Budget 2024: Chemical industry expects faster approval for product facilities, Gopal Agrawal, CEO, Anupam Rasayan.

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Also read- HUL share price underperform Nifty Sensex in 1year . Should you Buy Sell or Hold More than 70% of the company’s revenues (73%) are from contracted customers while less than 3% is on order-to-order basis. Agrawal does not expect any impact on margins and says the margins have stayed in 26-28% range and will continue to remain so.

Anupam Rasayan has long standing relationship with customers. There is transparency which is maintained with the customers on raw material costs and end product prices. Hence the margins can be maintained as higher cost get passed through while benefits of lower raw material prices are also reaped by customers.

The Indian manufacturers that have expanded capacities also benefit from backward integrations and quality of produce. They are also likely beneficiaries of China+1 and Europe +1 (cost of production is also rising for European producers). Agrawal however points that growth in the market itself is so strong that Indian producers can easily deliver a 10% CAGR (compound annual growth) even if China+1 or other opportunities are not considered.

Also Read- Q2 result: Galaxy, Vinati Organics, other Specialty chemicals may have better H2 Anupam Rasayan has added orders worth ₹4000 crore in FY24 while also has interest shown by customers for orders worth ₹8000 Crore. The orders that it has garnered will ramp up gradually and steadily and contributions to revenues will rise steadily. Agrawal says that while the government has provided significant support to the industry, fastening the pace of product facility approvals will improve ease of doing business.