Dun & Bradstreet India (D&B India) has reinforced its commitment towards servicing small and medium enterprises through the launch of its publication series, Emerging SMEs of India, brought to you in a strategic association with SME Rating Agency of India Ltd (SMERA). We are pleased to launch the fifth publication in this series, Emerging Chemical SMEs of India. The other four releases in this sector-based series, pertaining to Auto Components, Textiles, Food Processing and Pharmaceutical SMEs of India, were released earlier in 2006-07, and were very well received.

The SME segment is the subject of intense focus from several government institutions, corporate bodies and banks, and is rightly viewed as an agent of economic growth. However, there is a lack of structured information on India’s SME sector. A sincere attempt to fulfil this lacuna was the principal rationale in undertaking this exercise. This one-point reference document will provide a platform to enhance the visibility of these important constituents of the Indian growth story.

The chemical industry is among the most diversified industrial sectors, covering over 70,000 commercial products, and provides the building block for many downstream industries. The Department of Chemicals and Petrochemicals, GoI, estimates that in FY06, the domestic chemical industry contributed about 17.6% to the total output in the manufacturing sector, 13-14% to total exports and 8-9% of total imports into the country. The sector had a share of 3% in the country’s total GDP and its contribution to the revenue kitty of the Government was around 18-20%. Truly, the importance, breadth and coverage of this sector cannot be overstated.

The domestic industry’s turnover is estimated at over US$ 30 bn (Rs 1,300 bn) in FY06, which is slightly over 1% of the global production, thus placing India at the 12th position in terms of world production. The current growth prospects of the country, driven by industry and services, with focus on agriculture as well, ensures a sustained demand for chemicals. Being a knowledge-intensive sector, SMEs in the chemical sector will need to focus on improving production methods, marketing strategies and modern scientific management capabilities to sustain and strengthen operations in order to leverage these opportunities.

Emerging Chemical SMEs of India preserves the D&B commitment to providing information and knowledge that facilitate informed business decisions. D&B India has drawn on its time-tested expertise in the information business to the benefit of the small and medium companies, as this publication amply reflects.

Finally, I would like to thank the SME Rating Agency of India Ltd (SMERA) for their consistent support in this exercise. I am sure you will find this issue of Emerging Chemical SMEs of India useful and I look forward to your suggestions.

Dr Manoj Vaish
President & CEO - India
Dun & Bradstreet