Indian Emulsifier Limited

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Indian Emulsifier Limited, initially established as “Indian Emulsifier Private Limited,” was incorporated under the Companies Act, 2013 on December 5, 2020. The incorporation was carried out by the Registrar of Companies in Mumbai, Maharashtra. Marking a significant transition, the company underwent a transformation into a public limited company. Consequently, the organization’s name was updated to “Indian Emulsifier Limited” with a fresh Certificate of Incorporation issued on January 5, 2024.

Foundational Vision: The foundation of the company was laid by the promoter, Yash Tikekar, with a forward-looking vision to pioneer the specialty chemicals sector. The core idea was to provide tailor-made chemical solutions that cater to a diverse array of customer needs, underscoring the belief that “Chemistry Drives Performance.”

Operational Footprint and Facilities: Indian Emulsifier Limited operates a state-of-the-art manufacturing facility located at Plot No. E-10, MIDC, Lote Parshuram, Tal. Khed, Ratnagiri, Maharashtra. This plant boasts a robust production capacity, which as of March 31, 2023, stands at 4,800 metric tons per annum. The facility is equipped with advanced process control systems, an innovative research and development center, as well as quality control and application laboratories. The registered office of the company is situated at Shop 206, Floor 2, Sumer Kendra, Shivram Seth, Amrutwar Road, near Doordarshan Kendra, Off Pandurang Budhkar Marg, Worli, Mumbai.

Certifications and Standards: In 2021, the company achieved ISO 9001:2015 certification, reflecting its commitment to maintaining international quality standards in its operations and outputs.

Product Portfolio and Industry Reach: Indian Emulsifier Limited specializes in the manufacture and supply of specialty chemicals including Esters, Amphoterics, Phosphate Esters, Imidazolines, Wax Emulsions, and SMO & PIBSA Emulsifiers. The company caters to a wide range of industries such as mining, textile, cleaning, PVC/Rubber, personal care, food, and other sectors. The enhanced facility, equipped with multiple high-pressure stainless steel reactors, allows for a flexible production capacity ranging from 100 kg to 8,000 kg per batch. The facility is designed to perform a variety of chemical reactions efficiently, operating within a temperature range of 10°C to 250°C and pressures from 5 kg to 8 kg/cm^2.

Operational Excellence and Innovation: The company prides itself on its multipurpose facility designed for high flexibility to meet evolving customer demands. The technical team comprises highly qualified personnel with deep expertise in various fields, ensuring that every batch meets the highest standards of quality and innovation.

Indian Emulsifier Limited continues to grow and adapt, reinforcing its position as a leader in the specialty chemicals manufacturing sector, driven by a commitment to excellence and customer satisfaction.

Objects of the Indian Emulsifier Limited:

The Company proposes to utilize the Net Proceeds from the Issue towards funding the following objects: i. Funding of capital expenditure requirements of their Company towards Plant & Machinery, Civil work and installation cost thereon; ii. Funding Working Capital Requirements of the Company; iii. General corporate purposes.
DRHP of Indian Emulsifier Limited
RHP of Indian Emulsifier Limited

Indian Emulsifier Limited Details:

Open Date: May 13 2024
Close Date: May 16 2024
Total Shares: 32,11,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 42.39 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 125 - 132 Per Equity Share
Listing At: NSE Emerge
Listing Date: May 21 2024

Promoters And Management:

Yash Tikekar, aged 37 years is the Chairman and Managing Director of the Company. He has completed Bachelor of Arts from Jai Hind College, Mumbai in the subject of Economics major in the year 2008 and Post Graduate Diploma in Finances Management from SVKM’s Narsee Monjee Institue of Management Studies (NMIMS) School of Distance Learning in the year 2013. He is the Founder, Promoter and one of the First Director of the company, later he was appointed as the Chairman and Managing Director of the company with effect from December 27, 2023 for a period 5 years. He leads the product development team in developing components & looks after the Production in the Company and looks after the overall business operations of the Company. He is a high integrity and energetic leader known for his ability and create successful outcome in complex situations. He has the experience of more than Ten years in this field of work of speciality chemicals. Abhay Tikekar, aged 64 years is the Whole Time Director of the Company. He has completed Bachelor of Commerce (Honors Course) from University of Delhi in the year 1978. He appointed as the Whole Time Director of the company with effect from December 27, 2023 for a period 5 years. He looks after the overall business operations of the Company. His functional responsibility in the Company mainly focused on company growth and finances. He possesses a strong work ethic, excellent problem-solving abilities, and a passion for driving growth. He has an experience of Nine year in the Industry. Rajesh Madhukar Joshi, aged 60 years is the Non-Executive Director of the Company. He has completed LLB from University of Pune in the year 1996 and became a member of the Bar Council of Maharashtra and Goa in the year 1998. He is appointed as the Non-Executive Director of the company with effect from December 27, 2023. He brings with him the energy, vision, and plan to grow the company exponentially in the coming years. He has the experience of more than two decades in legal field.

