The chemical industry in India is one of the most evolving in the world. In the year 2020, the industry was ranked fifth globally with regard to its revenue. In India’s chemical industry, there are 80,000 or more different products, so it is also one of the most diversified chemical markets on the planet.
Additionally, the industry provides end-use industries with raw materials, acting as a backbone in the process of development of the country at large. From the financial years 2016 to 2020, the foreign investment in the Indian sector of chemicals stood at over 1 billion U.S. dollars annually, although this decreased slightly by 2022. The best chemical stocks in India are worth a look if you are interested in diversifying your portfolio with various sectoral stocks.
An industry that is often overlooked where investment is concerned, India’s chemical industry is rich with growth prospects, both for the companies that comprise it and for investors. The industry plays a vital role in India’s GDP and produces a wide variety of chemicals which include basic inorganic chemicals, petrochemicals, speciality chemicals and last but not least, agrochemicals. Recently, the Indian government has made efforts to promote the industry’s growth. This has resulted in investment in the sector, both from overseas and from within India’s borders. Consequently, investors may find that the best chemical stocks in India offer ample opportunity for investment and growth.
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Broadly speaking, chemicals may be categorized into base chemicals and specialty chemicals. In India, the majority of chemicals that are produced are base chemicals. These are also known as “bulk” chemicals and are manufactured on a massive scale. Base chemicals are used as intermediary chemicals for the production of other chemicals. Speciality chemicals are those that are derived from base chemicals. Also known as “performance” chemicals, these include paints, agrochemicals, adhesives, fragrances, flavors, and so on.
In yet another category of chemicals, there are also agrochemicals. These are the chemicals that protect agricultural harvests from pests and insects. They comprise various pesticides and insecticides. United Phosphorous Limited is one of the top players in the agrochemical industry segment. Furthermore, India is a large exporter of agrochemicals.
Investors have a wide choice among the best chemical stocks to buy in India as the sector is vast, and many companies in the industry show prospective investment potential.
The growth and development of the chemical industry in India present investors with opportunities to invest in leading chemical companies. Furthermore, the Indian government has been promoting the development of companies in the chemical industry, spurring advancement and expansion in this once-overlooked investment source. As an investor, you can check out the following list of the top chemical stocks to buy in 2023 and invest according to your requirements:
A leading chemical manufacturing company producing basic and speciality chemicals, Deepak Nitrite Limited operates three areas of chemical production. These comprise Base Chemicals, Fine & Specialty Chemicals, FWA, or Fluorescent Whitening Agents. The product portfolio of the company includes acetone, phenol, aniline, sodium nitrite, cumene and sodium nitrate. The company also stands out for offering custom-made manufacturing services in terms of finished chemical products. The company may be one to consider for investment as it plays a large role in responsible chemical production and sustainability of the environment with recycling water projects and reductions in carbon emissions.
Tata Chemicals is a long-established chemical company producing salt, soda ash, fertilisers and sodium bicarbonate. The company is popular for its sustainable efforts and green and clean business practices. The company is focused on innovation at every step of its operations and is the leader in the production of salt in Asia, boasting Asia’s largest saltworks plant. It is also the third-largest soda ash producer globally. With a focus on expansion, both in India and abroad (with an already-established global presence), investors may want to grab some investment opportunities in this company which is clearly at the top of the list of the best chemical stocks in India.
An agrochemical company that produces and markets products used in the protection of crops, UPL also manufactures some speciality chemicals. The focus of the company is on sustainability with innovation, providing tailor-made chemical pesticides and herbicides. In 1975, the company ventured into the export market and has never looked back since. This is a constantly evolving company with years of backing as a big player in the agrochemical industry.
Aarti Industries is a prime manufacturer of chemicals of a special kind. It is also a top company that manufactures pharmaceutical intermediary chemicals. Aarti Industries is focused on research and development activities with heavy investments in these and its manufacturing plants. Products that the company manufactures are diverse, ranging from pigments and dyes to agrochemicals and surfactants. The company’s presence in India and overseas is well-established. Furthermore, the company has seen success consistently. As an investor, you may find some of the best chemical stocks in your investment here.
A diversified chemicals company which deals with the production of fine chemicals, agrochemicals and segments in custom synthesis, PI Industries owes its success to its advanced research and development facilities. The company manufactures insecticides, herbicides and pesticides and has a domestic and global presence.
If you are interested in investment in the chemical industry, you will have to open a demat account with a reliable brokerage. If you already have one, you can do some research on any chemical company and potentially find one that suits your requirements for investment. While you are hunting for some of the best chemical companies to expand your financial portfolio, why not look into any upcoming IPO as well? You will find that investing in diverse segments of industries and sectors gives you true portfolio diversification and a hedge against risks that come with investing.