J.G. Chemical Limited IPO
i. J.G. Chemical is India’s largest zinc oxide manufacturer in terms of production and revenue for zinc oxide manufacturing through French process, which is the dominant production technology for producing zinc oxide and has been adopted by all the major producers in Americas, Europe and Asia. The market share of the Company is around 30%. They sell over 80 grades of zinc oxide and are among the top ten manufacturers of zinc oxides globally.
ii. Their product caters to a wide spectrum of industrial applications, including in the rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, speciality chemicals, lubricants, oil & gas and animal feed.
iii. Owing to the legacy of over four decades in manufacturing businesses, the company benefits from its experience in catering to a wide array of customers and they have built a long-standing relationship with customers across end-user industries in the tyres, ceramics, rubber, paints, cosmetics and batteries industry. Over the last three years, they marketed and sold its product to over 200 domestic customers and over 50 global customers in more than 10 countries.
iv. In India, tyre industry accounts for 70% of rubber consumption (Source: CARE Report) and the companies in the tyre industry are the largest consumers of our product.
v. Along with being suppliers to 9 out of top 10 global tyre manufacturers and to all of the top 11 tyre manufacturers in India, they also supply to leading paints manufacturers, footwear players and cosmetics players in India
i. Leading market position with a diversified customer base.
ii. High entry barriers in key end-use industries
iii. Strong and consistent financial performance
Objects of the J.G. Chemical Limited IPO:
J.G. Chemical Limited IPO Details:
Promoters And Management:
Financials of J.G. Chemical Limited IPO:
|Pariculares ( In Crore )||2020||2021||2022|
|Revenue from Operations||399||435||612|
|Cost of Materials Consumed||339||345||506|
|Purchases of stock-in-Trade||1.93||0.51||0.49|
|Changes in Inventories||-1||3||-10|
|Employee Benefits Expense||9||10||13|
|Depreciation & Amortisation||1||2||2|
Comparison With Peers:
As Per DRHP there is no listed shares in India.
Recommendation on J.G. Chemical Limited IPO:
To be updated once J.G. Chemical files for RHP.