Rossari Biotech Ltd Management Discussions

( Specialty Chemicals

\ The specialty chemicals industry enters 2026 at a critical and increasingly competitive juncture, marked by overcapacity and uneven demand recovery across end-use sectors, and volatility in input and energy costs. These factors have compressed margins and sharpened the focus on operational efficiency and cost optimisation, as firms compete on performance, consistency, and customisation. Evolving global regulations are significantly influencing industry strategies, with stricter environmental, health, and safety norms particularly in Europe and North America, reshaping production processes and compliance requirements. Rising customer expectations for sustainable solutions, including greener chemistries and bio-based alternatives, are increasing compliance and capital costs, but also creating opportunities for differentiation through innovation and value-added offerings.

In parallel, raw material price volatility, supply chain disruptions, and shifting trade dynamics are prompting reassessment of sourcing strategies and regional footprints. Simultaneously, customers across pharmaceuticals, agrochemicals, personal care, electronics, and construction demand greater reliability, customised formulations, and faster development cycles.

Overall, the industry is transitioning from volume- and price-led growth to a disciplined, innovation-driven, and efficiency-focused operating model. Near-term challenges from demand volatility and cost inflation persist, but differentiated product portfolios and strong regulatory compliance enable resilience. Altogether, companies that adapt to shifting global and customer dynamics will be better positioned to navigate the evolving market environment and build sustainable long-term growth.

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End-use sectors are adopting advanced coatings, adhesives and catalysts to improve durability, efficiency and product performance.

Regulatory pressure and customer preference are driving demand for eco-friendly, low-VOC, bio-based and energy-efficient specialty chemicals.

Specialty chemicals are gaining wider use across paper, pulp, energy, packaging, adhesives and sealants to improve process efficiency.

Manufacturing-led economic growth is increasing demand for specialised chemical inputs across industrial value chains.

Technology improvements, efficient manufacturing and stronger logistics are enabling higher adoption of advanced specialty chemical solutions.

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] The Indian specialty chemicals industry is poised for strong growth, driven by rising incomes, urbanisation, and increasing demand from end-use sectors. Government-led infrastructure initiatives are boosting domestic demand, particularly for construction chemicals, supporting sectoral expansion. In addition, policies such as PLI schemes, Make in India, and SEZ expansions are strengthening local manufacturing and reducing import dependence.

Meanwhile, the China+1 strategy has enhanced Indias role in global supply chains, improving access to export markets and supporting export-led growth. Stricter environmental regulations in China and ongoing U.S.-China trade tensions are further encouraging global manufacturers to diversify sourcing, creating additional opportunities for Indian specialty chemical exporters.

Government Support: Recognising the strong export potential of the sector, the Indian government is increasingly promoting domestic specialty chemical manufacturing. Policy initiatives focused on removing structural barriers and improving the ease of doing business are encouraging investment and capacity expansion.

Schemes for Chemicals: The refinement of the proposed PLI scheme for the chemicals sector is expected to attract fresh investments, particularly in export-oriented specialty chemicals, strengthening Indias global competitiveness.

Consumption levels in India remain significantly below global averages on a per capita basis, indicating substantial headroom for growth. As the economy expands and industrialisation deepens, domestic demand for specialty chemicals is expected to rise sharply.

Higher usage of specialty chemicals across sectors is likely as Indias economy continues to grow and industrial development progresses, reinforcing longterm demand fundamentals.

Supply Chain Diversification: New opportunities, like China+1 strategy, have emerged for Indian players as global supply chains diversify, strengthening their position in international markets.

\ The personal care ingredients market is transforming

beyond basic functional components towards high-efficacy, science-backed solutions. This shift is driven by changing consumer expectations, with growing demand for clean beauty formulations, sustainable and traceable sourcing, and scientifically validated ingredients. Consumers increasingly seek products delivering measurable results while aligning with environmental and ethical considerations.

The Beauty and Personal Care Products Market expanded from US$ 523.73 billion in 2025to US$ 563.43 billion in 2026 and is forecast to continue growing at a CAGR of 8.07%, reaching US$ 901.96 billion by 2032. This expansion highlights the sectors dynamism, propelled by changing consumer priorities, innovation in formulations, and adoption of diverse retail strategies.

Premiumisation in Skin and Hair Care: Advanced beauty routines are increasing demand for actives, conditioning systems, sensory modifiers and performance ingredients.

