The Indian market for specialty chemicals has been growing robustly, especially with the China+1 strategy adopted by global players. While China has been the largest market for specialty chemicals for a long time now, there has now been a strategic shift that has positioned India as one of the leading suppliers of specialty chemicals.
As per surveys and reports, the specialty chemical industry already accounts for 47% of the country’s domestic chemical market, and it is expected to grow at a CAGR of 11% in the next five years, which can further make India one of the top destinations for specialty chemicals globally. (Source: Invest India)
In the past decade, many chemical manufacturing companies have also shifted more towards specialty chemicals, as the market holds greater opportunities. Three such companies, which are mostly engaged in manufacturing these rare chemicals, have been delivering market-beating returns, that too with zero debt.
Let’s try to figure out how they are delivering so efficiently.
#1 Platinum Industries: The Innovation-Led Exporter
Platinum Industries Ltd. is the third-largest company in the PVC additives market in India. It has a 13% market share as of August 2025, and its core product range includes PVC and CPVC additives, metal soaps, and lubricants, apart from other products which it offers, such as Lead additives, Hybrid low lead additives, and others. The products of the company are used across PVC fittings, pipes, even in the electrical wiring, SPC floor tiles, packaging, and roofing solutions as well.
In the last 10 years, the company offered an average Return on Capital Employed (ROCE) of 52%, which is massive. On the contrary, the industry median is just 17.9%. Let’s try to understand the underlying reasons pushing the company forward.
Innovation at its Core
One of the primary reasons for the exceptional growth of Platinum Industries might be its constant innovation. The company has been coming up with new products every year; moreover, they are now trying to develop stabilizers that are lead-free, keeping in mind the push towards sustainable development. The company has been continuously investing 3.5% of its revenue in its research and development segment (R&D). This has helped the company develop a strong portfolio of specialty chemical products.
Strategic Expansion Plans
Another reason behind the continuous growth of the company is its strategic expansion plans. They have always selected locations for their facilities near ports, with easy access to shipping routes. They have proximity to the JNPT port, which reduces their freight cost as well.
The production capacity of the company is set to reach 120,000 Metric tons (MT) in India’s Palghar facility by the end of FY26. Apart from this domestic facility, which is the main source of production, Platinum Industries has another facility in Egypt, which contributes to an additional 60,000 MT of annual production.
This specialty chemical manufacturer has been building a global network silently but steadily. It has already expanded its reach to Russia, the Eastern part of Europe, and Southeast Asia from its production in India, while from the Egypt facility, exports to Middle East countries, northern Africa, Southern America, and even to China are carried out.
Financials
Although the company was incorporated in 2016, it was listed last year, the financials are available since FY21 only. The sales in these four years have gone up from ₹89 crore to ₹392 crore. The net profit jumped from ₹5 crore to ₹50 crore during the period. These are very strong growth numbers.
Valuation
The stock is currently trading at a price-earnings (PE) ratio of 34.1x, slightly higher than the industry median of 33.8x.
1-year Share Price Chart of Platinum Industries Ltd.
#2 Clean Science: The Diversified Global Leader
Clean Science & Technology Ltd. is a leading specialty chemical manufacturer globally. The company manufactures some of the rare but critical chemicals, which include Performance Chemicals (MEHQ, AP, and BHA), FMCG Chemicals, like 4-MAP, Anisole, and then Pharmaceutical Intermediaries like Guaiacol and DCC.
It has delivered an average ROCE of 46.8% over the last 10 years, compared to a 17.9% industry median. Moreover, this massive growth has come without any debt in the books of the company.
Diversified Products
One of the prime reasons for this chemical manufacturer growing at a fast clip is due to its portfolio of diversified products. Apart from the range of products, the massive production capabilities for most of the flagship products of Clean Science are another probable reason behind the significant growth.
In the past 10 years, the company has increased its capacity to produce MEHQ, BHA, and Guaiacol by 50%, while commercializing HALS 770 and HALS 701 and building the largest plant for producing HALS in India.
