Table of content
Kronox Lab sciences Introduction
Kronox Lab Sciences Limited is a manufacturer of high-purity specialty fine chemicals based in India. They cater to various industries with their products.
Industry: Manufactures high-purity specialty fine chemicals.
Products: Chemicals used in making pharmaceuticals, scientific research, nutraceuticals, and more
Understanding the Company’s Foundation of Kronox Lab sciences:
History & Milestones:
Kronox Lab Sciences Ltd. is a manufacturer of high-purity specialty fine chemicals founded in 2008. They focus on chemicals used in various industries, including pharmaceuticals, nutraceuticals, food processing, and more.
Here’s a timeline of some key milestones for Kronox Lab Sciences Ltd:
- 2008: The company is incorporated.
- They begin manufacturing high-purity specialty fine chemicals for the pharmaceutical and nutraceutical industries.
- They expand their initial manufacturing unit.
- Kronox Lab Sciences Ltd starts producing chemicals specifically for the solar industry.
- They receive FSSC 22000 certification from ISOQAR, UK for their Unit I . This signifies their adherence to food safety standards.
- Commencement of manufacturing operations at Unit II. This likely signifies an expansion in production capacity.
- Kronox Lab Sciences Ltd gets FSSAI certification, allowing them to manufacture food-grade fine chemicals and ingredients.
Kronox Lab Sciences Ltd has grown its revenue and customer base over the years. As of December 2023, they have over 592 customers, with nearly a quarter being repeat customers. Their products are sold in 20 countries worldwide.
Vision & Strategy of Kronox Lab sciences
- Expand our product portfolio, increasing the supply of our products to our existing customers and tap new customers in existing and new geographies.
- Expand our capacity for existing products and diversifying into new products by setting up a new manufacturing facility
- Explore newer applications for our existing products and developing new products that are in synergy with our current and future operations.
- Focus on import substitution and increasing exports.
- Improve cost management and operational efficiencies.
Directors & Promoters of Kronox Lab sciences
| Name of director | Designation |
| Jogindersingh Jaswal | Chairman and Managing Director |
| Ketan Ramani | Whole-time Director |
| Pritesh Ramani | Whole-time Director |
| Satish Kumar | Independent Director |
| Krutika Negandhi | Independent Director |
| Parth Shah | Independent Director |
- Promoters
- Jogindersingh Jaswal
- Ketan Ramani
- Pritesh Ramani
- Promoter Group
- Dhruvil Ramani
- Pooja Parshva Gandhi
- Rupal Ramani
- Anjukumari Jaswal
- Ankit Jaswal
- Deepali Ramani
Market Landscape & Competitive Edge:
Industry Outlook & Trends
The size of the Indian chemicals industry, excluding pharmaceuticals, in terms of the value of output in the year FY22 was around Rs. 9.10 lakh crores and 8.4% of the value of the output of the manufacturing sector at constant prices as against 7.9% in FY18. The chemical and chemical products except pharmaceuticals has registered a CAGR of 8.8% from FY18 to FY22. Furthermore, as per the Government of India’s Department of Chemicals and Petrochemicals, India ranks 11th in the world exports of chemicals (excluding pharmaceutical products) and 6th in the world imports of chemicals (excluding pharmaceutical products).
Similarly, India’s imports of chemicals (excluding pharmaceutical products) reached Rs. 8.5 lakh crore indicating a 66.01% growth y-o-y in FY22, while the exports reached Rs. 4.9 lakh crore indicating a 30.12% growth y-o-y in FY22.
Major chemicals in India are broadly divided into 5 segments as mentioned below:
- Alkali Chemicals: This segment comprises products like soda ash, caustic soda, and liquid chlorine.
- Inorganic Chemicals: This segment comprises products like carbon black, calcium carbonate, and hydrogen peroxide, among others.
- Organic Chemicals: This segment comprises products like ethyl acetate, chloro methanes, and formaldehyde, among others.
- Pesticides and Insecticides: This segment comprises products like mancozab, 2, 4-D, acephate, and profenofos technical.
- Dyesand Pigments: This segment comprises products like reactive dyes, organic pigment, and dispersed dyes.
