India’s specialty chemicals sector, valued at $32 billion, comprises 22% of the chemicals market and over 50% of exports. Growing at a 12% CAGR (2020-25), its top 10 manufacturers saw 20%+ CAGR (FY15-21). The overall chemical industry, worth $220 billion, is projected to reach $300 billion by 2026.
A global broking firm warns that U.S. President Donald Trump’s reciprocal tariffs could impact the profitability of India’s specialty chemicals sector. India imposes a 10% tariff on organic and miscellaneous chemicals, while key exports to the U.S. and EU face average tariffs of 5-6%.
Citi Research estimates a 7% US tariff on Indian exports could impact EBITDA by 12% for PI Industries, 5% for Navin Fluorine, and 4% for SRF. However, the actual impact may be lower due to offsets from tariffs on other exporters and potential price adjustments in the US market.
Analysts suggest India could strengthen its presence in Europe’s chemical market, benefiting cost-competitive exporters. However, challenges extend beyond pricing, as Europe’s chemical industry faces weak domestic demand, further pressured by China’s overcapacity, creating a complex landscape for Indian exporters despite potential opportunities in the region.
Here are the chemical stocks that may affect by U.S. President Donald Trump’s reciprocal tariffs imposed:
1. SRF Ltd
With a market capitalization of Rs 80,627.55 crore, the shares were trading at Rs 2,720.00 per share, decreased around 1 percent as compared to the previous closing price.
2. Navin Fluorine International Limited
With a market capitalization of Rs 20,054.25 crore, the shares were trading at Rs 4,044.00 per share, decreased around 2 percent as compared to the previous closing price.
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3. PI Industries Ltd
With a market capitalization of Rs 48,140.92 crore, the shares were trading at Rs 3,173.05 per share, decreased around 2 percent as compared to the previous closing price.
4. Gujarat Fluorochemicals Ltd
With a market capitalization of Rs 40,174.89 crore, the shares were trading at Rs 3,657.25 per share, decreased around 2 percent as compared to the previous closing price.
5. Anupam Rasayan India Ltd
With a market capitalization of Rs 6,964.70 crore, the shares were trading at Rs 633.55 per share, decreased around 2 percent as compared to the previous closing price.
Written by Abhishek Singh
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