Vinati Organics is a specialty chemicals company producing aromatics, monomers, polymers and other speciality products.
It is the world’s largest manufacturer of isobutyl benzene (IBB) and 2-acrylamido 2-ethylpropane sulfonic acid (ATBS).
IBB and ATBS have a global market share of 65% and 45% respectively.
The company has its presence in nearly 22 countries. Products are exported to customers across the US, Europe and Asia.
Exports contributes more than 70% of the top line.
IBB, a specialty organic intermediary, is used as a raw material to make ibuprofen, an anti-inflammatory analgesic bulk drug.
ATBS contributes nearly 45% of company’s revenue which is a specialty monomer, finding applications in oil-field recovery, water treatment, acrylic fibre, adhesives, personal care products, medical hydro-gel, mining, coatings and dispersing and flocculating agents.
The company has two major plants located in Maharashtra. One plant of capacity 16,000 tonnes per annum is at Mahad and the other of 47,500 tonnes per annum is at Lote Parashuram.
The Mahad unit is the biggest IBB manufacturing facility in the world.
For future growth, company has set up a new plant for producing isobutyl aceto phenone, an intermediary between isobutyl benzene (IB) and ibuprofen.
Another plant is expected to establish to produce para tertiary butyl toluene and para tertiary butyl benzoic acid.
Vinati Organics Ltd.A Multibagger Stock?
These products find application in perfumery, personal care and as polymer additives.
Vinati organics have a long term growth story intact. With health growth in its product basket and stagnation of Chinese chemical industry due to government pollution control measures and strengthening of Chinese yuan against the dollar will give a competitive advantage in the global space for Indian chemical companies as well as vinati organics.
The Make in India initiative by the government and approval of GST bill augers well for the Indian chemical industry.
However the key risk for the company is overdependence on exports, where global economic slowdown would hamper its growth.
Also, the company’s margins is affected due to rise in crude prices as they impact the raw material cost of the company.
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Address: B-12 & B-13/1, M I D C Industrial Area, Mahad, Raigad Dist, Mahad, Maharashtra - 402309
| Phone: 2145-232012/13/14
| Fax: 02145- 232010
Email: [email protected]
Registrar & Transfer Agent: Sharex Dynamic (India) Pvt Ltd
Address: Unit -1, Luthra Ind.
Premises , Safed Pool, Andheri-Kurla Road, Andheri (E), Mumbai
| Phone: 022-28515606/5644
| Fax: 022-28512885