<script async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-6076748530055008" crossorigin="anonymous"></script><ins class="adsbygoogle" style="display:block; text-align:center;" data-ad-layout="in-article" data-ad-format="fluid" data-ad-client="ca-pub-6076748530055008" data-ad-slot="2862381062"></ins><script> (adsbygoogle = window.adsbygoogle || []).push({});</script>| Segment | Production volume of each segment in total major chemicals production during H1FY23 (‘000 metric tonnes) | Production volume of each segment in total major chemicals production during FY22(‘000 metric tonnes) | % share of each segment in total major chemicals production during FY22 |
| Alkali chemicals | 4,745 | 9,041 | 70.95 |
| Inorganic chemicals | 529 | 1,052 | 8.26 |
| Organic chemicals | 904 | 1,953 | 15.33 |
| Pesticides | 138 | 299 | 2.35 |
| Dyes & pigments | 171 | 398 | 3.12 |
| Aggregate | 6,487 | 12,743 | 100 |
Country-Wise International Chemical Sales for year 2022E (USD billion)
| Country | Value in USD billion | percentage |
| China | 2,312 | 44.0% |
| Europe | 736 | 14.0% |
| USA | 589 | 11.2% |
| Japan | 221 | 4.2% |
| South Korea | 131 | 2.5% |
| India | 110 | 2.1% |
| Others | 1156 | 22.0% |
Global Citrate Industry
The versatility of citrate and its products makes it a key compound used in a variety of industrial applications. Natural citric acid exists in plants such as lemons, citrus, pineapples, and other fruits, and in animals’ bones, muscles, and blood. Citrates include sodium citrate, potassium citrate, calcium citrate, zinc citrate, etc.
Citrate Industry – Market Size
The global citrate industry’s consumption volumes grew at a Compounded Annual Growth Rate (CAGR) of 5.1% from 478 thousand tonnes in CY2018 to 582 thousand tonnes in CY2022.
| Asia | 23% |
| MEA | 3% |
| Europe | 30% |
| North America | 40% |
| Others | 4% |
Break-Up of Indian Citrate Industry by Grade
The pharma grade citrates have demonstrated a CAGR of 4.3%, reagent grade 4.6%, and nutraceutical grade 5.0% in volume terms, over CY2018-2022. The pharma grade citrates are expected to demonstrate a CAGR of 9.2%, reagent grade 10.5% and nutraceutical grade 10.0% in volume terms, over CY2022-2025.
Global Carbonate Industry
A carbonate is a salt of carbonic acid (H2CO3). It is found in nature in various forms including minerals, rocks, and living organisms. Carbonate rocks, such as limestone and marble, are made up of carbonate minerals.
Further, carbonates are found in the shells of many marine animals, such as molluscs and corals. They have a wide range of industrial and commercial uses. They are used in the manufacture of cement, glass, paper, and rubber. Carbonates are also used as food additives and in pharmaceuticals.
Carbonate Industry – Market Size
The global carbonate industry volumes grew at a CAGR of 2.4% from 172 million tonnes in CY2018 to 189 million tonnes in CY2022
| Asia | 48% |
| MEA | 3% |
| Europe | 21% |
| North America | 22% |
| Others | 6% |
Indian Carbonate Industry
The pharma grade carbonates have demonstrated a CAGR of 4.5%, reagent grade 1.1%, and nutraceutical grade 3.2% in volume terms, over CY2018-2022. The pharma grade carbonates are expected to demonstrate a CAGR of 10.6%, reagent grade 8.5% and nutraceutical grade 10.4% in volume terms, over CY2022-2025.
Global Phosphate Industry
The global phosphate industry plays a vital role in agriculture and several industrial applications. Phosphate rock, primarily sourced from countries like China, Morocco, the United States, and Russia, serves as the main reservoir of phosphorus, an essential element for the growth of plants and animals. Phosphate includes Sodium Phosphate, Potassium Phosphate, Calcium Phosphate, Ammonium Phosphate, Feed-grade and Industrial-grade, etc. Phosphate finds its application in Pharmaceuticals, Nutraceuticals, Reagents, Agrochemicals, Food and Feed, Cleansers & Detergents, Veterinary, Biotech, Metallurgy, Electronics and Personal Care Industry.
