Specialty chemical companies line up highest ever capex in FY19

To capitalise on lower supply from China due to environmental concerns, plant closure

India’s specialty chemical companies are set to invest the highest ever on capacity expansions in the financial year 2019 and continue capital expenditure to cater to rising demand from domestic and overseas markets, following plant shutdowns in China, the world’s largest producer and exporter.

Data compiled by SBICAP Securities showed specialty companies such as Aarti Industries, Fine Organic Industries, Himandri Specialty Chemicals and Bodal Chemicals have lined up Rs 9,200 crore for FY20 compared to Rs 1,400 crore for the previous financial year. These companies have proposed capital expenditure of Rs 5,000 crore and Rs 6,500 crore for FY20 and