SRL is planning to foray into high growth area of Speciality Chemicals.
Speciality chemicals are those that have been developed in recent times and are regarded as an emerging sector in the global chemical industry.
Recent market research statistics suggest that the speciality chemicals market is growing further with major shift of growth towards China, India and Japan.
They include high performance anti-corrosion coatings, speciality films, cosmetic chemicals, petrochemical process catalysts, water management chemicals, adhesives and sealants, packaging chemicals, speciality paper chemicals, plastic adhesives, oil field chemicals, process chemicals, printing inks, textile chemicals, industrial or institutional chemicals, surfactants, flavours and fragrances, food additives and water-soluble polymers.
Japan holds 30% market share of speciality chemicals with growth rate of 2% and is expected to be of value $100 billion. China accounts for 25% of market share in the Asia-Pacific region. The market is growing at the rate of 11 % every year.
The Indian market share in speciality chemicals is around 10%. The growth rate is around 10% and market is expected to grow to $200 billion by 2020. Among the sub-segments of speciality chemicals, commodity chemicals dominates the Indian market. Major players in the India market include BASF, Dow Chemical Company, Tata Speciality Chemicals, and Rashtriya Chemicals and Fertilizers (RCF). Apart from this, many chemical companies have started their speciality chemicals division. For new companies willing to expand their operations in India, barriers include high start-up costs and governmental regulations.