Global Phosphate Industry – Market Size
Global phosphate industry volumes have grown at a CAGR of 1.6% from 209 million tonnes in CY2018 to 222 million tonnes in CY2022.
| Asia | 48% |
| MEA | 12% |
| Europe | 11% |
| North America | 23% |
| Others | 6% |
Indian Phosphate Industry
The Indian phosphate industry volumes grew at a CAGR of 2% from 15.2 million tonnes in CY2018 to 16.5 million tonnes in CY2022
Global Acetate Industry
Acetate is a salt or ester of acetic acid. It is a versatile compound with a wide range of uses in many different industries. An acetate is a salt formed by the combination of acetic acid with a base. Acetates are used as food additives to preserve food, adjust acidity, and enhance flavour. Also, they are used in a variety of cosmetic products, such as nail polish removers, hairsprays, and deodorants. Acetate includes Sodium Acetate, Potassium Acetate, Calcium Acetate, Zinc Acetate, Manganese Acetate, Ammonium Acetate, etc. Acetate finds its application in Nutraceuticals, Reagents, Pharmaceuticals, Food, Chemical, Agriculture, Biotech and Personal Care industry.
Global Acetate Industry – Market Size
Global acetate industry volumes grew at a CAGR of 4% from 1.6 million tonnes in CY2018 to 1.8 million tonnes in CY2022.
| Asia | 62% |
| MEA | 3% |
| Europe | 11% |
| North America | 19% |
| Others | 5% |
Indian Acetate Industry
The Indian acetate industry volumes grew at a CAGR of 4.7% from 69 thousand tonnes in CY2018 to 82 thousand tonnes in CY2022
Global Sulphate Industry
Sulphates are inorganic ions found in nature and synthesized for industry. In the natural world, they occur as aerosols from biomass combustion and as part of the sulphur cycle of some microorganisms.
Sulphates are also the salts and esters of sulphuric acid, a highly corrosive acid. These compounds are valuable in many industries because they are excellent detergents, emulsifiers, and foaming agents. Sulphate includes Sodium Sulphate, Potassium sulphate, Calcium Sulphate, Mahnesium Sulphate, Copper Sulphate, Ferrous Sulphate, etc. Sulphate finds its application in Agriculture, Industrial, Construction, Reagents, Pharmaceutical, Nutraceuticals, Biotechnology, Metallurgy, Personal Care and Food & Beverages industry.
Global Sulphate Industry – Market Size
The global sulphate industry grew at a CAGR of 1.3% in volume terms from 197 million tonnes in CY2018 to 207 million tonnes in CY2022.
| Asia | 18% |
| MEA | 10% |
| Europe | 23% |
| North America | 22% |
| Others | 27% |
Indian Sulphate Industry
The Indian sulphate industry’s consumption volumes grew at a CAGR of 2.0% from 6.2 million tonnes in CY2018 to 6.7 million tonnes in CY2022
Global Gluconate Industry
Gluconates are salts of gluconic acid, a naturally occurring organic acid. They are produced by fermenting glucose, a sugar derived from corn or other starch-based crops. They are used in a variety of products, including food & beverages, pharmaceuticals, personal care products, and industrial applications. Gluconate includes Calcium Gluconate, Potassium Gluconate, Sodium Gluconate, Zinc Gluconate, etc. It finds its application in Nutraceuticals and Pharmaceuticals, Food & Beverages, Construction, Veterinary, Biotech, Metallurgy, Electronics and Personal Care industry.
Global Gluconates Industry – Market Size
The global gluconates industry volumes grew at 2.1% CAGR from 779 thousand tonnes in CY2018 to 848 thousand tonnes in CY2022.
| Asia | 17% |
| MEA | 3% |
| Europe | 21% |
| North America | 25% |
| Others | 34% |
Indian Gluconates Industry
The Indian gluconates industry volumes have grown at a CAGR of 2% from 17.8 thousand tonnes in CY2018 to 20 thousand tonnes in CY2022.
Global Glycinate Industry
Glycinate is an α-amino-acid anion, a conjugate base of glycine, arising from deprotonation of the carboxy group. It has a role as a fundamental metabolite. It is a conjugate base of a glycine. Glycinate includes Zinc Glycinate, Copper Glycinate, Manganese Glycinate, Iron Glycinate, Calcium Glycinate, Magnesium Glycinate, Ferrous Glycinate, Manganese Glycinate, Cobalt Glycinate, Chromium Glycinate, etc. It finds its application in Pharmaceuticals & Nutraceuticals, Reagents, Food & Beverages, Feed, Metallurgy and Biotechnology Industry.
Global Glycinate Industry – Market Size
The global glycinate industry volumes have grown at a CAGR of 3.7% from 35.4 million tonnes in CY2018 to 41.0 million tonnes in CY2022.
| Asia | 27% |
| MEA | 3% |
| Europe | 32% |
| North America | 35% |
| Others | 3% |
The Indian glycinate industry is expected to grow from USD 7.6 million in CY2022 to USD 10.3 million in CY2025, implying a CAGR of 10.5%, driven primarily by volume growth.
