At first glance chemical manufacturing looks complicated and capital intensive. This perception is partly true. Large refineries and bulk chemical plants do require heavy investment, but downstream and specialty chemical units are on a completely different scale.<\/p>\n
India produces huge volumes of base chemicals, but is a major importer of finished and semi-finished products. This gap enables the new players to enter the market without having to compete directly with large corporations.<\/p>\n
Important factors as to why this sector is good for first-generation entrepreneurs include:<\/p>\n
\n- Moderate capital requirements of downstream processing units<\/li>\n
- Stable industrial demand as opposed to seasonal consumption<\/li>\n
- Better margins than for commodity chemicals<\/li>\n<\/ul>\n
These factors make chemical manufacturing a practical and scalable option for startups willing to make careful plans.<\/p>\n