About the Company:
Rossari Biotech is one of the leading specialty chemicals manufacturing companies in India based on sales for Fiscal 2019 providing customized solutions to specific industrial and production requirements of our customers primarily in the FMCG, apparel, poultry and animal feed industries.
Company has a diversified product portfolio comprising home, personal care and performance chemicals, textile specialty chemicals and animal health and nutrition products.
Company operates in India as well as in 17 foreign countries including Vietnam, Bangladesh and Mauritius.
Company is the largest manufacturer of textile specialty chemicals in India providing textile specialty chemicals in a sustainable, eco-friendly yet competitive manner.
Company is a pioneering force in the Indian specialty chemicals market and ‘Rossari’ is considered a well-known brand in this market
Company’s business is organized in three main product categories – (i) home, personal care and performance chemicals; (ii) textile specialty chemicals; and (iii) animal health and nutrition products.
As on May 31, 2020, Company had a range of 2,030 different products sold across the three product categories
Company’s business is organized in three main product categories:
- Home, personal care and performance chemicals
- Textile specialty chemicals
- Animal health and nutrition products.
Home, personal care and performance chemicals:
Rossari Biotech is a leading manufacturer of acrylic polymers in India and currently manufacture over 300 products for our customers in the soaps and detergent, paints, inks and coatings, ceramics and tiles, water treatment chemicals and pulp and paper industries.
Company also manufactures institutional cleaning chemical formulations for hospitality, facility management, airports, corporates, food service, commercial laundry, malls, multiplexes, educational sector, places of worship etc.
Company’s revenue from sale of home, personal care and performance products constituted 46.81% of total revenue in Fiscal 2020
Textile specialty chemicals:
Rossari Biotech provides specialty chemicals for the entire value-chain of the textile industry starting from fiber, yarn to fabric, wet processing and garment processing and manufactures and sales approximately 1,543 products for our customers in this product category.
Company has differentiated the product portfolio by focusing on providing diversified and value added speciality chemicals to enhance hydrophilic properties, anti- microbial properties, flame retardant properties, fragrance, water repellents and UV absorbing properties of the textiles.
Revenue from sale of textile chemicals constituted 43.71% of their total revenue in Fiscal 2020.
Animal health and nutrition:
Company has also diversified into animal health and nutrition and currently supply poultry feed supplements and additives, pet grooming and pet treats including for weaning, infants and adult pets and currently manufacture over 100 products for our customers in this category.
Company has forayed into pet grooming sub-category pursuant to our acquisition of the ‘Lozalo’ brand and related trademarks, intellectual property and employees in Fiscal 2019.
While almost all the products under the animal health and nutrition category are manufactured in-house, the pet treats are manufactured through job-work contracts.
Company’s Distribution Network:
Rossari Biotech has a wide network of distributors through which we sell our products. Company’s pan-India distribution network has over 204 distributors as on May 31, 2020.
Company also have 29 distributors spread in over 17 countries.
Company has also set up international offices in Ho Chi Minh City, Vietnam and Dhaka, Bangladesh as these two are primary overseas markets for our textile specialty chemical products.
In Process of Expanding the Product Portfolio:
Company in advanced stages of expanding our home, personal care and performance product portfolio to water treatment formulations, specialty formulation for breweries as well as dairies. We are also planning to introduce certain new products in the personal care and cosmetics segments.
- RSPL Limited (Ghadi detergent)
- IFB Industries Limited
- Hindustan Unilever Limited
- Arvind Limited
- Shahi Exports Private Limited
Online Sales via Online Platform like Amazon:
While Rossari Biotech primarily operate in a business-to-business model for our home, personal care and performance products, we also sell certain of our end formulations to direct consumers under private label or in partnership with digital market platforms such as Amazon.
Company’s Manufacturing Facilities:
Rossari Biotech manufactures majority of the products in-house from their manufacturing facility at Silvassa in the Union Territory of Dadra & Nagar Haveli.
The Silvassa Manufacturing Facility, located on 8.6 acres of land, has an installed capacity of 120,000 MTPA. with an additional capacity of 20,000 MTPA in the process of being installed by March 2021.
In Process of Expanding the Manufacturing Facilities:
Company is currently setting up another manufacturing facility at Dahej in Gujarat with a proposed installed capacity of 132,500 MTPA which will enjoy proximity to the deep-water, multi-cargo port of Dahej. The proposed state-of-the-art facility will be well-equipped with advanced technologies and will be commissioned in Fiscal 2021.
