About the Company:
Unilex Colours and Chemicals Ltd is engaged in the business of manufacturing of Pigment, and the trading of chemicals and food colours. The pigments manufactured by us find diverse applications across various industries such as plastic, rubber, textiles, paper, printing inks, paintsand coating.
Within Pigments, Company specializes in Pigment Blue 15:3 and 15:4, with an annual production capacity of 1878 mtpa. Company’s products are marketed under the registered brand name “Unilex.”
Company caters to both domestic and international markets, providing a wide range of pigment solutions for various industries.
Company’s products undergo through examination, testing and evaluation to ensure compliance with specified requirements.
Company’s manufacturing facility holds ISO 9001:2015 certification for quality management in the manufacturing of pigments, food dyes, and drug intermediates.
Company has been recognized as a Three Star Export House by the Ministry of Commerce, Government of India. To ensure global product compliance (Europe) AB Sweden, Company has received a Certificate of REACH Registration, issued under the REACH Regulation (Registration, Evaluation, Authorisation, and Restriction of Chemicals), a regulation of the European Union (EU).
Company’s Trading Business:
Company trades in various pigments and food colours such as Pigment Green 7, Middle Chrome, Lemon Chrome, Pigment Violet 3, 23, and 27, Ultramarine Blue, and other Azo pigments like Red 57:1, 53:1, Orange 5, 13, and Yellow 12, 13, 14 as well as food colours such as Tartrazine, Sunset Yellow, Allura Red, Ponceau 4R, Carmoisine, and Brilliant Blue etc., which are sourced from third-party manufacturers to meet our clients’ specific needs and standards.
While company produces and sells a comprehensive range of pigments, we have noticed that some of our customers have needs that extend beyond our in-house offerings. To address these needs and ensure complete customer satisfaction, we source a wide range of pigments from other manufacturers.
This approach allows us to provide a broad spectrum of high-quality pigments, ensuring that we can fully cater to the unique and varied demands of our clientele.
Company’s Revenue from Manufacturing and Trading activities: (in Lakhs)
Company’s Installed capacity, Actual Production and Capacity Utilization:
Company’s Exports:
Company is exporting products to countries including Vietnam, Brazil, Mexico, Nigeria, Russia, Turkey, Netherlands, Poland, China, Spain, Malaysia, Thailand, United Arab Emirates and Uzbekistan.
Company markets the products through direct marketing, which allow us to connect with potential customers on a personal level and tailor our messaging to their specific needs. Further, company also participates in exhibitions and conferences, providing us to showcase our products.
Awards Recieved by the Company:
On April 15, 2023, Company received a Certificate of Merit from Basic Chemicals, Cosmetics & Dyes Export Promotion Council (CHEMEXCIL), recognizing company’s outstanding performance in the Basic Chemical, Organic & Inorganic Chemical, including Agro Chemicals panel.
Summary of Revenue from Company’s Top-five products: (in Lakhs)
Company’s Geographical wise revenue: (in Lakhs)
Company’s Revenue from various Industry Segments: (in lakhs)
Competitors in the Business:
Some of the listed companies that are in the business similar to the company are Kesar Petroproducts Limited and Sudarshan Chemical Industries Limited.
Management Team:
- Mr. Purushottam Brijlal Sharma (Designation: Chairman & Wholetime Director)
- Mr. Aditya Sharma (Designation: Managing Director)
Objectives of the Issue:
Fresh Issue: (Rs.31.32 cr)
- To Meet Working Capital Requirements;
- Repayment of a portion of certain borrowing availed by our Company;
- General Corporate Purpose.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| To Meet Working Capital Requirements | 15 cr |
| Repayment of a portion of certain borrowing availed by our Company | 10 cr |
Positives for the Company:
Long Standing Relationships with Diversified customers across geographies.
- Company has developed long-term relationships with various corporations that has helped us expand our product offerings, processes and geographic reach.
- Company’s customers are typically engaged in various industries, including in Plastics, Rubber, Textiles, Paper, Printing Inks, Paints & Coatings and in Other Industrial Applications and are spread across various geographies, which helps us mitigate risks resulting from customer, industry and geographic concentration.
- Delivery of quality products ensures strong customer engagement. Potential customers invest considerable time approving us as suppliers to ensure we meet their quality controls and requirements across various jurisdictions and regulators. The resources involved in engaging new suppliers make customers more inclined to maintain their partnership with us.
Company offers a diversified range of products.
