Specialty chemicals may weather US tariff impact better than commodity players: HDFC Securities

Indian chemical companies are facing a mixed impact from the recent US tariff hikes, said Nilesh Ghuge, Institutional Analyst at HDFC Securities. While commodity manufacturers are likely to take a hit, speciality players could still hold their ground.“Commodity manufacturer will suffer a lot,” Ghuge said, stating that the 50% duty, even if reduced to 25%, would weigh heavily on bulk chemical producers.

Speciality chemical makers, however, are in a stronger position. “There is a clear-cut advantage that Indian manufacturers will enjoy because of the process innovation,” Ghuge stated. Customers are often ready to absorb higher costs, which protects demand for these products.

At the same time, the policy backdrop is fluid. “Things are evolving… there is a bilateral discussion going on between the US and Indian government,” he added, raising hopes that tariffs could be scaled back.Also Read: Neogen Chemicals eyes four-digit battery revenues by FY28

Competition with China also remains a key factor. With tariffs on Chinese chemicals at 27–30%, Indian firms could gain an edge in the US market. But Ghuge cautioned, “There could be chances that the Chinese manufacturer will dump those products in the other markets.”

For the entire interview, watch the accompanying video

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