EDTA Derivatives Industry
Ethylenediaminetetraacetic acid (EDTA) and its derivatives find use in various applications, including agriculture, pharmaceuticals, food and beverages, and personal care products. These chelating agents serve as essential ingredients for improving product stability and performance. EDTA Derivatives includes Disodim EDTA, Calcium Disodium EDTA, Terasodium EDTA, etc. It Find its application in Reagents, Pharmaceuticals, Nutraceuticals, Industrial, Food, Veterinary, Biotechnology, Electronics, Metallurgy and Personal Care industry.
Global EDTA Derivatives Industry – Market Size
The global EDTA derivatives industry volumes have grown at a CAGR of 4.8% from 190 thousand tonnes in CY2018 to 229 thousand tonnes in CY2022.
| Asia | 47% |
| MEA | 2% |
| Europe | 21% |
| North America | 26% |
| Others | 4% |
Indian EDTA Derivatives Industry
The Indian EDTA derivative industry’s volumes have grown from 10.2 thousand tonnes in CY2018 to 12.2 thousand tonnes in CY2022, at a CAGR of 4.6%.
Global Succinates Industry
Succinates are salts or esters of succinic acid. Succinic acid is a dicarboxylic acid with the chemical formula (CH₂)₂(CO₂H)₂. It is a white, odourless solid with a highly acidic taste. Succinates are commonly used in the pharmaceutical and food applications. They are also used as chemical intermediates and in the production of polymers, clothing fibres, plasticizers, solvents, paints, inks, food & feed additives, pharmaceuticals, perfumes, and an array of industrial and consumer products. Succinate includes Sodium Succinate, Potassium Succinate, Manganese Succinate, Zinc Succinate, Magnesium Succinate, etc. It finds its application in Pharmaceuticals, Reagent, Nutraceuticals, Food, Biotechnology and Personal Care industry.
Global Succinates Industry–Market Size
The global succinates industry volumes grew at a CAGR of 25.1% from 31.3 thousand tonnes in CY2018 to 68.3 thousand tonnes in CY2022.
| Asia | 47% |
| MEA | 2% |
| Europe | 18% |
| North America | 30% |
| Others | 3% |
Indian Succinates Industry
Indian succinates industry volumes grew at a CAGR of 22.7% from 1.4 thousand tonnes in CY2018 to 3.3 thousand tonnes in CY2022.
Products & Services of Kronox Lab sciences
| Product Group | No.of Products | Application Industries |
| Acetate | 12 | Pharmaceuticals, Nutraceuticals, Food |
| Adipate | 2 | Various |
| Ascorbate Derivatives | 6 | Pharmaceuticals, Nutraceuticals |
| Aspartate Derivatives | 8 | Pharmaceuticals, Nutraceuticals |
| Benzoate | 1 | Pharmaceuticals, Nutraceuticals, Food |
| Citrate Derivatives | 22 | Pharmaceuticals, Nutraceuticals, Food |
| EDTA Derivatives | 13 | Pharmaceuticals, Nutraceuticals, Food, Personal Care |
| Gluconate Derivatives | 18 | Pharmaceuticals, Nutraceuticals |
| Glycinate Derivatives | 15 | Pharmaceuticals, Nutraceuticals |
| Lactate | 5 | Pharmaceuticals, Nutraceuticals |
| Malate Derivatives | 4 | Pharmaceuticals, Nutraceuticals |
| Orotate Derivatives | 5 | Pharmaceuticals, Nutraceuticals |
| Propionate | 3 | Pharmaceuticals, Nutraceuticals, Food |
| Sorbate Derivatives | 3 | Pharmaceuticals, Nutraceuticals, Food |
| Succinate | 5 | Pharmaceuticals, Nutraceuticals, Food |
| Total | 122 |
Customer Segments of Kronox Lab sciences
(₹ in million, except for percentages)
| Particulars | For nine months period ended December 31,2023 | For nine months period ended December 31,2022 | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 | |||||
| Amount | % of revenue from operations | Amount | % of revenue from operations | Amount | % of revenue from operations | Amount | % of revenue from operations | Amount | % of revenue from operations | |
