Top Chemical Companies In India

India’s chemical industry is extraordinarily diverse with over 80,000 commercial products finding their way in a variety of end-use applications across industries. The top chemical companies in India straddle a full range of products including bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilizers. According to industry estimates, the country’s chemical industry was worth USD 178 billion in 2019 and it is likely to expand at a healthy rate of 9.3% to USD 304 billion by 2025.

Prominent of all types of chemicals produced in India is agrochemicals where the country stands at fourth position globally in terms of production with a market size of almost USD 4.5 billion. India also produces a whopping 16% of the world’s dyestuffs and dye intermediates. With a global market share of 15%, the nation’s colorants industry has emerged as a key player. The chemical industry of India is a global leader in exports and imports, ranking 14th in exports and 8th in imports.

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

Top 10 Chemical Companies in India

Having understood the quantum of 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 on the basis of sales growth over the last 5 years.

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

Mumbai-based UPL manufactures and markets agricultural chemicals, industrial chemicals, chemical intermediates, and specialized chemicals. The company also offers crop protection solutions. It is one of the top chemical companies in India. The company’s products are sold in about 138+ countries.

Financial Report of UPL as on March 2023

5-Year CAGR (%) – 23.2
Market Cap – INR 55,545 crore
Revenue – INR 46,240 crore
P/E Ratio – 12.8
ROCE (%) – 15.6
Debt/equity – 1.34

#2 BASF India Ltd

BASF India was established in 1989 and is headquartered in Mumbai, India. BASF is among the leading companies in the Indian chemical market. It is a subsidiary of the German-based company BASF. BASF’s portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. The company is also involved in the marketing and selling of these products.

BASF India - Top 10 chemical companies in India

Financial Report of BASF India as on March 2023

5-Year CAGR (%) – 20.9
Market Cap – INR 10,411 crore
Revenue – INR 13,100 crore
P/E Ratio – 22.2
ROCE (%) – 33.5
Debt/equity – 0.04

BASF has an excellent P/E ratio which shows that the company stock price is low relative to earnings which is a bargain for investors. The 5 Years Returns indicate that the company is expected to scale up. Also, the company is debt free with a ROCE ratio of 33.5% which shows that the company is very efficient in utilizing capital.

#3 Aarti Industries Ltd

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).

The company makes chemicals used in the downstream manufacturing of pharmaceuticals, agrochemicals, polymers, additives, surfactants, pigments, and dyes. Over the past 3 decades, Aarti Industries has emerged as a global partner of choice for over 400+ global and 700+ domestic customers across the chemical industry. The company has four R&D centers located at Dombivali and Navi Mumbai in Maharashtra, and Vapi in Gujarat.

Financial Report of Aarti Industries as on March 2023

5-Year CAGR (%) – 17.5
Market Cap – INR 20,126 crore
Revenue – INR 7,919 crore
P/E Ratio – 34.1
ROCE (%) – 22.1
Debt/equity – 0.59

#4 Gujarat Alkalies & Chemicals Ltd (GACL)

Gujarat Alkalies and Chemicals Limited (GACL) was incorporated in 1973 in the state of Gujarat by Gujarat Industrial Investment Corporation Limited (GIIC). It has integrated manufacturing facilities for Caustic Soda, Chlorine, Hydrochloric Acid, Chloromethanes, Hydrogen Peroxide, Phosphoric Acid, Potassium Hydroxide, Potassium Carbonate, Sodium Cyanide, Sodium Ferrocyanide.

GACL has emerged as one of the largest producers of Caustic Soda in India with a present installed production capacity of 5,85,750 MTPA (Million Tonnes Per Annum) as on 31 March 2022 and enjoys economies of scale. The company has about 13% share in the domestic Caustic Soda market. GACL has two units located at Vadodara and Dahej, in Gujarat.

