India’s Chemical Value Migration from China: A Long-Term Growth Story
Ashi Anand of IME Capital believes India's specialty chemical sector is set for long-term growth, driven by global supply chain de-risking from China and India's cost competitiveness. Anand expresses caution on two-wheeler electric vehicles due to uncertain profitability, but is optimistic about passenger vehicles and auto ancillaries, highlighting a multi-year opportunity as companies shift supply chains away from China.
The article presents Ashi Anand’s perspective on India’s specialty chemical sector, emphasizing its potential for sustained expansion as global firms diversify supply chains away from China. Anand points to structural advantages, such as India’s cost competitive manufacturing and robust technical capabilities, which are attracting foreign investment and positioning the country as a key node in the global chemical value chain. While optimistic about the broader chemical industry, Anand notes a degree of caution regarding two-wheeler electric vehicles, citing uncertain profitability in that segment. Conversely, he sees significant upside for passenger vehicles and auto ancillaries, driven by both domestic demand and the relocation of global supply chains. The article frames these shifts as part of a broader, multi-year trend, reinforcing India’s emergence as a critical player in specialty chemicals and related manufacturing sectors.
