India ranks as the 6th largest chemical producer globally and holds the 3rd position in Asia, contributing ~7 percent to the nation’s GDP. The Indian chemical industry is currently valued at around $220 billion and is projected to grow to $300 billion by 2030 and $1 trillion by 2040.
On the global stage, India is the fourth-largest producer of agrochemicals, following the US, Japan, and China. The country also contributes about 16-18 percent to the world’s production of dyestuffs and dye intermediates. India’s colourants industry has established itself as a significant global player, holding an estimated 15 percent share of the international market.
By 2025, the Indian chemicals and petrochemicals sector is expected to attract investments totalling Rs. 8 lakh crore. Within the global $4 trillion chemical industry, specialty chemicals represent a 20 percent share. India’s specialty chemicals market is anticipated to grow at a CAGR of 12 percent, reaching $64 billion by 2025.
To support this growth, the Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIR) policy has been launched, focusing on the development of integrated manufacturing hubs. These hubs are projected to bring in investments of around Rs. 20 lakh crore by 2035. As the Indian chemical industry moves toward its $1 trillion target by 2040, here are a few chemical stocks to watch in this evolving sector:
Himadri Speciality Chemical Limited
With a market cap of Rs. 22,255 crores, the stock moved up by around 4 percent on BSE to Rs. 456.1 on Wednesday. Himadri Speciality Chemical Limited is primarily engaged in the manufacturing of carbon materials and chemicals.
In June 2023, Himadri Speciality Chemical invested Rs. 58 crore to acquire a 12.79 percent equity stake in Sicona Battery Technologies Pty Ltd, based in Sydney. The company’s key growth drivers include the development of Lithium Iron Phosphate (LFP) Cathode Active Material, the acquisition of Birla Tyres, expansion in Speciality Carbon Black, introduction of High Value-Added Speciality Products, and strategic investments in Sicona and Invati.
Himadri plans to gradually ramp up production of LFP Cathode Active Material to 2 lakh MTPA, in phases over the next 5-6 years. This capacity will support 100 GWh of lithium-ion battery output. The company is setting up the world’s first commercial-scale LFP Cathode Active Material plant outside China, aimed at serving both domestic and global markets.
A brownfield expansion is underway to add a new 70,000 MTPA line for speciality carbon black, which will raise the total capacity to 1.3 lakh MTPA—making it the world’s largest single-site facility for this product. The project entails an estimated capital expenditure of Rs. 220 crore and is expected to become operational by Q3 FY26.
In Q4 FY25, the company reported around 3.6 percent YoY growth in its revenue from operations to Rs. 1,135 crores, while the net profit increased by nearly 35 percent YoY to Rs. 155 crores.
Archean Chemical Industries Limited
With a market cap of Rs. 7,697 crores, the stock moved up by around 1 percent on BSE to Rs. 625.1 on Wednesday. Archean Chemical Industries Limited (ACIL) is a specialty chemicals manufacturing company engaged in the production and supply of industrial salt, liquid bromine, and sulphate of potash (SOP).
ACIL is a leading manufacturer of speciality marine chemicals in India and the largest exporter of Bromine and Industrial Salt in India. In Q4 FY25, the company’s exports accounted for nearly 77 percent of the total operating revenue, while domestic sales contributed the remaining 23 percent.
Looking ahead, ACIL’s growth will be driven by a combination of organic and inorganic expansion initiatives. Key strategic priorities include the development of a Silicon Carbide Wafer Manufacturing Facility under its semiconductor initiative and entering the energy storage sector through investments in off-grid energy solutions.
In Q4 FY25, the company reported around 22 percent YoY growth in its revenue from operations to Rs. 346 crores, while the net profit decreased marginally by nearly 7 percent YoY to Rs. 54 crores.
Navin Fluorine International Limited
With a market cap of Rs. 23,480 crores, the stock moved up by around 3 percent on BSE to Rs. 4,735 on Wednesday. Navin Fluorine primarily focuses on fluorine chemistry – producing refrigeration gases, inorganic fluorides, specialty organofluorines and offers Contract Research and Manufacturing Services.
It is India’s first and only manufacturer of hydrofluoroolefins (HFO) and ranks among the country’s largest producers of inorganic fluorides, anhydrous hydrofluoric acid (AHF), and diluted hydrofluoric acid (HF).
Additionally, the company is also a leading provider of advanced CDMO services in the fluorination segment, and operates India’s only high-pressure fluorination plant that is cGMP-compliant, to support its CDMO business.
In Q4 FY25, the company reported around 16.4 percent YoY growth in its revenue from operations to Rs. 701 crores, while the net profit increased by nearly 35 percent YoY to Rs. 95 crores.
Tata Chemicals Limited
With a market cap of Rs. 23,440 crores, the stock moved up by around 2 percent on BSE to Rs. 932 on Wednesday. Tata Chemicals Limited deals in basic chemistry products and specialty products, with a global presence in the US, UK and Kenya, that manufactures and sells soda ash, industrial salt and related products. Tata Chemicals plans to invest about Rs. 8,000 crore over the next 2-3 years, focused on sustainable business expansion.
During FY25, Tata Chemicals has commissioned new capacity at its Mithapur facility, adding 230,000 tonnes of soda ash and 140,000 tonnes of bicarbonate, both of which are now fully operational. Additionally, quarterly sales volume of FOS rose significantly to 817 MT compared to Q4 FY24. Management anticipates continued annual demand growth of 5-6 percent, driven by strong momentum in the glass and other segments.
For FY26 and FY27, the company expects capex to return to historical levels, with a projected sustenance capex of around Rs. 550–600 crore. Additional investments are expected to be limited, including Rs. 18 crore for a prebiotics plant and ~Rs. 60 crore for expansion activities in Kenya.
In Q4 FY25, the company reported around 1 percent YoY growth in its revenue from operations to Rs. 3,509 crores, while the net loss decreased by nearly 94 percent YoY to a loss of Rs. 49 crores.
Written by Shivani Singh
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