The chemical industry is a major contributor to the Indian economy and is expected to have a compounded annual growth rate (CAGR) of around 9.3% and have a size of USD 304 billion by 2025. The Indian chemical industry can be classified into speciality chemicals, bulk chemicals, agrochemicals, petrochemicals, polymers and fertilisers. Moreover, the growing disposable income and increasing urbanization are boosting the demand for construction, paints and adhesives which in turn gives rise to substantial opportunities for the chemical industry. The industry’s product offerings encompass a vast basket of more than 80,000 commercial products with dyes, pigments and agrochemicals accounting for nearly 50% of chemical exports from India. Looking at its growth potential, the chemical industry in India is expected to attract investments worth 8 lac crores by 2025.
Few of the corporates in the industry have exported as they have a significant international customer base, others have imports whereas few have both imports and Exports. The imports are mostly in imports, Organizations with exports have exposure to USD, and EURO mostly with some exposure in JPY too. The challenge is to align the exposures with business objectives and devise optimum hedge strategies. Risk management in a net or gross manner remains to be the deciding factor given the objectives of a specific company. The corporates may have term loans in foreign currency and some CAPEX in FC as well.
USD INR View Today and Factors Impacting USD INR
Daily Morning Update: Global Markets and USDINRDebt ceiling deal imminent. Dollar stable and INR...
Importer Option Strategies
Importer Option StrategiesWritten by QuantArt MarketForex Hedging | Updated on : 22nd October ...
How exporters can fix their Fx problem
How exporters can fix their Fx problemWritten by QuantArt MarketForex Hedging | Updated on 27th...
We are committed to helping your team reach the goals we set with you. We become an extension of your treasury. Our investment banking experiences and world-class treasury insights will add to your team’s competitiveness.
Our Events are spread across the year. Our focus is to have workshops and knowledge sessions that increase the effectiveness both of an individual and an organization. The sessions are structured on practical relevant operations aspects. We also have sessions on updated, current, relevant market movements and practices, regulations, knowledge, and technology. All training sessions are free for our advisory retainer clients. Clients can register by sending us an email to [email protected]. Few of our training sessions are complimentary for everyone. Explore what we have for you.
A large corporate with 15 to 20million imports every month was paying a huge hedge cost before they became our clients. We worked with them to devise their risk management policy, their hedge strategy and introduced a combination of instruments to be used depending on the market dynamics for hedging. We monitored their exposures closely, advised and worked with them on pricing, instruments, timings, and negotiations for hedging. In a single year, they have seen considerable savings.