Laxmi Organic Most Elaborate Company Details:Laxmi Organic is a leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost three decades of experience in large scale manufacturing of chemicals. Since its inception in 1989, it has been on a journey of transformation. It initially started manufacturing acetaldehyde and acetic acid in 1992, and soon thereafter moved on to manufacturing of ethyl acetate in 1996. It is currently among the largest manufacturers of ethyl acetate in India with a market share of approximately 30% of the Indian ethyl acetate market .Further, post completion of the YCPL Acquisition, its market share in the ethyl acetate market will be further enhanced. In 2010, it commenced manufacturing the Specialty Intermediates by acquiring Clariant’s diketene business. It believes that the diversification of our product portfolio into varied chemistries in Specialty Intermediates has enabled it to create a niche for itself .
Laxmi Organic is the only manufacturer of diketene derivatives in India with a market share of approximately 55 % of the Indian diketene derivatives market in terms of revenue in Fiscal 2020 and one of the largest portfolios of diketene products .
Its products are currently divided into two broad categories, namely the Acetyl Intermediates and the Specialty Intermediates. The Acetyl Intermediates include ethyl acetate, acetaldehyde, fuel-grade ethanol and other proprietary solvents, while the Specialty Intermediates comprises of ketene, diketene derivatives namely esters, acetic anhydride, amides, arylides and other chemicals. Our products find application in various high-growth industries, including pharmaceuticals, agrochemicals, dyes & pigments, inks & coatings, paints, printing & packaging, flavours & fragrances, adhesives and other industrial applications. The company also propose to diversify into manufacturing of specialty fluorochemicals to which end, it has recently acquired assets including plant & machinery, design and operating paperwork, REACH registrations and patents of Miteni, a manufacturer of organic fluorospecialties and electrochemical fluorination. We believe we are well placed to enter into the high margin specialty fluorochemicals space through this acquisition.
According to the Frost & Sullivan Report, given its expertise in the Acetyl Intermediates and the Specialty Intermediates segments, its entry into the fluorochemicals space will put it at a differentiated position from other chemicals manufacturers.
Over the years, it has significantly expanded its scale of operations and global footprint with customers in over 30 countries including China, Netherlands, Russia, Singapore, United Arab Emirates, United Kingdom and United States of America. It has established long-standing relationships with marquee players including Syngenta Asia Pacific Pte. Ltd., Alembic Pharmaceuticals Limited, Covestro (India) Private Limited, Dr. Reddy’s Laboratories Limited, Flint Group India Private Limited, Granules India Limited, Hetero Labs Limited, Heubach Colour Private Limited, Hubergroup India Private Limited, Huhtamaki India Limited, Laurus Labs Limited, Macleods Pharmaceuticals Private Limited, Mylan Laboratories Limited, Neuland Laboratories Limited, Parikh Packaging Private Limited, Suven Pharmaceuticals Limited, Colourtex Industries Private Limited, and UPL Limited. The company has offices in Leiden (Netherlands), Shanghai (China) and Sharjah (United Arab Emirates) which enables it to assess international demand and increase its customer outreach thereby bolstering its product development initiatives. It also has arrangements with third parties for usage of storage tanks in inter alia Mumbai for storage of raw materials and finished goods and Rotterdam (Netherlands), Antwerp (Belgium) and Genoa (Italy) for storage of finished products which enables it to deliver its products on short notice. Laxmi Organic has been the largest exporter of ethyl acetate from India in the six months ended September 30, 2020 and Fiscals 2020, 2019 and 2018 and one of the largest exporters of ethyl acetate to Europe from India since 2012 . For the six months ended September 30, 2020 and the Fiscals 2020, 2019 and 2018,
its Company’s revenue from exports of manufactured products contributed 23.17%, 24.24%, 27.80% and 22.18%, respectively, of its revenue from operations on a standalone basis.
Laxmi Organic currently has two manufacturing facilities in Mahad, Maharashtra , with one facility dedicated to Acetyl Intermediates and another dedicated to Specialty Intermediates , which are strategically located in proximity to several ports and each other. As at September 30, 2020, the aggregate installed production capacity at the AI Manufacturing Facility was 161,320 MTPA, while the aggregate installed production capacity at the SI Manufacturing Facility was 78,045 MTPA. It is also in the process of acquiring YCPL, having an aggregate installed production capacity of 10,500 MTPA of acetaldehyde and 29,200 MTPA of ethyl acetate as on September 30, 2020. It also has two distilleries located in Satara district and Kolhapur district in Maharashtra and together with the Jarandeshwar Distillery, the “Distilleries”) for the manufacturing of ethanol or specially denatured spirit. As at September 30, 2020, the Jarandeshwar Distillery had an installed production capacity of 8,100 KLPA while the Panchganga Distillery had an installed production capacity of 9,112 KLPA. The ethanol manufactured at the Distilleries is primarily consumed at the AI Manufacturing Facility and the SI Manufacturing Facility for the manufacturing of fuel-grade ethanol, ethyl acetate and certain Specialty Intermediates including several downstream products. Further, it is in the process of setting up a manufacturing facility at Lote Parshuram, Maharashtra for manufacturing fluorospecialty chemicals
The strengths of the company:
a. Leading manufacturer of ethyl acetate with significant market share;
b. Only Indian manufacturer of diketene derivatives with a significant market share and one of the largest portfolios of diketene products;
c. Diversified customer base across high growth industries and long-standing relationships with marquee customers;
d. Strategically located manufacturing facilities, vertical integration and supply chain efficiencies;
e. In-house research and development capabilities and consistent track record of technology absorption;
f. Global presence and low geographical concentration;
g. Differentiated business model, asset base, product mix and experience in handling complex chemistries create high entry barriers; and
h. Experienced promoter, board of directors and key managerial personnel.
For more study : www.laxmi.com
The promoters of Laxmi Organic:
Yellow Stone Trust &
Ravi Goenka
Laxmi Organic Industries Limited IPO Main Objects:
The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:
1. Investment in its wholly owned Subsidiary, Yellowstone Fine Chemicals Private Limited (“YFCPL”) for part-financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for fluorospecialty chemicals
2. Investment in YFCPL for funding its working capital requirements;
3. Funding capital expenditure requirements for expansion of its SI Manufacturing Facility
4. Funding working capital requirements of the Company;
5. Purchase of plant and machinery for augmenting infrastructure development at its SI Manufacturing Facility;
6. Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company & its wholly owned Subsidiary, Viva Lifesciences Private Limited
Company Financials:
| Particulars | For the year/period ended (₹ in millions) | ||||
|---|---|---|---|---|---|
| 30-Sep-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 10,371.32 | 10,706.33 | 10,144.88 | 8,947.34 | |
| Total Revenue | 8,143.55 | 15,386.21 | 15,743.23 | 13,960.75 | |
| Profit After Tax | 454.84 | 702.12 | 723.91 | 756.95 | |
Objects of the Issue:
- Investment in subsidiary firm, Yellowstone Fine Chemicals Private Limited (YFCPL) to partly finance the capex to establish a new manufacturing facility.
- To invest in YFCPL for financing working capital requirements.
- To finance the capex for expansion of SI manufacturing facility.
- To finance business working capital requirements.
- To purchase plant and machinery for infrastructure development at SI facility.
- To make prepayment or repayment of borrowings availed by the company and subsidiary, Viva Lifesciences Pvt Ltd (VLPL).
- To meet general corporate purposes.