Financial Report of GACL as on March 2023

5-Year CAGR (%) – 12.7
Market Cap – INR 5,064 crore
Revenue – INR 3,759 crore
P/E Ratio – 7.39
ROCE (%) – 13.5
Debt/equity – 0.10

#5 Pidilite Industries

Pidilite Industries is a consumer and specialty chemical company founded in 1969. In India, Pidilite dominates the adhesives and sealants, construction chemicals, hobby colors, and polymer emulsions markets. The company’s business operations are organized into three divisions – consumer products (contributing 84% to total sales), industrial adhesives (10%), and organic pigment and preparation (6%).

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 on March 2023

5-Year CAGR (%) – 12.0
Market Cap – INR 1,24,890 crore
Revenue – INR 9,921 crore
P/E Ratio – 100
ROCE (%) – 26.1
Debt/equity – 0.10

#6 BAYER CropScience Ltd

BAYER CropScience is a pesticide and fertilizer chemical manufacturer based in Thane, Mumbai. BAYER CropScience division is the largest for Bayer in India with businesses in seeds & traits, crop protection, digital farming, and environmental science (non-agricultural pest control). Its robust crop protection portfolio includes products to manage insects, pests, weeds, and diseases.

The company has 13,000 employees across all of its locations. BAYER CropScience benefits immensely in technology and R&D updates from its German parent whose corporate family consists of 87 firms. The company has 3 manufacturing locations in Gujarat, Dadra & Nagar Haveli, and Andhra Pradesh to fulfill demand. The company derives ~95% of its revenues from India, followed by Germany 2% and others 3%.

Financial Report of BAYER CropScience as on March 2023

5-Year CAGR (%) – 11.0
Market Cap – INR 18,573 crore
Revenue – INR 4,734 crore
P/E Ratio – 27.4
ROCE (%) – 30.9
Debt/equity – 0.03

Bayer CropScience’s high ROCE shows that the company is efficient in capital employment. The Debt/Equity ratio of 0.03 enables the company to maintain a high ROCE.

#7 TATA Chemicals Ltd

Incorporated in 1939, It is headquartered in Mumbai, Maharashtra. Tata Chemicals (TCL) is divided into two business segments: Fertilizers and Inorganic chemicals (soda ash, sodium bicarbonate etc). The company, which is part of the Tata Group, manages India’s largest inorganic chemical plant in Mithapur. TCL’s products include salt licks for cattle, fertilizers, cement, glass, processed steel, and detergents, among others. Its soda ash business is also the country’s largest, accounting for about a third of the market.

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

Financial Report of TATA Chemicals as on March 2023

5-Year CAGR (%) – 10.3
Market Cap – INR 25,048 crore
Revenue – INR 12,622 crore
P/E Ratio – 12.2
ROCE (%) – 8.40
Debt/equity – 0.33

Its CMP/Sales ratio is healthy and the 0.33 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)

GHCL Limited was incorporated in October 1983. The company has established itself as a well-diversified group with an ascertained footprint in the Chemicals, Yarn, and Consumer Products segment. In the Chemicals sector, the company manufactures Soda Ash (Anhydrous Sodium Carbonate), a major raw material for detergents, glass & ceramics industries, and Sodium Bicarbonate (baking soda). The company has a Soda Ash manufacturing plant at Sutrapada in Gujarat with an installed production capacity of 11 Lakh MTPA.

Its Yarn division produces 100% cotton and synthetic yarns with 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 on March 2023

5-Year CAGR (%) – 9.26
Market Cap – INR 4,670 crore
Revenue – INR 4,545 crore
P/E Ratio – 4.41
ROCE (%) – 34.8
Debt/equity – 0.09

#9 Atul Ltd

Incorporated in 1947, Atul Ltd. 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 Ltd as on March 2023

5-Year CAGR (%) – 9.09
Market Cap – INR 19,465 crore
Revenue – INR 5,428 crore
P/E Ratio – 38.4
ROCE (%) – 15
Debt/equity – 0.01

#10 India Glycols Ltd

Ghaziabad-based India Glycols Limited 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 on March 2023

5-Year CAGR (%) – 2.79
Market Cap – INR 1,753 crore
Revenue – INR 2,868 crore
P/E Ratio – 12.5
ROCE (%) – 8.98
Debt/equity – 0.62