The chemical industry of India is one of the primary constituents of the Indian economy. It accounts for about approximately 2% of India’s Gross value addition and over the period of last five years it has seen a growth of 13 to 14%. The market capitalisation of the chemical industry has also increased mainly due to high domestic consumption, diversified industry and promising export potential in the industry.
The Indian government also recognises the chemical industry as a growing potential as it has 100% foreign direct investment permitted. Also, manufacturing of most chemical products has been de-licensed. The chemical industry of India comprises of large scale as well as small scale sectors and currently there are around 70,000 chemical industries in India. The government plans to increase the investment in this sector by 25% by the end of the year 2025. Here is a list of top 10 best and largest chemical companies in India by market cap in 2018.
10. United Phosphorus Limited
Has a market capital of approximately Rs 36,910 crores. It primarily provides crop protection solutions and is also engaged in the activities of agrochemicals, industrial chemicals, chemical intermediaries and special chemical products. The revenues of the UPL have been increasing throughout the year 2016. The market share price of this company was Rs 468 at the start of 206 and ended at Rs 646 per share by the end of 2016. By the year ending March 2017, they expect the earning per share to be Rs 35.33 for its shareholders.
9. Pidilite limited
Has a market capital of approximately Rs 35,836 crores. Pidilite is majorly manufacturer of adhesives, construction chemicals, art materials and other industrial chemicals. It is famous for the Fevicol range of adhesives. This company is the market leader in adhesives and construction chemical since last two three decades. The company reported revenues of Rs 12.33 billion in quarter 4 of 2017 and reported Rs 16.84 billion in Q1 2018.
8. Tata Chemicals
Has a market capital of approximately Rs 15,336 crores. Tata chemicals are part of the $100 billion Tata group and focuses majorly on the day to day essentials of LIFE i.e. Living, Industries and Farm essentials. It is the world’s second largest producer of soda ash and provides facilities majorly in Asia, Europe, Africa and North America.
7. Gujarat Fluorochemicals
Has a market capital of approximately Rs 8,442 crores. This company is part of the $3 billion INOX group of companies. Gujarat Fluorochemicals is mainly engaged in import and export of polymers and organic and inorganic compounds. It also engages in the activities of marketing, processing and storage of the same products. The company is reputed in providing after-sale service and technical support to its German and EU clients. The company has a client base worldwide and order book is also heavily loaded.
6. Solar Industries India
Has a market capital of approximately Rs 6,954 crores. Solar industries India is mainly engaged in manufacturing of explosives and accessories related to explosives around the globe. The company share price has seen an increasing trend over past few years. Currently, the market share price stands at Rs 786 per share.
5. Aarti Industries
Has a market capital of approximately Rs 6,277 crores. This company majorly deals with supply of dyes, pigments, agrochemicals and rubber chemical products globally. They have become world-class experts in the manufacture of chemical products. They have clients that are spread across nearly 60 countries. In addition to having a great pan India presence the company has a major presence in US, Europe, Middle East and Japan as well.
Has a total market capital of approximately Rs 5,902 crores. The share price of BASF India started off with Rs 63 at the start of the year 2016 and ended with Rs 88 per share and continues to increase further. BASF is mainly engaged in production of innovative products and provide solutions to every industry like agriculture, pest control, bio technology etc. the company is committed to sustainable development and to the manufacture of their products, and they aim to fulfill their commitment towards the society and ecology.
3. TCI (Thirumalai Chemicals Limited)
Is one of the leading manufacturer of Speciality and Industrial Chemicals for a wide range of Global end users. The company is based in South India. The company was founded in 1976 and since then has grown immensely and to date has become one of the most respected enterprise. Among core products the company is one of the largest producers in the world. The company not just have a wide distribution channel in India but also in North America and Euprope as well.
2. Linde India
Has a total market capital of approximately Rs 3,405 crores. This company is a world company for gases and engineering and healthcare. In the year 2010 financial year, the company reached sales of EUR 12.868 billion and geared for sustainable earnings growth. The share price of Linde India closed at 390 per share at the end of December 2016.
1. Navin Fluorine
Has a total market capital of approximately Rs 2,977 crores. This company is part of the Arvind Mafatlal Group (AMG). Navin Fluorine Company is a pioneer in manufacturing of refrigerant gasses in India. They have over 45 years of expertise in inorganic fluorine chemistry and are large scale manufacturers of fluorine-based intermediaries. From the start of the year 2017, the share price of the company has been increasing and today stands at Rs 3,509 per share.
The increasing growth of market capital of the chemical industries in India has forced the government to increase its investments in these areas. These companies are also offering new products depending on the changing requirements of the markets and customers. The improved research and development technologies in India have further developed microbial decolonisation and degradation activities for textiles. Also, further exploration of bio diversity for natural dyes and Eco-friendly methodology has been a prime focus. Various programs such as ‘waste to wealth’ have been launched by the chemical industry to recover recyclable water from distillery effluents.
To sustain competition with outside India, the companies in India need to invest in further exploring of right product mix and make profits using the available resources in India. As per recent reports, the chemical industry foresees that western countries will expand their presence in Asia and India can be one of the major hubs for the same.