The chemicals market picked up pace in 2010, according to a majority of SMEs (58.3 per cent) taking part in a survey of the chemicals sector conducted by IndiaMART Knowledge Services. About 30 per cent of survey respondents, however, did not find any change in 2010 over 2009.
The majority of participants (51.7 per cent) foresee a growth in sales of over 20 per cent in 2011 and 45 per cent expect growth of up to 20 per cent.
Many chemical units reported improved consumer sentiment in 2010. The improvement was ‘average’ for 65 per cent, ‘beyond expectations’ for 15 per cent and negative for 20 per cent of respondents.
The majority (53.3 per cent) reported a rise of up to 20 per cent in sales in 2010, while 26.7 per cent found an increase of more than 20 per cent. Only 20 per cent of respondents reported a decline in sales.
More than half the respondents (51.6 per cent) experienced a rise of up to 20 per cent in export demand in 2010, compared to 2009. Around 11.7 per cent reported an increase in export demand of more than 20 per cent.
Fifty per cent of the respondents found that input prices increased significantly in 2010. While 38.3 per cent said the increase was marginal, around 11.8 per cent found input prices to be stable. Product prices in 2010 also improved marginally for about 33.3 per cent of survey participants and significantly for 20 per cent of them. Around 31.7 per cent reported stable product prices.