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...

Ethanol production capacities, impact on Farmers, and Government Plans Twitter Handle: @shuchi_nahar Ethanol was rarely discussed in the country about 7-8 years ago. But now ethanol has become one of the major priorities of 21st century India. The focus on ethanol is having a better impact on the environment as well as on the lives of farmers. India’s requirement of ethanol for petrol blending will increase from 173 crore liters in 2019-20 to 1,016 crore liters in 2025-26. To enable the rollout of ethanol production across India, ethanol may be supplied from surplus to deficit states based on the requirements to ensure uniform availability of ethanol blends in the country. To achieve the Modi Administration’s E-20 blending goal by ethanol supply year (ESY) (December-November) 2025, India would need to procure approximately 11 billion liters (BL) of ethanol for blending with petroleum. As of November 2021, India’s concentrated ethanol production capacity totaled slightly above 6 bi...

Chambal Fertilizers - Company overview &  Urea industry synopsis in India Twitter Handle: @shuchi_nahar Company Overview   Incorporated in 1985 and based in Kota, Rajasthan, Chambal has the largest installed urea capacity of 3.00 million tonnes in the private sector in India. Chambal is the largest private player in the urea industry in India in terms of production capacity. Its share in the total domestic urea production has increased to 13.4%, driven by the ramp-up of its Gadepan-III plant. The company has maintained its share in the non-urea fertilizers segment. The company has sold 0.93 million tonnes of DAP/muriate of potash/nitrogen phosphorus potassium during the first 9 months of fiscal 2022, down from 1.60 million tonnes in the corresponding period of the previous fiscal because of the global shortage of the fertilizers amidst the Russia-Ukraine war. Its significant market share in north India is supported by its strong Uttam Vir brand and robust distribution ne...

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...

The evolution is here -  A way towards a sustainable environment Twitter Handle: @shuchi_nahar What is Green Chemistry? Green chemistry is an emerging focus among manufacturing industries that minimizes pollution at a molecular level. Green chemistry is the design of chemical products and processes that reduce or eliminate the use or generation of hazardous substances. Companies are actively designing novel concepts to reduce the emission of hazardous substances and actively switching their production process to green chemistry. The tremendous shift towards Green Chemistry Green chemistry is an emerging focus among manufacturing industries that minimizes pollution at a molecular level. The idea is that companies can adopt new scientific processes to minimize the toll their products take on the environment. Companies are actively designing novel concepts to reduce the emission of hazardous substances. The changes can be as large as changing the entire chemistry or even as small ...

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...

Rapid Increase in Ethanol Production Capacity Twitter Handle: @shuchi_nahar Two Different types of processes  to produce Ethanol To produce 684 crore liters of ethanol by the sugar industry by 2025-26, sugarcane equivalent to 60 LMT of surplus sugar would be diverted to ethanol. In the current sugar season, 2020-21 more than 20 LMT of sugar is estimated to be diverted. To produce 666 crore liters of ethanol/ alcohol from food grains by 2025-26, about 165 LMT of food grains would be utilized. At present damaged food grain availability is around 40 lakh tons in the country. In 2020-21 approximately 20 lakh ton maize is surplus FCI Rice is also sufficient in stock (266 LMT) and it will continue to remain robust as procurement of paddy/rice at MSP continues at expected levels. The country is producing sufficient food grains and sugar to meet the requirement for ethanol. Molasses-based distilleries have also been offered interest subvention to convert them to dual feed, to convert b...