) scheme, which provides financial incentives to companies for manufacturing chemicals domestically.
The major players in the Indian chemical industry include Reliance Industries, Indian Oil Corporation, and Tata Chemicals. The sector faces challenges such as increasing competition from China, stringent environmental regulations, and volatility in raw material prices. Given the nation’s wealth of natural resources, skilled labour force, and rising demand from numerous sectors, including agriculture, medicines, and construction, the chemical industry in India is primed for significant expansion. Let us now look at the Best Chemical Stocks to buy in India.
Which chemical stocks should you buy in 2023?
The following are some of the best chemical stocks to buy in 2023:
The long-established chemical manufacturer Tata Chemicals makes fertilisers, salt, soda ash, and sodium bicarbonate. The business is well-known for its efforts in sustainability and for using ethical and clean business practices. The company, which boasts Asia’s largest saltworks plant, is the leader in salt manufacturing and focuses on innovation at every stage of its operations. Additionally, it ranks third internationally in the production of soda ash.
Ganesh Benzoplast Limited
The Indian company Ganesh Benzoplast Limited offers climate-controlled storage facilities for bulk liquids and chemicals at several ports in India. The business produces and exports various specialist chemicals, food preservatives, and industrial lubricants. It operates through two segments: the Chemical Division and the Liquid Storage Terminal (LST) Division.
Chemfab Alkalis Limited
Chemfab Alkalis Limited (CCAL), which has a long history of environmental responsibility and workplace diversity, constructed the first membrane cell plant to make chloralkali in India. CCAL was one of India’s first big chemical companies to successfully incorporate and apply new technology while maintaining its position as a leader. Since its start, CCAL has made considerable investments in process and quality development, maintaining its operations at the cutting edge of technology.
Super Crop Safe Limited
By the Companies Act of 1956, Super Crop Safe Limited was incorporated as a private limited company in Gujarat on February 9, 1987, to expand as a trading business. A special resolution was approved on January 16, 1992, changing the company’s status. On March 20, 1992, the Gujarat Registrar of Companies issued a fresh certificate of incorporation confirming the name change. The business started selling a variety of pesticides made by Ms Super Industries, one of its group companies. It is a well-known and leading chemical company in India.
Deepak Nitrite Limited
Deepak Nitrite Limited is a top producer of primary and speciality chemicals that operates in three areas of chemical production. These include fluorescent whitening agents, fine and speciality chemicals, and base chemicals. The company’s product offerings include acetone, phenol, aniline, sodium nitrite, cumene, and sodium nitrate. The company distinguishes itself by providing specialised production services for completed chemical goods due to its significant contribution to environmentally sustainable chemical production, water recycling initiatives, and carbon emission reductions.
The chemical industry in India is a crucial sector of the economy and encompasses a wide range of products. It plays a significant role in the country’s industrial and agricultural development and has witnessed considerable growth in recent years. Investing in chemical stocks in India can allow investors to benefit from the industry’s growth. Investors interested in investing in chemical stocks in India should conduct thorough research and analysis of the companies and the drive to make informed investment decisions. They should also consider the risks associated with investing in stocks and have a long-term investment horizon.