Laxmi Organic Industries Ltd

Laxmi Organic Industries Ltd - IPO

Issue opens 15th March 2021

Incorporated in 1989, Laxmi Organic Industries Ltd is a specialty chemical manufacturer that operates in 2 business segments; Acetyl Intermediates (AI) and Specialty Intermediates (SI). It is the leading manufacturer of ethyl acetate with over 30% market share in the Indian ethyl acetate market and the only manufacturer of diketene derivatives in India.

Its AI segment includes ethyl acetate, acetaldehyde, fuel-grade ethanol, and other proprietary solvents whereas the SI segment includes ketene, diketene derivatives namely esters, acetic anhydride, arylides, amides, and other chemicals. Its products are being used in various industries like pharmaceuticals, agrochemicals, inks & coatings, dyes & pigments, paints, printing & packaging, etc. Alembic Pharmaceuticals Limited, Laurus Labs Limited, Granules India Limited, Hetero Labs Limited, Heubach Colour Private Limited, Hubergroup India Private Limited, Huhtamaki India Limited, Macleods Pharmaceuticals Private Limited, Suven Pharmaceuticals Limited, Colourtex Industries Private Limited, and UPL Limited are some of its customers.

The company has a global footprint with customers in 30 countries including but not restricted to China, Russia, Singapore, UAE, UK, USA, Netherland, etc. Currently, it has 2 manufacturing facilities in Mahad, Maharashtra for the manufacturing of AI and SI products. It is also proposing to set-up a new manufacturing facility at Lote Parshuram, Maharashtra to manufacture four specialty chemicals.

Competitive Strengths:

Leading manufacturer of ethyl acetate in India.
Largest manufacturer of diketene derivative products.
Diversified customer base across industries.
Strategically located manufacturing facilities.
Consistent financial performance.

Company Promoters:

Yellow Stone Trust and Ravi Goenka are the company promoters.

Company Financials

Particulars	For the year/period ended (Rs in Million)
Summary of financial Information (Restated)	30-Sept- 20	31-Mar-20	31-Mar-19	31-Mar- 18
Total Assets	10,371.32	10,706.33	10,144.88	8,947.34
Total Revenue	8,143.55	15,386.21	15,743.23	13,960.75
Profit After Tax	454.84	702.12	723.91	756.95

Objects of the Issue:

Investment in subsidiary firm, Yellowstone Fine Chemicals Private Limited (YFCPL) to partly finance the capex to establish a new manufacturing facility.
To invest in YFCPL for financing working capital requirements.
To finance the capex for expansion of SI manufacturing facility.
To finance business working capital requirements.
To purchase plant and machinery for infrastructure development at SI facility.
To make prepayment or repayment of borrowings availed by the company and subsidiary, Viva Lifesciences Pvt Ltd (VLPL).
To meet general corporate purposes.

(Read Detailed Report)