A Chemicals, PetroChemicals, Fertilizers (Specialty Chemicals) entity from India is looking for Strategic Investment.

Posted By - Investment Banker Posted date - 08/04/2022

BUSINESS BRIEF

  • This company is a fast-growing manufacturer and supplier of surfactants and specialty chemicals.
  • The product portfolio includes – LABSA 90% and 96% (Linear Alkyl Benzene Sulphonic Acid), Sulphuric Acid, Nitric Acid, Soda Ash, Sulphur Trioxide, Alpha Olefin Sulfonate, Oleum 23%, etc.
  • The operations have historically been running in leased space with a capacity of 2,000 MT per month. Presently, the company has purchased a plant of 2 Acre with a capacity of 6,000 MT per month in a single shift and is in the process of commencing operations in the new facility.
  • The management team has a proven track record of supplying LABSA products and it is supported by a symbiotic array of machines and a team of manufacturing staff to oversee operations.
  • The finished quality of the products meets the Indian standards within 12 months of the journey, The company has supplied ~ 3,950 metric tons of LABSA product and demonstrated merit by acquiring 55 clients (60% of them are repeat customers).
  • Major revenue contribution  is from LABSA product and achieved total revenue of INR 24 Crores in FY22

 

Valuation Expectation- The business expects an Enterprise Value of INR 60Cr

Financial Trend-

  • FY22: 24Cr
  • FY23: 152Cr
  • FY24: 261Cr
  • FY25: 346Cr

Key Clientele:

  • Bharathi Consumer Care
  • Pavan Chemical
  • Vinayaka Chemicals
  • Radium
  • Saroj Industrial

Proposal
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Industry

Chemicals, Petrochems, Fertilizers

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Sub Industry

Specialty Chemicals

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Deal Size

INR 10 - 12 Cr

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Motives For Sellout

Raising Capital

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Justification

The company is in the advanced level of discussion with larger customers such as HUL, P&G and Jyothi Laboratory, to bag bigger contracts for the supply of LABSA products.

Management is open to continue with the business for handholding the new investor/buyers

Business Operation Information
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Industry

Chemicals, Petrochems, Fertilizers

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Sub-Industry

Specialty Chemicals

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Division

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Division`s Buyers/Customers

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Division`s Products/Services

Financial Information
2019 (in Cr) 2020 (in Cr) 2021 (in Cr) 2022 (in Cr)
Sales
N.D N.D N.D INR 24 Cr
EBITDA
N.D N.D N.D N.D
PAT
N.D N.D N.D N.D
TOTAL DEBT
N.D N.D N.D N.D
Business Documents

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