Top Chemical Companies in India

India’s chemical industry is highly diverse, encompassing over 80,000 commercial products utilized across various industries. The top chemical companies in India cover a broad range of products, including bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilizers. As of 2019, the industry was valued at USD 178 billion, and it is anticipated to grow at a healthy rate of 9.3%, reaching USD 304 billion by 2025, highlighting its substantial and expanding contribution to the country’s economy.

Agrochemicals take the forefront among various chemical productions in India, where the country holds the fourth position globally in terms of production, boasting a market size of nearly USD 4.5 billion. India is also a significant contributor to the world’s dyestuffs and dye intermediates, producing a substantial 16%. With a noteworthy global market share of 15%, the nation’s colorant industry has established itself as a pivotal player. India’s chemical industry stands out on the international stage, ranking 14th in exports and 8th in imports, solidifying its position as a global leader in both outbound and inbound chemical trade.

The outlook for top chemical companies in India has improved lately as a result of the China+1 strategy, global companies de-risking their supply chains, strong demand from end-use industries, and high prices.

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Top 10 Chemical Companies in India

Having understood the quantum of the chemical industry, it is time to take a look at the top chemical companies in India. It is interesting to note that most of the big and fastest-growing players are listed chemical companies in India. The list is prepared based on sales growth over the last 5 years.

#1 United Phosphorus (UPL): Biggest Among Top Chemical Companies in India

Based in Mumbai, UPL is a prominent Indian chemical company specializing in agricultural and industrial chemicals, chemical intermediates, and specialized chemicals. Recognized for its role in crop protection solutions, UPL stands among the top chemical companies in India, with its products reaching markets in over 138 countries globally.

Financial Report of UPL as of March 2023

5-Year CAGR (%) – 25.2
Market Cap – INR 42,199 crore
Revenue – INR 53,576 crore
Net Income – INR 4,414 crore
P/E Ratio – 24.8
ROCE (%) – 14.3
Debt/equity – 1.21

#2 BASF India

Established in 1989 and based in Mumbai, BASF India, a subsidiary of the German company BASF, is a key player in the Indian chemical market. The company’s extensive portfolio encompasses six segments, including Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition and Care, and Agricultural Solutions, with active involvement in the marketing and sale of these products.

Financial Report of BASF India as of March 2023

5-Year CAGR (%) – 19.6
Market Cap – INR 13,212 crore
Revenue – INR 13,645 crore
Net Income – INR 403 crore
P/E Ratio – 38.5
ROCE (%) – 20.1
Debt/equity – 0.04

BASF‘s low P/E ratio suggests a stock price advantageous for investors. With promising 5-year returns and a debt-free status, the company demonstrates efficient capital use, reflected in its notable 20.1% ROCE ratio. This financial strength positions BASF as an appealing investment with growth potential and sound financial management.

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#3 Pidilite Industries

Founded in 1969, Pidilite Industries is a major player in the consumer and specialty chemical sector. In India, it commands a leading position in markets such as adhesives, sealants, construction chemicals, hobby colors, and polymer emulsions. The company operates through three distinct divisions: consumer products (contributing 84% to total sales), industrial adhesives (10%), and organic pigment and preparation (6%). This strategic diversification solidifies Pidilite’s stature in the chemical industry, showcasing its influence across diverse segments.

Pidilite has an established & extensive pan-India network, comprising over 4,800 distributors, servicing 200,000 dealers, retailers, and contractors across India.

Financial Report of Pidilite Industries as of March 2023

5-Year CAGR (%) – 14.2
Market Cap – INR 1,39,408 crore
Revenue – INR 11,799 crore
Net Income – INR 1,289 crore
P/E Ratio – 92.6
ROCE (%) – 23.8
Debt/equity – 0.06

#4 BAYER CropScience

Based in Thane, Mumbai, BAYER CropScience is a leading manufacturer of pesticide and fertilizer chemicals in India. As Bayer’s largest division in the country, it operates in seeds & traits, crop protection, digital farming, and environmental science. With a strong portfolio, BAYER CropScience specializes in managing insects, pests, weeds, and diseases, positioning itself as a major player in the agricultural chemical sector.

BAYER CropScience, with 13,000 employees, benefits from its German parent’s technological support. Operating three manufacturing sites in India, the company derives about 95% of its revenues domestically, with 2% from Germany and 3% from other regions. This highlights the company’s strong focus on the Indian market.

Financial Report of BAYER CropScience as of March 2023

5-Year CAGR (%) – 13.7
Market Cap – INR 26,291 crore
Revenue – INR 5,140 crore
Net Income – INR 758 crore
P/E Ratio – 34.2
ROCE (%) – 33.7
Debt/equity – 0.02

Bayer CropScience’s high ROCE shows that the company is efficient in capital employment. The Debt/Equity ratio of 0.02 enables the company to maintain a high ROCE.

#5 Gujarat Alkalies & Chemicals (GACL)

Established in 1973 by Gujarat Industrial Investment Corporation (GIIC), Gujarat Alkalies and Chemicals (GACL) operates in Gujarat. The company has integrated manufacturing facilities for various chemicals, including Caustic Soda, Chlorine, Hydrochloric Acid, Chloromethanes, Hydrogen Peroxide, Phosphoric Acid, Potassium Hydroxide, Potassium Carbonate, Sodium Cyanide, and Sodium Ferrocyanide.