] The textile chemicals market is entering a decisive phase of transformation, shaped by sustainability mandates, stricter chemical compliance, PFAS-free reformulation, ZDHC-aligned sourcing expectations, and rising demand for low-effluent, performanceenhancing solutions. In 2025-26, these shifts have become more pronounced as global brands increasingly prioritise traceability, safer chemistries, functional finishes, and responsible processing across their supply chains. At the same time, tariff volatility and changing trade dynamics are influencing sourcing decisions across the textile value chain, affecting customer pricing, order flows, export competitiveness, and procurement strategies. For textile manufacturers, this has intensified the need to improve process efficiency, reduce resource consumption, manage input costs, and adopt chemistry-led solutions that support both compliance and competitiveness.

Against this backdrop, textile chemical companies that combine innovation, application expertise, sustainable formulations, and customer-specific technical support are better placed to support manufacturers navigating a more complex global environment. This executive overview provides strategic clarity and actionable insights for senior decision-makers responding to evolving regulations, cost pressures, sustainability expectations, and supply-chain realignment. The textile chemicals market expanded from US$ 29.88 billion in 2025 to US$ 31.47 billion in 2026. It is expected to continue growing at a CAGR of 5.59 %, reaching

.. US$43.75 billion by 2032.

Expanding Textile Production: Growth in apparel, home textiles, synthetic fibres and technical fabrics is increasing demand fortextile chemicals.

Performance-Led Fabric Demand: Demand for UV-resistant, antimicrobial, antistatic, wrinkle-resistant and other functional fabrics is driving advanced chemical adoption.

Environmental regulations and sustainability expectations are increasing demand for eco-friendly, bio-based and low-impact formulations.

Growth in Technical Textiles: Agriculture, automotive, healthcare and protective textile applications are creating demand for specialised performance chemicals.

Digital Printing Adoption: Digital printing is increasing demand for specialised inks, binders, pretreatment chemicals and finishing solutions.

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The animal nutrition market expanded from US$ 35.03 billion in 2025 to US$ 38.77 billion in 2026. It is projected to reach US$ 74.75 billion by 2032 at a compound annual growth rate (CAGR) of 11.43 %. This sustained growth is driven by increased demand for efficient and sustainable nutrition solutions. Industry participants are adapting to the intensifying consumer preferences, evolving livestock management practices, and more complex regulatory requirements. Companies across the value chain are aligning their strategies to capture emerging opportunities and respond to the higher bar set for nutritional efficacy, safety, and sustainability.

Rising Animal Protein Demand: Growing consumption of meat, dairy, poultry and fish is increasing demand for nutrition additives and feed supplements.

Commercial livestock and aquaculture growth is driving demand for balanced feed, additives, minerals, vitamins and enzymes.

Focus on Animal Health and Productivity: Nutrition chemicals are increasingly used to improve growth, reproduction, lactation, gut health and overall animal performance.

Intensive Farming Practices: Large-scale farming systems are increasing the need for precise nutrition, feed efficiency and performance-enhancing ingredients.

Advanced formulations and new ingredient launches are supporting precision nutrition and better animal health outcomes.

Sustainable Feed Solutions: Demand is rising for nutrition solutions that improve productivity while supporting safer and more sustainable livestock practices.

] Recent changes in U.S. tariffs and evolving trade policies are reshaping procurement strategies and driving a geographic manufacturing redistribution within the agrochemicals market. The agrochemicals market expanded from US$ 91.00 billion in 2025 to US$ 96.02 billion in 2026. With a projected CAGR of 6.75 %, the market is expected to reach US$ 143.79 billion by 2032. This steady trajectory reflects the sectors ability to adapt to increased regulatory demands, shifting supply chain models, and evolving sustainability targets.

Propelled by ongoing advancements in formulation science and digital agriculture, the market is further shaped by global procurement trends and intensified adoption of precision tools. Together, these forces enable companies to navigate uncertainty while directly addressing changing buyer expectations and supply requirements.

Rising Food Demand: Population growth and rising food consumption are increasing the need for higher agricultural productivity.

Need to Enhance Crop Productivity: Limited arable land is pushing farmers to use agrochemicals for better yield and crop quality.

Favourable Government Policies: Subsidies, import reforms, labelling standards and sustainability regulations are supporting modern agrochemical adoption.

Climate-Linked Pest Infestation: Changing rainfall, rising temperatures and new pest patterns are increasing demand for advanced crop protection chemicals.

Innovation in Agrochemical Products: R&D in

controlled-release fertilisers, bio-based inputs and precision solutions is improving product efficiency.

Sustainable Farming Shift: Demand is rising for low impact agrochemicals that improve productivity while reducing environmental impact.

