India’s chemical industry is poised for significant investment opportunities, with the potential to achieve import substitution worth $25–30 billion, according to Ashish Bharat Ram, Chairman and Managing Director of SRF. Ram emphasized that these chemicals do not include hydrocarbons, but focus on specialty and intermediate chemicals critical for multiple industries.
From $2 Trillion to $4 Trillion: Why Scale Matters
Ram said, “As a $2-trillion economy, it did not make sense to set up capacities for certain chemicals because we could consume only 20–30% of the output, making competition with China unviable. Today, as India has become a $4-trillion economy, we have developed the scale to consume a majority of this output. This creates a compelling case to invest in these plants as an import substitution opportunity.”
Currently, India imports a large volume of chemical intermediates from China, which are used in everyday products like shampoos and soaps. Building domestic capacity could drastically reduce dependency on imports and strengthen India’s chemical supply chain.
SRF’s Strategic Investments in Specialty Chemicals
Ram revealed that SRF is already active in this segment and plans substantial investments over the next 3–5 years. “Over the next three to five years, a lot of investments of ours will come in that arena,” he said, signaling aggressive expansion in specialty chemicals.
SRF’s Transformation
SRF has evolved from being a technical textile (tyre cord) manufacturer to a leading player in specialty chemicals. In 2005, 70% of SRF’s revenue came from technical textiles, but today that contribution has dropped to 15–18%, as the company shifts its focus to chemicals. SRF now supplies active ingredients and intermediates to global giants such as Syngenta, Bayer Crop Sciences, and BASF in the crop protection chemicals segment. Additionally, SRF is a major supplier of refrigerant gases to India’s air-conditioning industry. Further strengthening its position, SRF has announced a strategic tie-up with Chemours, a DuPont spinoff, signaling its intent to deepen capabilities in high-value chemical solutions.
