Rossari Biotech Limited IPO

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(i) They are one of the leading specialty chemical manufacturing companies in India based on sales for Fiscal 2019.

(ii) Industry they serve:

They provide customized solutions to specific industrial and production requirements of its customers primarily in the FMCG, apparel, poultry, and Animal feed industries.

(iii) Product Profile:

The business is organized in 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.

(ii) It operates operation in India as well as in 17 foreign countries including Vietnam, Bangladesh, and Mauritius.

(iv) Revenue contribution from different business:

Business Verticals Revenue contribution( 2018-19)
Home, Personal care, and Performance chemicals. 37.81%
Textile specialty chemicals. 52.18%
Animal health and nutrition products. 10%

(v) 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.

(vi) Management of the company

The Promoters, Mr. Edward Menezes, and Mr. Sunil Chari commenced the specialty chemicals business in 2003, as a partnership firm in the name of ‘Rossari Labtech’ which was subsequently changed to ‘Rossari Biotech’ in 2009 as Company.

The promoters are technocrats cumulatively having over 45 years of experience in the specialty chemicals industry.

Objects of the Rossari Biotech Limited IPO:

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Rossari Biotech Limited IPO Details:

Face Value: ₹ 10 Per Equity Share
Listing At: NSE,BSE

Promoters And Management:

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Financials of Rossari Biotech Limited IPO:

( Figures in Lakhs ) A. Revenue and PAT Analysis
Year Revenue EBITDA OPM PAT NPM Shares F.V. EPS
2016 17,851.63 1,273.49 7% 341.77 2% 44 10 7.77
2017 23,439.84 2,524.43 11% 1,571.80 7% 44 10 35.72
2018 29,273.04 4,551.97 16% 2,892.41 10% 44 10 65.74
2019 51,715.49 7,990.62 15% 4,546.13 9% 44 10 103.32
CAGR 43% 84% 137%
B. Debt and Net-Worth Analysis
Year Long-Term Debt Short-Term Debt Total Debt NW Debt/NW RONW
2016 652.47 1,544.14 2,196.61 4,525.97 0.49 8%
2017 242.63 1,953.74 2,196.37 6,058.88 0.36 26%
2018 128.72 1,962.60 2,091.32 8,951.28 0.23 32%
2019 67.28 512.63 579.91 12,448.03 0.05 37%
C) Cash-Flow Analysis
Year Current Assets Current Liabilities Current Ratio Receivable Days CFO Capital Exp. FCF
2016 5,923.14 5,203.12 1.14 59 2,323.91 465.25 1,858.66
2017 7,556.18 5,875.96 1.29 104 771.98 554.64 217.34
2018 10,027.34 6,609.66 1.52 75 2,180.47 1,408.35 772.12
2019 16,013.07 12,091.34 1.32 61 7,290.85 4,394.68 2,896.17
 

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