GACL has emerged as a major player in India’s Caustic Soda production, boasting an installed capacity of 5,85,750 MTPA as of 31 March 2022. With a 13% share in the domestic market, GACL benefits from economies of scale. The company operates two units situated in Vadodara and Dahej, both located in Gujarat.

Financial Report of GACL as of March 2023

5-Year CAGR (%) – 13.0
Market Cap – INR 5,782 crore
Revenue – INR 4,516 crore
Net Income – INR 410 crore
P/E Ratio – 69.9
ROCE (%) – 10.8
Debt/equity – 0.09

#6 Aarti Industries

Incorporated in 1984, Aarti Industries (AIL) is one of the top 10 chemical companies in India and makes specialty chemicals and pharmaceuticals with a global footprint. It combines process chemistry competence with a scale-up engineering competence (asset utilization).

Aarti Industries is a leading manufacturer of chemicals essential for pharmaceuticals, agrochemicals, polymers, and more. Over 30 years, the company has become a preferred partner for 400+ global and 700+ domestic clients in the chemical industry, with four research and development centers in Maharashtra and Gujarat.

Financial Report of Aarti Industries as of March 2023

5-Year CAGR (%) – 11.7
Market Cap – INR 22,408 crore
Revenue – INR 6,619 crore
Net Income – INR 545 crore
P/E Ratio – 50.2
ROCE (%) – 10.4
Debt/equity – 0.64

#7 TATA Chemicals

Founded in 1939 and headquartered in Mumbai, Tata Chemicals (TCL) is a key player in the Tata Group, focusing on two main sectors: Fertilizers and Inorganic chemicals, including soda ash and sodium bicarbonate. Operating India’s largest inorganic chemical plant in Mithapur, TCL produces a diverse range of products, from salt licks for cattle and fertilizers to cement, glass, processed steel, and detergents. TCL holds a significant market share in the country’s soda ash industry, contributing about one-third of the total market.

It is among the largest manufacturers of chemical products in India and many other European countries, North America, and Africa.

Financial Report of TATA Chemicals as of March 2023

5-Year CAGR (%) – 10.3
Market Cap – INR 28,154 crore
Revenue – INR 16,789 crore
Net Income – INR 2,434 crore
P/E Ratio – 14.2
ROCE (%) – 11.6
Debt/equity – 0.28

Its CMP/Sales ratio is healthy and the 0.28 Debt/Equity ratio shows that the company is not dependent on other sources of investment which shows that the company is independent and in a stable financial condition.

#8 Gujarat Heavy Chemicals (GHCL)

Established in October 1983, GHCL has become a well-diversified group with a significant presence in the Chemicals, Yarn, and Consumer Products sectors. The company, particularly active in the Chemicals sector, specializes in manufacturing Soda Ash and Sodium Bicarbonate. Operating a Soda Ash plant in Sutrapada, Gujarat, GHCL has an impressive installed production capacity of 11 Lakh MTPA.

Its Yarn division produces 100% cotton and synthetic yarns with an annual capacity of 30,000 metric tonnes. Consumer Products operation is another business for GHCL where it is a leader in manufacturing and selling Edible salt, Industrial grade salt, and Honey in the country.

Financial Report of GHCL as of March 2023

5-Year CAGR (%) – 9.26
Market Cap – INR 5,689 crore
Revenue – INR 4,545 crore
Net Income – INR 1,142 crore
P/E Ratio – 6.42
ROCE (%) – 35.5
Debt/equity – 0.10

#9 Atul

Incorporated in 1947, Atul is a diversified and integrated Indian chemical company. The company’s products are used in various industries and come mainly under two segments, Life Science Chemicals, and Performance and Other Chemicals. The company has manufactured many products for the first time in India Dyes including Vat Dyes, crop care chemicals, Phosgene, Carbamite, 2,4-D Acid, para Cresol, and tissue culture-raised date palms.

The company has also expanded its business in the international market by starting its subsidiary companies in various countries like the United States, United Kingdom, China, Brazil, and UAE.

At present, the company has one of the biggest integrated chemical complexes in India with a well-diversified product portfolio of around 900 products and 400 formulations. It has manufacturing facilities located at Ankleshwar and Valsad in Gujarat & Tarapur in Maharashtra.

Financial Report of Atul as of March 2023

5-Year CAGR (%) – 9.09
Market Cap – INR 20,256 crore
Revenue – INR 5,428 crore
Net Income – INR 507 crore
P/E Ratio – 52.3
ROCE (%) – 15.3
Debt/equity – 0.03

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#10 India Glycols

Ghaziabad-based India Glycols is one of the leading manufacturers of glycols, ethoxylates and PEGs, performance chemicals, glycol ethers and acetates, natural gums, and potable alcohol. India Glycols has operations in India, Europe, and the United States and is one of the largest manufacturers of industrial alcohol in India.

The company’s product portfolio includes a wide range of industrial alcohols, including ethyl alcohol, denatured alcohol, and industrial methylated spirits, as well as various industrial chemicals, such as ethylene glycols, diethylene glycols, and triethylene glycols.

Financial Report of India Glycols as of March 2023

5-Year CAGR (%) – (2.67)
Market Cap – INR 2,792 crore
Revenue – INR 2,651 crore
Net Income – INR 141 crore
P/E Ratio – 19.4
ROCE (%) – 8.39
Debt/equity – 0.56

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