Liberal environment in the post-Gatt era and the reduction in tariffs, benefitted companies operating in India. Companies with competitive advantages, like having competence in the areas of high value-added chemicals, conforming with international quality standards, have translated this as a growth opportunity to establish a dominant presence in both international and domestic markets. These will do well going forward.

Ciba Speciality Chemicals has seen the overseas parent's shareholding increase to 89 per cent from 40 per cent, which was executed through an open offer. Domestic major Jubilant Organosys has also seen an increase in promoters by 3.3% since July 2001, through the creeping acquisition route from the open market.

The fine & specilaity chemicals industry has seen a lot of volatility, largely due to merger and acquisition activity in the international markets, which has spilled over to the MNC segment in the local market. For instance, Ciba Speciality Chemicals is a spin-off of the merger of the global behemoths Ciba and Sandoz, the other creation being the pharma giant Novartis. Similarly, Schenectady International, through its Indian affiliate, has increased its stake in Dr Beck and Company (which has resulted in the company being rechristened Schenectady Beck) and the Duncan group's Herdillia Chemicals (which is now Schenectady Herdillia Chemicals).

The speciality chemicals field covers a wide swathe and as such it is not practically possible for any single company to cover the entire spectrum. However, Jubilant Organosys (formerly Vam Organics) is one of as the largest Speciality Chemicals Company in India, it is the leading manufacturer of acetyl products, pyridines and pyridine derivatives, fine chemicals, animal feed, additives and other chemicals.

Head-quartered at NOIDA, near Delhi, the company is amongst the global leaders in manufacture and development of pyridine and pyridine derivatives. An international subsidiary in USA and a marketing office in China support t he company. Exports go to over 50 nations. The business is organised into three sectors namely Organic Intermediates- Speciality and Fine Chemicals, Performance Chemicals, Plant Health and Animal Nutrition. Revenues stood at over Rs.8000 million for 2001-02, impressive for a field where medium-sized companies and limited product portfolios are the norm. Speciality chemicals contribute 57% of this. The company has grown from a single-site operation to a three-site operation. It has gone in for the merger of group companies Vam Leasing Ltd and Vam Investments Ltd with itself.

Ciba Speciality Chemicals was incorporated in January 1997, following the global merger of Ciba Geigy and Sandoz to form Novartis. The speciality business of Ciba-Geigy was demerged into this company. Today the Indian arm has annual revenues of Rs.4800 million. It has also gone in for further restructuring, selling off its performance polymers division to the private equity arm of Deutsche Asset Management two years back, and taking up a 50% stake in Indo-Swiss Textile Chemicals Ltd (with which it subsequently amalgamated). It also absorbed another company, Pigment Specialities India Ltd, into itself.

Schenectady Herdillia Chemicals Limited is one of the largest domestic basic chemical manufacturers. Besides phenol, it has products like acetone, phthalic anhydride, phthalates, heat transfer media, and other basic chemicals, industrial solvents and plasticisers in its sales mix. While basic chemicals account for 50% of the sales, which stood at Rs.2600 million in 2001-02, industrial solvents contributed more than 25%. The company has a wide export market for its products. This company was earlier a Duncan Goenka group company till Schenectady increased its stake to 81 per cent from 61 per cent via a preferential allotment. Last year was a bad year for the company and the fund infusion is expected to help fund its expansion and modernisation plans.