STATUTORY REPORTS
MANAGEMENT DISCUSSION AND ANALYSIS
Over the past decade, India’s chemical industry structurally outperformed both global rivals and regional peers. While it navigates a shifting world order that complicates value creation and capital expenditure, its fundamental advantages and growth potential remain compelling. Performance is diverging across industry segments, with specialty and niche chemicals showing greater resilience than commoditized products. This inflection point presents an opportunity for companies to decisively reassess capital allocation and long-term positioning.
The Indian chemical market, currently estimated at approximately $ 155-165 billion, is expected to grow at a steady pace and reach $ 230-255 billion by 2030, implying a CAGR of 8-9%. This trajectory is likely to outpace overall GDP growth, reflecting both increase in domestic consumption and India’s share in global chemical production.
Despite current challenges, the Indian chemical industry is positioned to sustain growth momentum over the next five years.
This robust growth in the Indian chemical industry is expected to be supported by a combination of stable demand from traditional GDP-linked sectors such as consumer goods, packaging, textiles, automotive, and construction, alongside emerging opportunities in high-growth areas like electric vehicles, renewable energy, and semiconductors. In addition, India-based chemical companies could further accelerate growth by addressing India’s $20 billion to $30 billion supply-demand gap and by increasing exports. This could require them to align their capital and resources with the drivers of demand.
Overview of Company:
Gujarat Narmada Valley Fertilizers and Chemicals Limited (‘the Company’ or ‘GNFC’) operates businesses mainly in the Industrial Chemicals, Fertilizers apart from small presence of IT services.
In the chemical segment, it has a product portfolio of various bulk chemicals which are used in industries for manufacturing various specialty chemicals as well as end products.
008 | 50 Annual Report 2025-2026