- Company’s range of products combines in-house manufacturing capabilities and sourced items from the market. This dual approach allows company to provide a comprehensive solution that meets varied customer needs and preferences.
- By manufacturing certain products inhouse such as Pigment Blue 15:3 and 15:4, company maintains control over quality and production timelines, ensuring we consistently deliver high standards and cater to specific requirements of our clientele.
- Simultaneously, sourcing products from the market allows company to expand our product range swiftly, leveraging external expertise and specialized manufacturing capabilities that complement our own. This strategy enables company to offer a wider array of choices, covering different styles, functionalities, and price points.
- Company’s ability to blend in-house manufacturing with sourced products enhances our product diversity and strengthens our competitive edge by ensuring flexibility, innovation, and responsiveness to market demands. This strategic approach positions us well to meet the evolving needs of our customers.
Company Plans to Deepen and Expand the Geographical presence.
- Company intends to cater to the increasing demand of our existing customers and also to develop new customer base by supplying our products worldwide.
- Company proposes to enter into new geographies and expand our marketing and sales team which can focus on different regions and also maintain existing customer relationship.
- In the last 3 financial years, we have been successful in exporting our products to many clients across the globe such as Vietnam, Brazil, Mexico, Nigeria, Russia, Turkey, Netherlands, Poland, China, Spain, Malaysia, Thailand, United Arab Emirates and Uzbekistan.
- Company believes that there are some untapped markets with huge demand and business potential that are yet to be explored by us such as United States of America, Mexico, Peru, Columbia, Japan, Argentina and Canada.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 |
|---|---|---|---|
| Revenue | 151.56 | 144.41 | 149.32 |
| Net Profit | 4.71 | 4.97 | 6.16 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Unilex Colours and Chemicals Ltd |
10 | 6.16 | 14.12 | 16.73% | 36.80 |
| Kesar Petroproducts Ltd | 1 | 0.51 | 36.51 | 3.99% | 12.87 |
| Sudarshan Chemical Industries Ltd |
2 | 48.40 | 18.62 | 30.29% | 159.84 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 25th September 2024 |
| Issue Closes on | 27th September 2024 |
| Issue Price | Rs.82 -87 |
| Face Value | Rs.10 |
| Minimum Lot | 1600 Shares |
| Minimum Investment | Rs.1,39,200 |
| Issue Constitutes | 26.43 % |
| Issue Size | Rs.31.32 cr |
| Market Cap | Rs.118.46 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 36,00,000 (Rs.31.32 cr) |
| Equity Shares Prior to the Issue | 1,00,17,000 |
| Equity Shares after the Issue | 1,36,17,000 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 6.16 | 14.12 | 16.73% | 36.80 |
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| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Unilex Colours and Chemicals Ltd specializes in manufacturing pigments and trading chemicals and food colors. The company’s pigments are used across a variety of industries such as plastics, rubber, textiles, paper, printing inks, paints, and coatings. Within its pigment portfolio, Unilex focuses on Pigment Blue 15:3 and 15:4, with an annual production capacity of 1,878 metric tons. Their products are marketed under the registered brand name “Unilex.”
Unilex caters to both domestic and international markets, offering tailored pigment solutions. The company’s manufacturing process is certified with ISO 9001:2015 for quality management, ensuring their products meet stringent industry standards. As a Three Star Export House, recognized by the Ministry of Commerce, Government of India, Unilex maintains strong relationships with diverse clients worldwide. With a focus on expanding its global footprint, the company plans to strengthen its presence in new geographies. Unilex’s diversified product portfolio, alongside its reputation for quality, positions it as a solid contender for long-term investors looking to participate in its IPO. |
Important Dates:
| Finalization of Basis of Allotment | on or Before 30th September 2024 |
| Initiation of Refunds | on or Before 1st October 2024 |
| Credit of Equity Shares: | on or Before 1st October 2024 |
| Listing Date: | on or Before 3rd October 2024 |
| Company Contact Info: |
|---|
| Unilex Colours and Chemicals Ltd 106-107, Advent Atria, Chincholi Bunder Road, Malad (W) Mumbai-400064 Maharashtra. Tel No: +91-22-28886235 E-mail: cs@unilexcolours.in Website: https://unilexcolours.in/ |
| Registrar to the Issue: |
|---|
| LINK INTIME INDIA PRIVATE LIMITED Address: C-101, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai-400083 Maharashtra, India Tel No: +91-8108114949 Email: unilex.smeipo@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPO_Allotment_Check |
