Excel Industries - A Diversified Chemical Giant
Excel Industries Ltd. - A Diversified Chemical Giant
Company Overview
Excel Industries Ltd., one of India’s first domestic
chemical manufacturers. We are pioneers in indigenous chemical technology and
sustainable waste management. Innovation has always been a key driving force at
Excel. Since its inception in 1941, Today, the company is all set to embark on a
new phase of meaningful growth. Excel is one of India's premier manufacturers
of Specialty Polymer Additives and high-quality Veterinary APIs. The company is all set to apply its chemical
process know-how in the Pharmaceutical Intermediates industry while
continuing its leadership position in agrochemical intermediates and
phosphorous derivatives.
Industry Structure
– Chemical Business
·
The Size of the Indian specialty chemicals
industry is estimated at US $ 63 billion. Agrochemicals and Pharmaceuticals
(API & Intermediates) account for US $ 5.7 billion and US $ 12.8 billion
respectively.
·
The Company is a leading manufacturer of
specialty and performance chemicals.
·
Specialty and performance chemicals are
knowledge chemicals which require specialized skills and knowledge for
manufacture in terms of chemistry and engineering capabilities, material
handling and effluent treatment.
·
Specialty chemicals are required in a number of
end-use applications ranging from the Life Sciences (Agrochemical and
Pharmaceuticals) to Fast Moving Consumer Goods (FMCG). Production of specialty
chemicals require good knowledge of the requirements of the end-user
applications to whose needs they are meant to cater.
·
All specialty chemicals are subject to varying
degrees of regulatory requirements and the demand for these chemicals can be
impacted by changes in regulations.
(Source – Report of Credit Suisse on the
Agrochemicals segment & CII-KPMG report on Pharmaceuticals).
Industry Structure
– Environment Biotech Business
·
The Municipal Solid Waste Management activity in
India, which was hitherto fragmented and unorganized, is finally taking shape
of an organized industry on the back of streamlined legislation, legitimate
players.
·
In the wake of the COVID-19 Pandemic, the need
for scientific collection, treatment and disposal of waste will be highlighted
more than ever before.
Revenue Trend over
past 5 years
Segment-wise
Performance
The total sales turnover of the Company for the year 2019 –
20 was ` 702 crores as against ` 825 crores for the year 2018-19. The turnover
of the Chemicals Division for the year 2019 – 20 was ` 685 crores and that of
the Environment and Biotech Division was ` 17 crores.
Chemicals - Opportunities
in coming years
The company see good demand for the Organophosphorous (OP)
intermediates manufactured by the Company. The reason is that the good rabi
harvest has helped in depleting the channel inventories. The IMD has forecast a
normal monsoon in 2020 which augurs well for the demand of downstream
agrochemicals in the Kharif season.
The Phosphonate range of products finds application in
segments like water treatment, soaps, and detergents, industrial and
institutional cleaners (I & I), etc. The emphasis on sanitization and
cleaning in the wake of Covid 19 has meant a good demand for these products.
The demand from the US market has been good and we expect this to continue for
the balance of the year.
The Company has been able to establish itself as a serious
player in the pharmaceutical intermediates and API segment. The company is backward
integrated into these APIs and expects to consolidate its position and grow in
these products and it is also working on developing new APIs and intermediates.
In light of the supply disruptions from China in recent
years, there is a conscious strategic drive on the part of customers to
mitigate the risk of sourcing from China.
Environment &
biotech – Two major projects inline
The company bagged two key projects in the FY 2019-20. Operations
and Maintenance contract of 600 TPD Municipal Solid Waste Plant at
Varanasi for a period of two years starting January 2020.
Bio Mining of 900 TPD Legacy Waste at Ahmedabad starting January 2020
The ENBT business recorded a turnover of INR 17.78 Crores in the financial year
2019-20. The major contribution to the turnover is mainly due to the two key
projects mentioned above. The FY 2020-21 will be a challenging year. The demand
for Organic Waste Converter systems will below.
The Company will focus on additional sources of revenue to
make existing projects profitable, namely through the sale of Segregated
Combustible Fuel (SCF) and Refuse Derived Fuel (RDF).
Recent
Acquisitions to cater to rising demands in future
During the year, excel successfully acquired the
manufacturing unit of Net Matrix Crop Care, which is located in Andhra Pradesh.
The facility produces Sodium Trichloropyridinol which has a high-value
potential and can generate healthy revenues and profitability margins for The company, going ahead.
The acquisition of the Vizag site presents an exciting
opportunity to explore forward-looking strategic plans for the Company. Vizag
site is a fully functional plant, coming with regulatory clearances and adequate
open space for constructing new plants for products of the future.
Increase in Gross block while simultaneously increase in
Cash flow from operations
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