It has 4 manufacturing units across the country with a state-of-the-art pilot facility and equally with fully functioning application labs.
63% of the company’s revenue as of July 2025 came from exports to over 500 global as well as domestic clients from across 35 countries.
The innovation and development of new products have always added value to the business, placing the company as one of the global players in the field of specialty chemicals.
Consistent Growth in the Financials
In the last ten years, the sales of the company have increased from ₹164 crore in FY15 to ₹922 crore in FY25, registering a 19% compound annual growth rate (CAGR). Similarly, the profit for the period surged at 24% CAGR from ₹35 crore in FY15 to ₹292 crore in FY25. The average Return on equity (ROE) for the period stood at 30%.
Way Ahead
While the Management of the company is a bit worried about the global trade uncertainties currently, however, they believe the business to be resilient and expect it to perform well even in a volatile market. This is based on the view that the market for specialty chemicals is growing globally.
Management expects the Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) to grow between15% to 18% for the whole of FY26, downgrading their own estimates of 18% to 20% previously. They expect Q2 FY26 to be slow, but anticipated Q3 and Q4 to see significant growth.
Valuation
The company is trading at a PE of 37.8x, which is a bit higher than the industry median of 33.9x, indicating a premium valuation, though solely based on PE.
1-Year Share Price Chart of Clean Science & Tech Ltd.
#3 Jyoti Resins: The Domestic Dominator
Jyoti Resins and Adhesives Ltd. is a leading synthetic resin and adhesive manufacturer in India, which is mainly known for its white glue products under the brand name of EURO 7000. This is the second-highest-selling wood adhesive in the country across the retail segment.
In the past ten years, the average ROCE of the firm stood at 41.3%, while the industry median is just 17.9%. This specialty chemical manufacturer is also delivering such astounding returns without any debt in its books, that too since 2018.
Sharp Increase in Production
Jyoti Resins has increased its production sharply over the last ten years. While during FY16-17 the company had a production capacity of only 500 Tons per month (TPM), it has increased the same to a massive 2000 TPM in FY22, which is also the current capacity.
Apart from an increase in production, the firm has been really making efforts in reaching the corners of the country. It has presence in over 14 states across India, and added Delhi and UP in Q1FY26 to the list. The majority of sales, around 75% to 80% come from the top five states, which are Gujarat, Rajasthan, MP, Maharashtra, and Karnataka.
Expansion Plans Going Forward
The resin manufacturer is planning a brownfield expansion of 1,500 TPM, which is expected to take place in the next 12 months, and will increase the total monthly capacity to 3,500 TPM.
The capital expenditure for this expansion as of August 2025 has been ₹10 crores, and further ₹45 crores has been estimated for a greenfield expansion, which is also being considered on the outskirts of Ahmedabad. This will be taking place in the coming 2-3 years, not immediately.
The management anticipates the revenue to go up to ₹650 crore after the expansion takes place and the full capacity is operational. They also expect the EBITDA margin to remain between 22% to 25% through the remainder of FY26.
Sharp Increase in Financials
Sales grew from ₹26 crore in FY15 to a whopping ₹284 crore in FY25, at 27% CAGR. While the net profit in FY15 was not even in crores, now, in FY25, it stood at ₹74 crore, growing at an astounding 80% CAGR. The average ROE for these 10 years has been 42%, which is also the highest amongst its peers, and way higher than the industry median of 13.9%.
Valuation
The stock is trading at 20.3x, which is significantly lower than the industry median of 33.7x. This is quite interesting as the company has been growing at such a pace, but the valuation still looks cheaper.
1-Year Share Price Chart of Jyoti Resins
Wrapping Up
The specialty chemicals sector in India has been transforming rapidly, and India is becoming one of the leading global suppliers of these chemicals. The chemical manufacturers in India are gradually shifting more towards specialty chemicals as the demand is rising, and these three companies have been doing the same for the last ten or more years. However, what sets them apart is their consistent efficiency, which not only helps them create value for the customers but also for investors alike.
We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
Disclaimer:
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
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