| Top ten (10) customer s | 306.08 | 45.22 | 397.06 | 53.58 | 484.43 | 50.68 | 462.03 | 56.18 | 351.80 | 56.32 |
| Top twenty (20)customer s | 396.23 | 58.54 | 496.87 | 67.05 | 621.35 | 65.01 | 568.76 | 69.15 | 443.68 | 71.03 |
| Particulars | Number of customers |
| Domestic Customers (A) | |
| India (Domestic Sales) | 532 |
| Merchant Exports | 12 |
| India (SEZ Sales) | 9 |
| Global Customers (B) | |
| Exports | 39 |
| Total (A+B) | 592 |
Operational Strength of Kronox Lab sciences
Business Verticals & Segments of Kronox Lab sciences:
(₹ in million except for percentages)
| Application/ Industry | For nine months period ended December 31,2023 | For nine months period ended December 31,2022 | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 | |||||
| Amount | % of revenue | Amount | % of revenue | Amount | % of revenue | Amount | % of revenue | Amount | % of revenue | |
| Pharmaceuti cals | 305.46 | 45.13 | 286.96 | 38.72 | 389.78 | 40.78 | 337.24 | 41.00 | 339.86 | 54.41 |
| Scientific Research and LaboratoryTesting | 179.65 | 26.54 | 231.43 | 31.23 | 279.23 | 29.21 | 267.63 | 32.54 | 146.17 | 23.40 |
| Nutraceutica ls | 160.54 | 23.72 | 191.51 | 25.85 | 245.22 | 25.66 | 174.77 | 21.25 | 113.88 | 18.23 |
| Others* | 31.21 | 4.61 | 31.13 | 4.20 | 41.55 | 4.35 | 42.83 | 5.21 | 24.70 | 3.95 |
| Total | 676.86 | 100.00 | 741.03 | 100.00 | 955.78 | 100.00 | 822.47 | 100.00 | 624.60 | 100.00 |
(₹ in million, except for percentages)
| Particulars | For nine months period ended December 31,2023 | For nine months period ended December31 ,2022 | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 | |||||
| Amount | % of revenue from operations | Amount | % of revenue from operations | Amount | % of revenue from operations | Amount | % of revenue from operations | Amount | % of revenue from operations | |
| Domestic customers | 507.16 | 74.93 | 545.36 | 73.59 | 713.10 | 74.61 | 629.52 | 76.54 | 496.17 | 79.44 |
| Internatio nalcustomers | 169.70 | 25.07 | 195.67 | 26.41 | 242.68 | 25.39 | 192.95 | 23.46 | 128.43 | 20.56 |
| Total | 676.86 | 100.00 | 741.03 | 100.00 | 955.78 | 100.00 | 822.47 | 100.00 | 624.60 | 100.00 |
Facilities & Capacity of Kronox Lab sciences
Unit – I
Our Unit – I is located at Block No. 284, Village Dabhasa, Padra, Vadodara, Gujarat. The facility comprises of two manufacturing blocks with an aggregate installed production capacity of 2,400 TPA along with the facility to store finished goods and raw materials. This unit is equipped with glass-lined and stainless-steel reactors with switch capacities ranging between 1 kl to 5 kl, along with various filtration, centrifugation and drying system.
Unit – II
Our Unit – II is located at located at Block No. 138, Village Ekalbara, Padra, Vadodara, Gujarat. The facility has an aggregate installed production capacity of 3,744 TPA along with the facility to store finished goods and raw materials. This unit is equipped with glass-lined and stainless steel reactor switch capacities ranging between 1.5kl and 3kl, along with various pulverisers, filtration, centrifugation and drying system.
Unit – III
Our Unit – III is located at Block No. 353, Village Ekalbara, Padra, Vadodara, Gujarat. This facility has an aggregate installed production capacity of 1,098 TPA along with the facility to store finished goods and raw
materials. This unit is equipped with glass-lined and stainless-steel reactor switch capacities ranging between 1.5 kl and 3 kl, along with various pulverisers, filtration, centrifugation and drying system.
Proposed Unit
We propose to establish a new manufacturing facility at Plot No. D-2/17/1, Dahej-II Industrial Estate, Taluka – Vagra, District – Bharuch, Gujarat, India and have acquired a land admeasuring 20,471 sq. mtrs.