Financials of Indian Emulsifier Limited:

Particulars ( In Lakhs )
2021
2022
2023
9M-FY24
Revenue from Operations 0 1,768 4,118 4,867
Other Income 0 0 0.4 3
Total Revenue 0 1,768 4,118 4,870
Cost of Material Consumed 0 1,450 3,240 3,556
Change in Inventories 0 -88 -226 -138
Employees Benefit Expenses 0.1 97 51 41
Other Expenses 0.2 229 266 289
EBITDA -0.4 79 787 1,122
Depreciation & Amortisation 0 21 118 120
Finance Cost 0 47 205 189
EBIT -0.4 59 668 1,003
OPM (%) 0.00% 4.50% 19.10% 23.04%
PBT -0.4 12 464 814
Tax 0 8 74 139
PAT -0.4 4 389 675
NPM (%) 0.00% 0.24% 9.46% 13.86%
No.of Shares 122.22 122.22 122.22 122.22
EPS -0.003 0.03 3.18 5.52

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Indian Emulsifier Limited 41 4 3.18 41.4 132 161
Fine Organic Industries Limited 3,023 618 201.60 28.9 4,216 12,926
Fineotex Chemical Limited 517 90 7.97 33.1 345 3,825
* All the data is as per FY23.

Recommendation on Indian Emulsifier Limited:

Review and Recommendation of Indian Emulsifier by team IZ is 6/10. 1. Indian Emulsifier specializes in the production of various specialty chemicals including Esters, Phosphate Esters, Imidazolines, and more. These products find applications across diverse industries such as Mining, Textiles, Personal Care, Food, and others. 2. With a focus on both small scale and bulk manufacturing, the company adapts to varying customer needs through a flexible, multipurpose facility. The ability to manage reactions across a broad range of conditions further exemplifies its technical capabilities. 3. SWOT Analysis Strengths i. Extensive experience in sales and distribution, both domestically and internationally, through associated group companies. ii. Diverse product portfolio and strategic focus. iii. Strong marketing and sales teams with deep expertise in specialty chemicals. Weaknesses i. Dependency on crude oil prices leading to pricing fluctuations. ii. Challenges in penetrating new international markets requiring significant marketing investments. iii. Uncertainty in product demand contributing to higher inventory and financial costs. Opportunities i. Potential for increased market value and expansion into untapped export markets. ii. Ability to leverage strong process and chemistry skills to maximize production capacity. Threats i. Volatile pricing structures and intense global competition. ii. Regulatory and governmental policy changes impacting operational margins. 4. Competitive Landscape Despite stiff competition from both established players and regional newcomers, Indian Emulsifier Limited has consistently demonstrated growth through a structured operational framework. Its experience in fulfilling contracts and meeting customer demands effectively positions it as a formidable competitor in the specialty chemicals industry. The company's ongoing investment in R&D and quality control enables it to maintain a high standard of service and adapt to market changes effectively. 5. The Revenue has Increased from Rs.17 Crores in FY22 to Rs.41 Crores in FY23. 6. The EBITDA has Increased from 79 Lakhs in FY22 to 7 Crore in FY23. 7. The PAT has Increased from 4 Lakhs in FY22 to 4 Crores in FY23. 8. As per FY23, CFO/EBITDA is 0.73, As per FY24, EPS is 7.36, 9. Market Capitalization is 161 Crore & P/E is 17.92x based on FY24

Lead Manager of Indian Emulsifier Limited:

  1. EKADRISHT CAPITAL PRIVATE LIMITED

Registrar of Indian Emulsifier Limited:

  1. Maashitla Securities Pvt. Limited.

Company Address:

Indian Emulsifier Limited Shop 206, Foor-2, Sumer Kendra, Shivram Seth Amrutwar Road Near Doordarshan Kendra, Off Pandurang Budhwar Marg, Worli Mumbai-400018, Phone: 022-4783 8021 Email: info@indianemulsifiers.com Website: https://indianemulsifiers.com/

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