Shuchi Nahar's Weekend Blog!

Neogen Chemicals - Q1FY23 Result Overview Neogen Chemicals Limited (Neogen) reported robust financial performance during the quarter ended 30th June, 2022. The Company delivered revenues of Rs. 147.9 crore in Q1 FY23, depicting a growth of 75%. The strong topline performance was driven by incremental benefits accruing from the expanded capacity. This was supported by continued positive demand across key products. Profit after tax (PAT) stood at Rs. 11.1 crore during the quarter as compared to Rs. 7.4 crore in Q1 FY22. Strong double-digit growth in PAT was aided by good operating performance. During the period under review, the Company witnessed significant increase in the prices of Lithium raw materials which Company was able to pass on to the customers, resultantly protecting the absolute EBITDA. The EBITDA percentage margin decline is optical as it considers higher revenues and higher RM costs with preserved absolute earnings. Neogen Chemical Investor Presentation Developments  A...

A Agrochemicals - The rising trend for the chemical sector Twitter Handle: @shuchi_nahar The Indian economy has transformed substantially, from being a ship-to-mouth economy since its independence to become one of the largest economies in the world. Agriculture continues to be a dominant element in the Indian economy. Along with major economic reforms, Government programs, such as the Green Revolution have played a critical role in transforming the country’s agriculture sector and paved the way towards economic growth of the country. Agrochemicals specifically have played an important role in preventing crop losses to pests and improving overall productivity. Proper and scientific usage of agrochemicals may lead to approximately 20–30% improvement in productivity. Currently, the usage of agrochemicals in the Indian agriculture sector is amongst the lowest in the world. India is one of the leading producers in the world. Be it food grains, horticulture crops, oilseed production...

Indian speciality chemical companies are all set with huge CAPEX to cater to the demand Twitter Handle: @shuchi_nahar The Indian chemical industry is one of the fastest-growing industries in the world. Currently, it ranks 3rd in Asia and is the 6th largest market in the world with respect to output, after the US, China, Germany, Japan and South Korea. The industry's growth is mainly driven by consumption growth and export opportunity. Demand for speciality chemicals is owing to their performance-enhancing applications instead of composition. Businesses operating in this sector require deep knowledge and the ability to bring about consistent innovations. The speciality chemicals industry is a mature sector with proven benefits accruing to a wide range of end-use customers. It comprises about 17% of the global chemicals market and is expected to grow at an average of 5.3% between 2019 and 2024, picking up the pace on the back of emerging usage applications in a variety of industria...

Tata Chemicals -  https://myweekendspot.blogspot.com/2021/02/tata-chemicals-huge-opportunities-ahead.html Twitter Handle: @shuchi_nahar Recent updates about the company The chemical industry can play part in these sustainability solutions – reducing carbon emissions, turning waste into useful products, i.e. circular economy. Tata Chemicals can also play into chemicals going into health and hygiene – it already plays some bit through detergents and other applications of sodium bicarbonate. Grow volumes & maximize realizations in soda ash (price increased in Q2 FY22). Timely execution of capacity expansion: Salt 165k MT by end of FY22. Soda ash demand drivers Demand is likely to remain strong thanks to growing new applications in sustainability solutions. Soda ash demand is likely to pick up from the use of glass panels (flat glass) into solar cells, lithium carbonate (every ton needs one ton of soda ash), and the move to container glasses from plastics. This is likely to d...

Construction chemicals Industry - Unseen opportunities ahead Twitter Handle: @shuchi_nahar Introduction The global construction industry makes up about 12% of the world's GDP and construction is one of the main drivers of growth in almost every economy. The Global Construction & Building Materials Market size was estimated at USD 916.31 billion in 2019 and is expected to reach USD 946.26 billion in 2020, at a CAGR of 5.76% reaching USD 1,282.56 billion by 2025.  A variety of chemicals and advanced materials (CAMs)— ranging from concrete admixtures to polymer composites— are increasingly being used in the buildings and construction industry. Construction CAMs include concrete admixtures, adhesives and sealants, protective coatings, insulation materials, and polymer composites. As with other areas of the specialty chemicals sector, the construction chemicals industry is directly affected by increased globalization, consolidation, and significant consumption growth in rapidly de...

CAPEX Acceleration in Indian Chemical Companies -  USD 300 bn  domestic market by 2025 Twitter Handle: @shuchi_nahar India’s chemical industry was estimated to be worth USD 178 billion in FY 2019-20 and has a significant potential to reach USD 300 billion by FY 2024-25. In terms of demand, the industry has grown at approximately 1.3 times the country’s average GDP growth in the last five years and shows a strong linkage with its GDP. Indian specialty chemical sector has grown at 12%+ in the last five years and is well poised to expand its global market share to 7-8% from 4% in the coming years. The structural drivers are in place like global best practice manufacturing standard and R&D capability along with government impetus of make in India policy with pro-growth policies will act as a further catalyst for growth. Further, a global MNC looking at China Plus one strategy will help Indian incumbents to gain market share. In the short to medium term, supply disruptions ...

Recent disruption in China - Impact on Indian Chemical Companies Twitter Handle: @shuchi_nahar Specialty Chemical Article: https://myweekendspot.blogspot.com/2021/07/speciality-chemicals-market-size-demand.html Government scheme to boost: https://myweekendspot.blogspot.com/2021/07/government-initiatives-to-boost-growth.html Indian specialty chemicals companies are poised to ride tailwinds from macro drivers including ‘China+1’, import-substitution, growing costs within China (capital, operational, compliances), and currency benefits.  Recent disruptions in China will cause medium-term challenges for downstream producers while benefiting base chemical suppliers. More importantly, these frequent supply disruptions in China further strengthen the case for quality Indian players in the chemical domain. Growing import substitution by local industry makes a case for strengthening volume growth for base chemical/intermediate suppliers.  Recent disruptions in China (electricity s...