Capacity Utilisation of Kronox Lab sciences
| Particulars | December 31,2023* | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 |
| Unit– I | ||||
| Installed Capacity (in TPA) | 2,400 | 2,400 | 2,400 | 2,400 |
| Capacity Utilized (in TPA) | 1,427.58 | 1,835.54 | 1,858.02 | 2,053.88 |
| Utilized Capacity (in %) | 59.48% | 76.48% | 77.42% | 85.58% |
| Unit– II | ||||
| Installed Capacity (in TPA) | 3,744 | 3,744 | 3,744 | 3,744 |
| Capacity Utilized (in TPA) | 1,975.42 | 2,529.16 | 2,434.42 | 2,604.16 |
| Utilized Capacity (in %) | 52.76% | 67.55% | 65.02% | 69.56% |
| Unit–III | ||||
| Installed Capacity (in TPA) | 1,098 | 1,098 | 1,098 | 1,098 |
| Capacity Utilized (in TPA) | 251.80 | 503.90 | 847.72 | 1,016.56 |
| Utilized Capacity (in %) | 22.93% | 45.89% | 77.21% | 92.58% |
Strengths & Weaknesses (SWOT Analysis) of Kronox Lab sciences
Strengths
- Kronox Lab Sciences Ltd. has a strong presence in the market, which could provide a competitive advantage.
- Their product portfolio and research capabilities might be robust.
- Financial stability and a solid balance sheet could be key strengths.
Weaknesses
- Lack of diversification in their product offerings or overreliance on a single product could be a weakness.
- Any operational inefficiencies or management issues might impact their performance.
- Regulatory challenges or compliance issues could be a concern.
Opportunities
- Expanding into new markets or segments could open up growth opportunities.
- Leveraging technological advancements or strategic partnerships might enhance their position.
- The upcoming IPO (initial public offering) could provide access to capital for expansion.
Threats
- Intense competition from existing players or new entrants could pose a threat.
- Economic downturns or market volatility might impact their business.
- Regulatory changes or adverse industry trends could be challenging.
Peers & Competitive Landscape of Kronox Lab sciences
| Name of the Company | Current market price# | EPS (Basic & Diluted) | PAT Margin(%) | RONW(%) | P/ERatio | NAV(pershare) | Face Value (per share) | Total Income | Market Capitalisation (₹ in million) |
| Kronox Lab Sciences Limited | 4.30 | 17.04 | 37.19 | 12.04 | 10.00 | 974.98 | |||
| Peer-Group | |||||||||
| Tatva ChintanPharma Chem Limited | 1,119.50 | 19.45 | 10.59 | 8.84 | 57.57 | 220.07 | 10.00 | 4,293.56 | 26,187.41 |
| Tanfac Industries Limited | 2,202.80 | 56.27 | 14.66 | 30.46 | 39.15 | 184.74 | 10.00 | 3,828.70 | 21,972.93 |
| Neogen Chemicals Limited | 1,468.95 | 18.94 | 7.24 | 10.36 | 77.55 | 182.90 | 10.00 | 6,906.30 | 38,753.36 |
| Sigachi Industries Limited | 66.05 | 1.42 | 14.10 | 16.22 | 46.64 | 8.73 | 1.00 | 3,087.17 | 20,305.42 |
| DMCC Speciality Chemical Limited | 323.95 | 2.78 | 1.78 | 3.50 | 116.57 | 79.49 | 10.00 | 3,895.88 | 8,079.29 |
Qualitative Factors of Kronox Lab sciences
- Wide range of products finding applications in diversified end user industries
- Long standing relationship with customers
- High entry and exit barriers due to long customer approval cycles and strict product standards
- Focus on R&D and Quality Control
- Zero debt company with strong and consistent financial performance
- Strategically located manufacturing facilities providing supply chain efficiencies
- Experienced Promoters and Senior Management with extensive domain knowledge
Challenges & Risks of Kronox Lab sciences
- top 20 products contributed 60.49%, 70.58%, 68.62%, 69.85% and 70.04% of our revenue for the nine months period ended December 31, 2023, December 31, 2022 and the Fiscal 2023, Fiscal 2022 and Fiscal 2021, respectively. Any change in demand our products of those products could significantly affect our revenues.
- The majority of sale of our products is concentrated in industries viz. Pharmaceuticals and Scientific Research and Laboratory Testing. Any change in demand or change in application or processes by our customers in these industries may lead to loss of revenues and profits.
- Any failure in developing new High Purity Speciality Fine Chemicals may affect our future growth and business.