Growth in Emerging Regions: South America and Asia-Pacific are driving demand through food security needs and wider crop protection adoption.

\ The surfactants market demonstrated noteworthy expansion, rising from US$ 52.85 billion in 2025 to US$ 55.33 billion in 2025. Sustained by a 4.90 % compound annual growth rate, it is projected to reach US$ 73.89 billion by 2032. This steady trajectory reflects growing demand across diverse use cases, supported by innovation in sustainable formulations and evolving applications in home and personal care, alongside increasing adoption in industrial and agrochemical sectors.

However, recent tariff actions in the U.S. have introduced multi-faceted challenges for surfactant sourcing and procurement. These developments are prompting organisations to reconsider supplier portfolios and inventory strategies.

Home and Personal Care Demand: Rising consumption of detergents, soaps, household cleaners, shampoos, skincare, cosmetics and hygiene products is driving higher global demand for surfactants.

Industrial Cleaning Applications: Manufacturing facilities, food processing plants and commercial institutions are adopting advanced surfactant-based cleaning solutions.

Agrochemical Expansion: Surfactants are increasingly used in pesticides, herbicides and agricultural formulations to improve dispersion and effectiveness.

Sustainable Formulations: Environmental concerns and regulations are driving demand for biodegradable, renewable and bio-based surfactants.

Wider Industrial Applications: Oilfield chemicals, textiles, paints, coatings, pharmaceuticals and food processing are expanding surfactant usage.

Innovation in Specialty Surfactants: Advanced emulsification, low-toxicity and high-performance formulations are creating new growth opportunities.

] The ethoxylates market increased from US$ 15.02 billion in 2025 to US$ 16.03 billion in 2026 and is projected to grow at a CAGR of 6.87%, reaching US$ 23.92 billion by 2032. Ethoxylates play an important role in both industrial and consumer applications because of their strong surfactant properties and formulation flexibility.

The market is gradually evolving as stricter regulations and evolving consumer preferences drive demand for safer and more sustainable chemical solutions.

As a result, manufacturers are focusing on alternative formulations, improved raw material sourcing, and process innovations to address concerns related to biodegradability, impurity levels, and supply chain transparency.

Cleansing and Grooming Formulations: Shampoos, cleansers and skincare products are driving demand for ethoxylates used in cleansing and formulation stability.

Cleaning Products Consumption: Detergents and cleaning products are increasing consumption of alcohol ethoxylates as effective nonionic surfactants.

Agrochemical Applications: Ethoxylates are used as wetting agents to improve pesticide spreading, penetration and application efficiency

Industrial Manufacturing Growth: Wider use in industrial formulations, drilling fluids and demulsifiers is supporting steady market demand.

Sustainable Alternatives: Methyl ester ethoxylates are gaining traction due to mildness, ecological advantages and use in cosmetics and industrial applications.

\ The silicones market grew from US$ 22.89 billion in 2025 to US$ 24.65 billion in 2026. It is expected to continue growing at a CAGR of 8.59%, reaching US$ 40.79 billion by 2032. Silicones are versatile engineered materials, with properties including thermal stability, chemical resistance, electrical insulation, biocompatibility, and design flexibility. Due to these reasons, they are widely used in sealing, insulation, lubrication, electronics, and healthcare. As industries demand higher reliability and multifunctional performance, silicones have evolved from commodity materials to strategic components in product development.

In recent years, the silicone industry has been reshaped by sustainability and changing demand trends. Manufacturers are focusing on low-carbon processes, emissions control, green chemistries, solvent-free formulations, and closed-loop manufacturing. These efforts are influencing product innovation and supplier selection across both industrial and consumer supply chains.

Solar PV and Energy Transition: Rising solar installations and renewable energy adoption are increasing demand for polysilicon and silicon metal.

Automotive Lightweighting and EV Growth: Electric vehicles and efficient mobility are driving demand for aluminium-silicon alloys in high-performance components.

Aluminium Alloy Applications: Silicon improves aluminiums strength, castability and corrosion resistance, supporting use in automotive, transportation and construction.

Advanced Silicone Demand: Construction, electronics, healthcare and industrial applications are increasing demand for high-quality silicone-based materials.

Low-Carbon Production Shift: Customers are seeking silicon produced through renewable power, efficient furnaces and lower-carbon manufacturing pathways.

Al-led Semiconductor Demand: AI infrastructure, hyperscaler capex, inference workloads, custom silicon, HBM and advanced packaging are creating sustained semiconductor demand beyond consumer device cycles.