Sigachi Industries Ltd

About the Company:

Sigachi Industries is engaged in manufacturing microcrystalline cellulose (“MCC”) which is widely used as an excipient for finished dosages in the pharmaceutical industry.

Company is one of the leading manufacturers of MCC in India and one the key manufacturing player of MCC in the world.

The inert non-reactive, free flowing and versatile nature of MCC has varied applications in the pharmaceutical, food, nutraceuticals and the cosmetic industries.

Company manufactures MCC of various grades ranging from 15 microns to 250 microns.

Company sells and markets the products under brand names, such as HiCel, AceCel, HiCel MCG, AceFibre, HiCel SMCC, etc.

The major grades of MCC manufactured and marketed by the Company are branded as HiCel and AceCel.




Company’s Products branded as HiCel and AceCel.

These products are distinguished with the help of different drying techniques employed by the Company during the manufacturing process.

HiCel is a spray dried product and is considered premium in quality due to the physical properties of the product such as particle size, density, flow, tableting properties, etc.

AceCel on the other hand is manufactured through bulk drying process.

Company also manufactures various grades of this product in combination with various chemicals like colloidal silicon dioxide, carboxy cellulose sodium, mannitol etc. to cater to the growing market of the co-processed excipients.




Company’s Background:

Company was incorporated as a private limited company in 1989, with the business to manufacture chlorinated paraffin and hydrochloric acid in our manufacturing unit situated at Hyderabad.

In the year 1990, Company diversified its product portfolio to manufacture microcrystalline cellulose (“MCC”).  Company commenced its export operations in the year 1996 by exporting its first order of MCC to Bangkok.

Owing to the consistent efforts of  Company, the sale from export operations constituted 32% of total sales during the financial year ending March 31, 2004.

In the year 2000, with an aim to diversify our business activities, Company started manufacturing premium grade microcrystalline cellulose by successfully commissioning a spray drier and a multi-fuel furnace, which in turn also increased company’s manufacturing capacity from 720 metric tonnes per annum to 1,080 metric tonnes per annum.

Presently, company manufactures 59 different grades of MCC at our manufacturing units, situated at Hyderabad and Gujarat with an aggregate installed capacity of 11,880 MTPY.

With over 30 years of continuous growth, three multi-locational manufacturing facilities and consistent focus on delivering premium quality product, Company is one of the leading manufacturers of MCC in India.


Break up of the domestic and export sales of products.


Company’s Manufacturing facilities:

Company operates three manufacturing units namely, Unit I situated at Hyderabad and two manufacturing units, Unit II and Unit III are situated at Jhagadia and Dahej, respectively located in Gujarat.

Unit I manufactures both HiCel and AceCel and caters to the domestic and international customers such as end users, merchants, distributors and exporters.

Unit II manufactures AceCel and supplements the sale in the domestic market.

Unit III is situated at Special Economic Zone (“SEZ”) at Dahej and is engaged in the manufacture of HiCel and special grades which is exported to overseas customers and distributors.

Company foresees an increase in demand of MCC and to the tap the growing market and intends to utilize the Net Proceeds of this Issue to enhance the production capacity of MCC by increasing the existing capacity of our Unit II and Unit III and manufacturing of CCS in the Proposed Unit at Kurnool.



Capacity Installed and Capacity Utilization. 


Increasing the manufacturing capacity to focus on the growing demand of company’s core products.

Company has taken a strategic decision to expand the manufacturing units, this will increase company’s ability to cater to the expected increase in demand of the products.

Company propose to utilize the Net proceeds of this Issue to increase the manufacturing capacity at Jhagadia and Dahej facility by an additional 3,600 MTPA and 3,741 MTPA respectively, to maximize the capacity utilization of the manufacturing unit as well as for setting up of the Proposed Unit.

Company’s Unit II and Unit III are spread over an area of approximately 1.44 acres and 2.67 acres, respectively.



Procurement of Raw Material.

The major raw material used during the manufacture of MCC is purified dissolving wood pulp bales.

These are imported from Canada, South Africa, Thailand, Indonesia and America from various suppliers. The chemical and physical properties of the pulp determine the final quality of the finished products.

The wood pulp bales are imported based on the quality and the price at which they are available with the suppliers.



Breakup of Revenue from different industries.


Agreements with Gujarat Alkalies and Chemicals Limited (“GACL”)

Company has entered into operations and management agreements with Gujarat Alkalies and Chemicals Limited (“GACL”) for operating and managing the manufacturing units owned by GACL and for contract manufacturing of sodium chlorate, stable bleaching powder and poly aluminum chloride in the said units.



Company’s wholly owned subsidiary in US.

Company has already started out on a journey as a manufacturer and supplier of company’s existing products in the international market, by incorporating a wholly owned subsidiary, Sigachi US Inc. in Virginia, USA which facilitates supply of products to customers in the international markets.

The quality of products and compliance to the customer specifications and international standards, is company’s biggest marketing technique.



Competition in the Business:

Company faces competition from organized as well as unorganized players in the domestic market as well as in the international market.

There are number of competitors who manufacture products, which are similar to Sigachi Industries. Even with a diversified product portfolio, quality approach, innovative R&D facility and modern technology company may have to face competitive pressures.



Key Market players in MCC Market.



Management Team:

  1. Mr. Swami Das Nigam (Designation: Chairman and Non-Executive Director)
  2. Mr. Amit Raj Sinha (Designation: Managing Director and Chief Executive Officer)





Objectives of the Issue:

Fresh Issue: (Rs. 125 cr)

Funding capital expenditure:

  • for expansion of production capacity for microcrystalline cellulose (“MCC”) at Dahej, Gujarat.
  • for expansion of production capacity for microcrystalline cellulose (“MCC”) at Jhagadia, Gujarat.
  • to manufacture Croscarmellose Sodium (“CCS”), a modified cellulose used as excipient at Kurnool, Andhra Pradesh.
  • General Corporate Purposes.



