Stocks to Watch: Chemical Makers That May Benefit from New BHAVYA-Rasayan Parks Scheme

New Delhi/Mumbai, July 25: Union Cabinet approved a new scheme worth Rs 3,030 crore to set up three dedicated chemical parks in the country. Named the Bharat Audyogik Vikas Yojana Rasayan, or BHAVYA-Rasayan Scheme, the initiative was first flagged in the Union Budget for 2026-27 and will run for five years through 2030-31.

Of the total outlay, Rs 3,000 crore is earmarked for common infrastructure and basic utilities inside the parks, with the remaining Rs 30 crore set aside for administrative expenses, Information and Broadcasting Minister Ashwini Vaishnaw said, according to PTI.

The move builds on the government’s existing cluster-based push in the chemicals space and comes at a time when several domestic chemical makers are already expanding capacity to capture a larger share of global supply chains.

How The Scheme Works

• The Centre will provide a grant of up to Rs 1,000 crore per park, subject to a minimum matching contribution of Rs 500 crore from the concerned state government
• Vaishnaw described chemicals as a foundational sector that supplies raw materials to many other industries
• The government said the scheme aims to develop the chemical industry across its full value chain, spanning upstream, downstream and ancillary units, while lowering logistics costs
• The actual investment in the three parks is expected to be well above the Rs 3,030-crore outlay, since the Centre’s support only covers shared infrastructure

Stocks That May Draw Investor Attention

Dedicated chemical parks typically lower capital costs for manufacturers by offering shared logistics, utilities and testing facilities, a model that has previously benefited companies expanding under Bulk Drug Parks, Plastic Parks and the PCPIR framework. Names that market commentators have flagged as possible beneficiaries of the government’s chemical-park push include:

• SRF Ltd (SRF.NS): India’s most diversified fluorochemicals and specialty chemicals maker, with refrigerants and packaging films as additional growth levers
• Aarti Industries Ltd (AARTIIND.NS): a benzene-chemistry specialist supplying pharma and agrochemical intermediates
• Deepak Nitrite Ltd (DEEPAKNTR.NS): a large basic and specialty chemicals producer with ongoing capacity expansions
• Navin Fluorine International Ltd (NAVINFLUOR.NS): a fluorine-chemistry player serving pharma and crop-protection clients
• PI Industries Ltd (PIIND.NS): India’s largest custom synthesis and manufacturing agrochemical company
• Vinati Organics Ltd (VINATIORGA.NS): a global leader in specialty monomers such as IBB and ATBS
• Atul Ltd (ATUL.NS): a diversified bulk and specialty chemicals maker
• Balaji Amines Ltd (BALAMINES.NS): an amines and derivatives producer with a low-debt balance sheet
• UPL Ltd (UPL.NS): one of India’s largest agrochemical and crop-protection companies

Why It Matters

India is currently the sixth-largest chemical producer globally and third in Asia, with the sector contributing close to 7% of GDP and over 8% of manufacturing gross value added. Industry analysts have pegged the country’s specialty chemicals opportunity at close to $100 billion by 2030, aided by global supply chains diversifying away from China. Plug-and-play chemical parks, built on the cluster model used for Bulk Drug Parks and PCPIRs, are expected to cut project timelines and strengthen India’s position in global chemical value chains, particularly in specialty chemicals and downstream segments. For listed chemical makers, shared infrastructure inside these parks could translate into lower capital costs on future expansions and shorter timelines for new capacity to come on stream, factors that brokerages typically weigh into earnings estimates for the sector.

Source: PTI; Press Information Bureau; Union Budget 2026-27 documentation; sector commentary from Business Standard, Univest