24 November 2008 17:01 [Source: ICIS news]
By Nigel Davis
The chemical specialties market may be concentrated in the
The rate of growth of the business in
Sector companies can serve a growing domestic downstream market and are likely to grab a larger share of foreign business.
The push into
Much foreign direct investment has, until now, been targeted at
“The erstwhile cost advantage of
Not only has
After signing up to the TRIPS global patent agreement back in 1995, several legal cases have and are testing the system but a great many companies are patenting products in
It is the rapid development of downstream customer markets, alongside the national economy, and the developed legal framework that is helping lift growth in specialities.
But the sector itself is maturing fast with foreign players developing sophisticated market approaches and pursuing innovation hard.
More specialty chemical feedstocks are being produced domestically and some astute financing is helping to generate important future sector players.
TSM calls the growth of Indian agrochemicals major, United Phosphorus, for example, “spectacular”.
It has used clever cashflow management and financing to make funds available in the right place and at the right time to push growth through acquisition.
Yet, the consultants quite rightly say that
As anywhere else, there are demanding customers that require distinct performance requirements in end-user industries. But producers in
The emergence of alternative ‘green’ feedstock and changing supplier profits will necessitate a rethink of sourcing strategies, TSM adds.
Specialty chemicals producers in
The growth potential is significant and there are numerous opportunities but the market needs to be fleshed out.
Specialty producers will need to address the changing feedstock position, more demanding customers, the need for a wider product range and the development of technical and service support, the consultants believe.
The specialty chemicals market in
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