*Indian speciality chemical makers* are expanding on the back of rising domestic demand, China’s crackdown on polluting units and the government’s thrust on Make in India initiative.
The companies that make chemicals used in the manufacture of items like dyes, pigments, and agro- and construction chemicals registered strong earnings growth over the past five years, according to Bloomberg data.
And rising demand for these companies has led to a corresponding increase in their utilisation levels. *Fine Organic Industries Ltd*., India’s largest manufacturer of oleochemical based additives, for instance, said its utilisation rose to nearly 95 percent in the quarter ended December.
The companies also said in their recent earnings calls that they anticipate strong growth in the next few years and are investing to ramp up their capacities.
*View: Fine organics momentum can be continue already given good return around 60% in past 6 months*