Anupam Rasayan India Ltd: "Continue focussing on CSM business, developing in-house innovative process for new complex chemistries"

Date:07-08-2021

In the past three financial years, Anupam Rasayan's revenue has grown at a CAGR of 34 per cent while operating profits grew at 40 per cent over the same period.

"We plan to continue focussing on our custom synthesis & manufacturing (CSM) business by developing an in-house innovative process for the new complex chemistries along with focussing on value engineering by replacing the lower-value products with higher-value ones." says Anand Desai, Managing Director, Anupam Rasayan. 

Q1. What is your outlook on the chemical industry in India? 

Anand Desai: The Indian chemical manufacturing industry’s outlook looks favourable. All the companies are expanding their capacities to cater to the rising demand from domestic & overseas markets. With global companies in Japan, Europe and the US seeking to de-risk their supply chains, which are dependent on China, the chemical industry has the opportunity for significant growth from here.  

Q2. What steps have been taken to optimise costs? 

Anand Desai: We have repaid Rs 530 crore of bank debt from the recently-concluded IPO. This would significantly bring down the finance cost. Also, we have recently invested Rs 43 crore in the solar plant, which is our conscious move towards reducing dependence on non-renewable sources. This would help us save Rs 10 crore annually. Further, we are evaluating various other cost reduction measures in the area of logistics, job work charges and environmental costs. 

Q3. What is your growth outlook for the coming years? 

Anand Desai: In the past three financial years, our revenue has grown at a CAGR of 34 per cent while operating profits grew at 40 per cent over the same period. So, we expect this trajectory to continue, based on the front-ended capital expenditure done by the company over the past 3 years of around Rs 800 crore. Ramping of newer units i.e. unit 5 and unit 6 will fuel the growth for the next 2 to 3 years. 

Q4. What is your outlook on exports? How do you intend to increase the market share for your products? 

Anand Desai: In the current financial year, our exports grew by 40 per cent. We have also added few new global clients this year. We have long-term contracts from global clients; so, the outlook on exports looks favourable. While we are a custom synthesis player, we manufacture very niche molecules for our clients, which have a niche market. Therefore, for most of the products, we capture a significant market share. 

Q5.  What are the most promising opportunities faced by your company? 

Anand Desai: 'China Plus One' strategy, followed by various global customers, is one of the promising opportunities for our speciality chemical business, which could potentially fuel our growth. Apart from that, the latest PLI Scheme i.e. Production-linked Incentive Scheme introduced by the Government of India for pharma could help us grow our pharma business. 

Q6. What are your top three strategic priorities? 

Anand Desai: Firstly, we plan to continue focussing on our custom synthesis & manufacturing (CSM) business by developing an in-house innovative process for the new complex chemistries along with focussing on value engineering by replacing the lower-value products with higher-value ones. Secondly, every year, we add new chemistries to our portfolio as well as work on future chemistries like ethylene oxide, Hofmann rearrangement, Cyclopropane, chlorination using POCl3 and PCl5, Butyl Lithium and Isobutylene, which will further strengthen our multi-step synthesis capabilities. Lastly, we intend to capitalise on the industry opportunity, as we know that industry has the capability of growing in double-digits from here on and we plan to grow alongside organically or inorganically.