Company’s Capacity Utilization:
The annual capacity utilization of our Silvassa Manufacturing Facility has moved from 74.19% in Fiscal 2018 to 93.94% in Fiscal 2019 and to 82.46% in Fiscal 2020.
Watch the Video For More Information:
- Mr. Edward Menezes (Designation: Executive Chairman)
- Mr. Sunil Chari (Designation: Managing Director)
Objectives of the Issue:
- Repayment/prepayment of certain indebtedness availed by the Company (including accrued interest).
- Funding working capital requirements.
- General corporate purposes.
Positives for the Company:
Diversified Product Portfolio.
- Company caters to various customers’ needs across FMCG, apparel, and poultry and animal feed industries through diversified product portfolio comprising home, personal
care and performance chemicals; textile specialty chemicals; and animal health and nutrition products.
- For example, in the home, personal care and performance chemicals category, company currently manufacture and sell over 366 products for their customers in the soaps
and detergent, paints, inks and coatings, ceramics and tiles, water treatment chemicals and pulp and paper industries.
- As on May 31, 2020, Company manufactures and sells approximately 1,543 products in the textile specialty chemical sector.
Largest textile specialty chemical manufacturer in India.
- Company is the largest manufacturer of textile specialty chemicals in India as on September 30, 2019.
- Company provides specialty chemicals for the entire value-chain of the textile industry starting from products for yarn production, production of man-made fibre, thread production, digital printing, fabric processing, dyeing auxiliaries, finishing range, garment finishing to products for printing.
Continous increase in Capacity Utilization Levels.
- The annual capacity utilization of our Silvassa Manufacturing Facility has moved from 74.19% in Fiscal 2018 to 93.94% in Fiscal 2019 and to 82.46% in Fiscal 2020.
- Company is currently setting up another manufacturing facility at Dahej in Gujarat with a proposed installed capacity of 132,500 MTPA to expand the manufacturing capacity in line with our growth in overall business.
Strong Distribution Network:
- In the textile specialty chemicals product category, Company sells the products through a network of 109 distributors spread over 13 states in India and through 19 overseas distributors spread over 16 countries including in the USA, Portugal, the UAE, Vietnam, Sri Lanka, South Korea, Mexico and Turkey.
- Company has also set up international offices in Ho Chi Minh City, Vietnam and Dhaka, Bangladesh as these two are primary overseas markets for textile chemical products.
Financials of the Company: (Consolidated)
|(in Crores)||FY 17||FY 18||FY 19||FY 20|
Valuation of Peer Group Companies:
|Company Name||Face Value||EPS||PE Ratio||RoNW (%)||NAV|
|Rossari Biotech Ltd||2||13.23||32.12||31.79%||56.48|
|Aarti Industries Ltd||5||60.39||25.90||18.11%||313.23|
|Vinati Organics Ltd||2||54.97||35.48||26.87%||204.56|
|Galaxy Surfactants Ltd||10||53.87||25.76||21.78%||247.28|
|Fine Organics Industries Ltd||5||44.44||40.44||34.44%||129.02|
|Issue Opens on||13th July 2020|
|Issue Closes on:.||15th July 2020|
|Issue Price||Rs.423 – 425|
|Minimum Lot||35 Shares|
|Issue Size||Rs. 496.25 cr ($66 million)|
|Market Cap||Rs. 2207 cr ($294 million)|
|Listing at||NSE & BSE|
|OFS (Offer for Sale)||1,05,00,000|
|Total Equity Shares Offered (Fresh + OFS)||1,16,76,470|
|Equity Shares Prior to the Issue||5,07,52,920|
|Equity Shares after the Issue||5,19,29,390|
|Finalization of Basis of Allotment||On or Before 20th July 2020|
|Initiation of Refunds||On or Before 21st July 2020|
|Credit of Equity Shares:||On or Before 22nd July 2020|
|Listing Date:||On or Before 23rd July 2020|
Subscription Details: (Will be Updated)
|(Subscription-Category-Wise (no. of times) Till time : 06:00 PM)||Shares Offered||Day-1||Day-2||Day-3|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|Company Contact Info:|
|Rossari Biotech Ltd
201 A – B, 2nd Floor, Akruti Corporate Park
L.B.S. Marg, Next to GE Gardens
Mumbai 400 079, India
Tel: (+91 22) 6123 3800
|IPO Registrar Info:|
|Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai 400 083
Tel: (+91 22) 4918 6200