Chemical sector all together and its variant branches
Till 2006, the European Union and the United States were the biggest players in global chemical sales (25% and 29% in 2006, 28% and 29% in 2000 respectively). At the turn of the millennium, China’s share in global chemical sales was just 6%, India’s share was an even-lesser 3.2%. By 2017, India maintained its share at 3.5% while China leads the industry with the sector-highest sales of 37%. The relative shares of US, EU and Japan have all been usurped by China. This is not a case of mere numbers. Chemical sales and industry have been a vital cog in the wheel in the China growth story until 2015-16.
As any careful observer of the global chemicals industry can testify, the chemical industry has outperformed global equity market in the last 15 years. In India’s case, the gulf is very wide. According to Datastream, Corporate Performance Analytics by McKinsey, between December 2006-19, Total Return to Shareholders (TRS) has grown at a CAGR of 15% while equity markets grew at 5%. If the time periods are pencilled down to December 2016-19, the corresponding numbers are 17% and 12% respectively. Indian Chemical Industry is also peerless (except for Consumer Products) as the TRS CAGR is significantly higher than related upstream/downstream sectors.
Here is the below chart done using excel - the data is from https://data.gov.in/search/site?query=chemicals (FREE)
The chart gives an idea about the production of chemicals in 2018-2019
The site also provides API for data…
Chemical sector will be the booming sector for the next era
Note : This is for study & academic purpose and not an stock recommendation or for commercial purpose. The idea behind this is to know the industry and gain more insights…