Rossari Biotech Limited IPO
Rossari Biotech is one of the leading specialty chemical manufacturing companies in India based on sales for Fiscal 2019. They provide customized solutions to specific industrial and production requirements of its customers primarily in the FMCG, apparel, poultry, and Animal feed industries. The business is organized into three main product categories –
(a) Home, Personal care, and Performance chemicals.
They are the leading manufacturer of acrylic polymers in India (Source: F&S Report). As on 31.01.2020, the company manufacture over 300 products in the soaps and detergent, paints, inks and coatings, ceramics and tiles, water treatment chemicals, and pulp and paper industries. They also manufacture institutional cleaning chemical formulations for hospitality, facility management, airports, corporates, food service, commercial laundry, malls, multiplexes, educational sectors, places of worship, etc. They are in advanced stages of expanding to home, personal care and performance product portfolio to water treatment formulations, specialty formulation for breweries as well as dairies.
(b) Textile specialty chemicals.
They provide specialty chemicals for the entire value-chain of the textile industry starting from fiber, yarn to fabric, wet processing, and garment processing. As on January 31, 2020, manufactures and sales approximately 1,524 products for its customers in this product category.
(c) Animal health and nutrition products.
They currently supply poultry feed supplements and additives, pet grooming, and pet treat including for weaning, infants, and adult pets. They currently manufacture over 100 products for its customers in this category. They forayed into the pet grooming sub-category pursuant to its acquisition of the ‘Lozalo’ brand in Fiscal 2019. As on January 31, 2020, they have a range of 1,960 different products sold across the three product categories.
Countries of Operation
It operates operation in India as well as in 17 foreign countries including Vietnam, Bangladesh, and Mauritius.
Revenue contribution from different business:
(a) Home, Personal care, and Performance chemicals = 37.81%
(b) Textile specialty chemicals = 52.18%
(c) Animal health and nutrition products = 10%
Manufacturing units and R&D Units:
They manufacture the majority of the products in-house from its manufacturing facility at Silvassa in the Union Territory of Dadra & Nagar Haveli. The Silvassa Manufacturing Facility has an installed capacity of 100,000 MTPA with an additional capacity of 20,000 MTPA in the process of being installed by March 2021. The Silvassa Manufacturing Facility has flexible manufacturing capabilities for powders, granules, and liquids. Further, they can interchange capacities across home, personal care, and performance chemicals; textile specialty chemicals; and animal health and nutrition products categories, which ensures that they can manufacture any of these products at any point in time depending on the specific requirements of customers.
They have two R&D facilities – one within the Silvassa Manufacturing Facility and another one in Mumbai.
Objects of the Rossari Biotech Limited IPO:
Rossari Biotech Limited IPO Details:
|Open Date:||Jul 13 2020|
|Close Date:||Jul 15 2020|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Building|
|Issue Size:||496 Cr.|
|Lot Size:||35 Shares|
|Issue Price:||₹ 423-425 Per Equity Share|
|Listing Date:||Jul 23 2020|
Promoters And Management:
Financials of Rossari Biotech Limited IPO:
|Year||Long-Term Debt||Short-Term Debt||Total Debt||NW||Debt/NW||RONW|
|Year||Current Assets||Current Liabilities||Current Ratio||Receivable Days||CFO||Capital Exp.||FCF|
|Name of the company||5-year Revenue Growth||5 year PAT Growth||EBITDA Margin (FY20)||ROE (FY20)||P/E|