Buy clean science for longerterm
ABOUT
Incorporated in 2003, Clean Science and Technology Ltd is one of the leading chemical manufacturers globally. It manufactures functionally critical specialty chemicals such as Performance Chemicals (MEHQ, BHA, and AP), Pharmaceutical Intermediates (Guaiacol and DCC), and FMCG Chemicals (4-MAP and Anisole).
KEY POINTS
Product Segments & Revenue split FY22
Performance chemicals (70%): 4 key products are MEHQ, BHA, AP and TBHQ.
Geography-wise Revenue Classification
Leading Manufacturer of Green Chemistry
Green chemistry is an emerging focus among manufacturing industries that minimizes pollution at a molecular level and Clean science works on developing eco-friendly and sustainable manufacturing processes of specialty and fine chemicals and is one of the global leaders in its key products including monomethyl ether of hydroquinone, butylated hydroxyanisole, anisole, and 4-MAP, besides in other key products including guaiacol and DCC
Product Application
Company's products include Anisole, MEHQ, Guaiacol, MAP, BHA, Ascorbyl Palmitate. These are used as key starting level materials, as inhibitors or as additives by diverse Industries such as Textiles, FMCG, Agriculture, Personal Care, and many others. Its Key customers include Bayer AG, SRF Ltd, Gennex Laboratories, Nutriad International NV and Vinati Organics.
**International Footprints **
The company supplies its products to manufacturers and distributors in India as well as overseas markets i.e. China, Europe, USA, Korea, Taiwan, and Japan. Bayer AG, Genex Laboratories Limited, Nutriad International NV, SRF Limited, Vinati Organics are a few of its customers. In FY 22, it generated 70 % of revenues through export outside India
Manufacturing Facilities
It has 3 certified production facilities in India strategically located at Kurkumbh (Maharashtra), in close proximity to the JNPT port from where it exports the majority of products. Each facility has an on-site R&D unit, quality control department, warehouse, and effluent treatment system.
CAPEX
In FY22, co. incurred ₹140 Crores, capex towards unit three primarily. All capex was funded from internal accruals. Majority Capex was undertaken at unit three where they commissioned two plants, PBQ and TBHQ, which are newer products. Doubled anisole capacity and increased BHA capacity by 50%. Increased capacities of MEHQ and Guaiacol by 50% and the plant was commissioned in April 2022. They are also in the process of doubling PBQ capacity,completion expected in the second half FY23.
R&D Breakthrough in FY21
The Co. successfully developed key products in HALS series using in-house R&D capabilities and has become the first Indian company to develop HALS series which find application in diverse end industries including polymerization inhibitor, water treatment, paint industry, coatings industry, etc. The company plans to commercialize this product by H2 FY2023.
Revenue Concentration
In FY22, revenue from a single customer accounted for 12.5% of the total revenues.
IPO Details
The Company got listed on Jul 19, 2021, the IPO size of the company was 1546 Cr of which the entire issue was an Offer for sale.
Incorporation of subsidiary
During FY22, co. incorporated a new WOS to manufacture speciality chemicals including the HALS series under the name “Clean Fino-Chem Limited” with an initial Capital of 10 lakhs Subsequently, the Company made additional equity investments of 55 crores in CFCL.
The greenfield Capex on an acquired 34-acre land parcel will be undertaken through this subsidiary.
ABOUT
Incorporated in 2003, Clean Science and Technology Ltd is one of the leading chemical manufacturers globally. It manufactures functionally critical specialty chemicals such as Performance Chemicals (MEHQ, BHA, and AP), Pharmaceutical Intermediates (Guaiacol and DCC), and FMCG Chemicals (4-MAP and Anisole).
KEY POINTS
Product Segments & Revenue split FY22
Performance chemicals (70%): 4 key products are MEHQ, BHA, AP and TBHQ.
Geography-wise Revenue Classification
Leading Manufacturer of Green Chemistry
Green chemistry is an emerging focus among manufacturing industries that minimizes pollution at a molecular level and Clean science works on developing eco-friendly and sustainable manufacturing processes of specialty and fine chemicals and is one of the global leaders in its key products including monomethyl ether of hydroquinone, butylated hydroxyanisole, anisole, and 4-MAP, besides in other key products including guaiacol and DCC
Product Application
Company's products include Anisole, MEHQ, Guaiacol, MAP, BHA, Ascorbyl Palmitate. These are used as key starting level materials, as inhibitors or as additives by diverse Industries such as Textiles, FMCG, Agriculture, Personal Care, and many others. Its Key customers include Bayer AG, SRF Ltd, Gennex Laboratories, Nutriad International NV and Vinati Organics.
**International Footprints **
The company supplies its products to manufacturers and distributors in India as well as overseas markets i.e. China, Europe, USA, Korea, Taiwan, and Japan. Bayer AG, Genex Laboratories Limited, Nutriad International NV, SRF Limited, Vinati Organics are a few of its customers. In FY 22, it generated 70 % of revenues through export outside India
Manufacturing Facilities
It has 3 certified production facilities in India strategically located at Kurkumbh (Maharashtra), in close proximity to the JNPT port from where it exports the majority of products. Each facility has an on-site R&D unit, quality control department, warehouse, and effluent treatment system.
CAPEX
In FY22, co. incurred ₹140 Crores, capex towards unit three primarily. All capex was funded from internal accruals. Majority Capex was undertaken at unit three where they commissioned two plants, PBQ and TBHQ, which are newer products. Doubled anisole capacity and increased BHA capacity by 50%. Increased capacities of MEHQ and Guaiacol by 50% and the plant was commissioned in April 2022. They are also in the process of doubling PBQ capacity,completion expected in the second half FY23.
R&D Breakthrough in FY21
The Co. successfully developed key products in HALS series using in-house R&D capabilities and has become the first Indian company to develop HALS series which find application in diverse end industries including polymerization inhibitor, water treatment, paint industry, coatings industry, etc. The company plans to commercialize this product by H2 FY2023.
Revenue Concentration
In FY22, revenue from a single customer accounted for 12.5% of the total revenues.
IPO Details
The Company got listed on Jul 19, 2021, the IPO size of the company was 1546 Cr of which the entire issue was an Offer for sale.
Incorporation of subsidiary
During FY22, co. incorporated a new WOS to manufacture speciality chemicals including the HALS series under the name “Clean Fino-Chem Limited” with an initial Capital of 10 lakhs Subsequently, the Company made additional equity investments of 55 crores in CFCL.
The greenfield Capex on an acquired 34-acre land parcel will be undertaken through this subsidiary.