Fund Utilization:

Particulars Amount (Rs. in Crores)
Expansion of production capacity for MCC at Dahej, Gujarat 28.15
Expansion of production capacity for MCC at Jhagadia, Gujarat 29.24
Funding capital expenditure to manufacture CCS at the Proposed Unit 32.29




Peer Group Comparison:

Company is engaged in manufacturing of microcrystalline cellulose (“MCC”) which is widely used as an excipient for finished dosages in the pharmaceutical industry.

We believe there are no listed entities similar to Sigachi Industries Ltd line of business and comparable to company’s scale of operations, hence comparison is not possible.





Positives for the Company:

One of the leading manufacturers of MCC in India with over 30 years’ experience.

  • Company has a legacy of more than three decades in the cellulose-based excipient industry and manufactures MCC of various grades and market them under various brand names, such as HiCel, AceCel, HiCel MCG, AceFibre, HiCel SMCC, etc.
  • Company believes that consumers have a strong loyalty to the brands, which has enabled company’s



Pan India and International market presence.

  • With premium quality products, company been able to create a long-standing market presence in India and internationally.
  • Company’s foreign wholly owned subsidiary namely Sigachi U.S. Inc. has been incorporated in Virginia, USA which helps company cater to the needs and requirements of international customers.
  • Company caters to various end users, merchants, distributors and exporters. Company exports products to forty-one (41) countries including Australia, USA, South America, U.K., Poland, Italy, Denmark, China, Colombia, Bangladesh, to name a few.



Comprehensive product portfolio enables company to serve diverse end-use applications.

  • Owing to the inert non-reactive, free flowing and versatile nature of MCC, company is in a position to customize the usage and application of products to various industries including but not limited to pharmaceutical, food, nutraceuticals and cosmetics.
  • Company manufactures MCC in various grades ranging from 15 microns to 250 microns.
  • Company has an in-house R&D Division, which is responsible for expanding the product portfolio and its application across industries by regularly interacting with customers to understand demand for new products.



Presence across diverse industry verticals with long standing relationship with customers.

  • Company has developed long-term relationships with customers in various sectors including pharmaceutical, nutraceuticals, food, nutraceuticals and cosmetics.
  • Company’s business with some of the more recent customers has increased, reflecting company’s ability to develop and strengthen relationships with customers.



Diversifying and increasing penetration in markets.

  • Currently, company manufactures MCC of 59 different grades ranging from 15 microns to 250 microns.Additionally, the company intends to manufacture higher grades of MCC at the Proposed Unit.
  • The domestic market offers various opportunities in terms of sub-geographic penetration and product/ market diversification.
  • Company intends to increase the market share by exploring untapped markets by offering innovative value-added products, as part of company’s strategy to widen growth prospects.
  • Company shall also continue to explore opportunities in different regions and countries abroad to enhance our geographical reach.



Increasing Global presence.

  • Company’s income from exports grew at a CAGR of 31.28% from Rs.77.11 crores in Fiscal 2019 to Rs.132.89 crores in Fiscal 2021.
  • Company currently export the products to forty-one (41) countries including Australia, USA, South America, U.K., Poland, Italy, Denmark, China, Colombia, Bangladesh, etc. and plan to expand the export operations globally.



Financials of the Company:

(in Crores) FY 19 FY 20 FY 21 30th June 21
Revenue 132.87 143.9 196.01 55.12
Net Profit 18.8 20.10 30.38 9.03


IPO Details:

Details Info
Issue Opens on 1st November 2021
Issue Closes on:. 3rd November 2021
Issue Price Rs.161 – 163
Face Value Rs.10
Retail Category Allocation 35%
Minimum Lot 90 Shares
Minimum Investment Rs.14,670
Issue Constitutes 25.03%
Issue Size Rs.125 cr ($16 million)
Market Cap Rs.501 cr ($67 million)
Listing at NSE & BSE
Equity Shares Offered (Fresh) 76,95,000
Equity Shares Prior to the issue 2,30,47,500
Equity Shares after the issue 3,07,42,500

Also Read : List of Upcoming IPO’s in India.


Important Dates:

Finalization of Basis of Allotment on or Before 10th November 2021
Initiation of Refunds on or Before 11th November 2021
Credit of Equity Shares: on or Before 12th November 2021
Listing Date: on or Before 15th November 2021



Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 06:00 PM) Shares Offered Day-1 Day-2 Day-3
QIB 15,39,000 0.57 0.82 86.51
NII 11,54,250 4.46 16.99 172.43
Retail 26,93,250 16.76 38.49 80.49
Employee ——– —– —- —-
TOTAL 53,86,500 9.50 23.12 101.91

Note: Retail Subscription on the basis of Applications: 69.26x



IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
13.13 12.41 32.12% 40.87


Check IPO Allotment Status:


BSE IPO Website:


Company Contact Info:
Sigachi Industries Ltd
229/1 & 90, Kalyan’s Tulsiram Chambers,
Madinaguda, Hyderabad- 500 049,
Telangana, India;
Telephone: +91 040 4011 4874/75/76


IPO Registrar Info:
1st floor, Bharat Tin Works Building,
Opp. Vasant Oasis, Makwana Road,
Marol, Andheri (East),
Mumbai- 400 059, Maharashtra, India.
Telephone: +91 22 6263 8200
Facsimile: +91 22 6263 8299


Lead Manager to the Issue:
305, A Wing, Dynasty Business Park,
Andheri Kurla Road, Andheri East,
Mumbai- 400059.
Telephone: +91 9820057533