make in India and boycott china

Import substitution “Make in India”

For some of the sectors, the impending supply risk and the policy shift towards self-reliance is likely to translate into what is commonly referred to as “make in India” or import substitution. current crises, various companies have been working towards import substitution as a key business case to succeed. In Chemicals, Amine players (Balaji Amines & Alkyl Amines), rubber chemicals (NOCIL), Carbon black (Himadri Speciality & Phillips Carbon), Engineering plastics (Bhansali Engineering) are the areas to look at as they remain beneficiary of government’s steps to curtail import dependence.

Basic chemicals can gain traction because of the imperative to minimize supply chain risk. Companies to look at are Deepak Nitrite and GNFC as China factor has brought focus on key raw materials such as Acetone, Phenol, Aniline, Acetic Acid and Nitric Acid which are heavily imported.

In case of Pharma import dependency for key starting materials/APIs means companies such as Aarti Drugs, Granules India, JB Chemicals, IOL Chemicals would also be worth tracking. Some of them are key manufactures for drugs/APIs such as Paracetamol, Metronidazole and Ibuprofen and are increasingly attempting backward integration.

In the consumer durable space, the trend of in-house manufacturing is as well been evident for domestic players such as Havells and Voltas which have recently set-up in-house manufacturing facilities to reduce import dependencies.

In the Auto equipment segment, Lumax Industries is setting up of an electronics facility for localising component manufacturing. Further, Maruti is focused towards manufacturing various imported electronics parts, locally after witnessing recent supply disruptions.