India's specialty chemicals sector has been resilient even in the face of pandemic-wrought challenges in fiscals 2020 and 2021. In current fiscal, the sector is set to rebound to double-digit revenue growth.
While strong demand from end-user segments will catalyse performance on the domestic front, export demand continues to remain strong riding on China +1 strategy being adopted by large global customers.
Raw material prices, which had moderated over the past two fiscals, have been rising on the back of higher prices of crude and its derivatives. However, the cost-plus-pricing model followed by players will restrict any sharp moderation in profitability. That said, other challenges such as logistics issues and their impact on margin, will bear watching.
Will players embark on an increase in capital spends? If so, how will they fund this expansion? Will they be able to continue to manage working capital efficiently? How will these factors impact the credit profile?
To answer these questions, CRISIL is hosting a webinar titled 'Catalysed for growth', where its experts will share their views on:
Structural growth drivers and revenue outlook over the medium term
Cost-competitiveness of Indian players vis-à-vis global peers
Profitability expectations and its drivers
Capacity expansions and its funding mix
Credit outlook
This will be followed by a panel discussion with industry experts and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
