Himadri Speciality To Benefit From Anti-Dumping Duty On Chinese Chemical Imports
The CBEC has imposed an anti-dumping duty of $217.40 per tonne on SNF import from China.
Himadri Speciality Chemical Ltd. is likely to benefit from the government’s anti-dumping duty on Chinese imports of a chemical used in the construction and dyes industry.
The Central Board of Excise and Customs imposed an anti-dumping duty of $217.40 per tonne on the import of sulphonated naphthalene formaldehyde from China for a period of five years, it said in a notification on its website yesterday. China has been exporting the chemical below its normal value, resulting in “material injury” to domestic industry, CBEC explained.
An anti-dumping duty will benefit Himadri Speciality, the largest manufacturer of of SNF in India with a market share of close to 50 percent, brokerage IIFL had said in a report when the duty was proposed by the industry. The brokerage had also initiated coverage on the company with a ‘buy’ rating.
The imposition of anti-dumping duty on the chemical, which contributes roughly 13 percent to its overall revenue, would not only improve profitability but also drive volumes for the market leader, IIFL had said.
The construction chemical market in India is still largely untapped with penetration of admixtures – chemical products that when added to concrete can create a desired slump at a lower water-cement ratio than what it is normally designed – at nearly 10 percent. This is much lower than the global average of 40-50 percent, mainly due to low awareness and cost conscious consumers in India, according to a report by ICICI Securities.
However, government regulations firming up in line with international best practices, increased construction and infrastructure activity creates a huge opportunity for companies such as Himadri Speciality, it said.
Construction chemicals is expected to result in a robust 15 percent compounded annual growth report in FY14-19e.ICICI Securities