- top 10 customers contributed 45.22%, 53.58%, 50.68%, 56.18% and 56.32% of our revenue for the nine months periods ended December 31, 2023, December 31, 2022 and the Fiscals 2023, 2022 and 2021 respectively. Further, our Company has not entered into any long-term agreements with our customers for purchasing our products. We are subject to uncertainties in demand and there is no assurance that our customers will continue to purchase our products. This could impact the business and financial performance of our Company.
- op 10 suppliers contributed 44.22%, 45.54%, 42.13%, 42.89% and 46.61% of our total purchase for the nine months periods ended December 31, 2023, December 31, 2022 and the Fiscals 2023, 2022 and 2021, respectively. Our Company has not entered into long-term agreements for the supply of raw materials with our suppliers. In case of shortage of raw materials or if we are unable to procure the raw materials from other sources or in timely manner, we may be unable to meet our production schedules for our products and deliver such products to our customers in timely manner, which may adversely affect our customer relations and reputation.
- Promoters and Promoter Group will continue to retain significant control in our Company after the Offer, which will allow them to influence the outcome of matters submitted to shareholders for approval. Such a concentration of ownership may also have the effect of delaying, preventing or deterring a change in control.
- Majority of our exports is to the USA out of our total exports. Any significant social, political or economic disruptions in the USA or adverse changes in the trade and tariff policies could disrupt our exports to the USA and may adversely affect our business, operations and financial condition.
- operating in a manpower intensive industry. Hence, we may face manpower disruptions and other planned and unplanned outages that could interfere or temporarily disrupt our operations.
| Particulars | Fiscal2023 | Fiscal2022 | Fiscal2021 |
| Attrition rate of our permanent employees (in %) | 5.20 | 0.58 | 3.55 |
| Employee benefits expense (₹ in million) | 70.27 | 57.46 | 53.91 |
Financial Health of Kronox Lab sciences
Key financial ratios
(₹ in million except per share data or unless otherwise stated)
| Key Performance Indicators | Kronox Lab Sciences Limited |
| Revenue from Operations | 676.86 |
| EBITDA | 204.60 |
| EBITDA Margin (%) | 30.23 |
| Profit After Tax for the Year | 154.69 |
| PAT Margin (%) | 22.60 |
| EPS (Basic & Diluted) | 4.17 |
| Total Borrowings | – |
| Net worth | 602.82 |
| ROE (%) | 25.66 |
| ROCE (%) | 33.15 |
| Debt / Equity | – |
| Fixed Assets Turnover Ratio | 2.61 |
| Net Cash from/ (used in) Operating Activities (A) | 153.12 |
| Net Cash from/ (used in) Investing Activities (B) | (173.00) |
Balance sheet
(Rs. in Million)
| Particulars | As at December 31,2023 | As at December 31,2022 | As at March 31,2023 | As at March 31,2022 | As at March31,2021 |
| Assets | |||||
| I . Non‐current assets | 267.34 | 231.39 | 198.54 | 126.27 | 114.25 |
| II. Current assets | 402.24 | 431.13 | 341.80 | 441.61 | 262.21 |
| Total assets | 669.59 | 662.52 | 540.34 | 567.88 | 376.46 |
| Equity and liabilities | |||||
| Equity | |||||
| (a) Equity share capital | 371.04 | 390.42 | 371.04 | 2.41 | 2.41 |
| (b) Other equity | 231.78 | 155.59 | 75.75 | 401.12 | 265.73 |
| Total Equity | 602.82 | 546.01 | 446.79 | 403.53 | 268.14 |
| Liabilities | |||||
| Borrowings | ‐ | ‐ | ‐ | 4.72 | ‐ |
| Lease Liabilities | ‐ | ‐ | ‐ | 16.82 | 27.18 |
| Provisions | 0.31 | 3.65 | 4.87 | 5.20 | 1.72 |
| II. Current liabilities | |||||
| (a) Financial liabilities | |||||
| (i) Borrowings | ‐ | ‐ | ‐ | 1.70 | 0.13 |
| (ii) Lease Liabilities | ‐ | ‐ | ‐ | 10.36 | 8.90 |
| (iii) Trade payables | |||||
| Total outstanding dues of micro enterprise and small enterprise | 26.45 | 49.78 | 28.60 | 60.13 | 15.04 |
| Total outstanding dues of creditors other than micro enterprise and small enterprise | 30.10 | 53.29 | 49.50 | 55.08 | 50.50 |
| (b) Other current liabilities | 5.27 | 4.58 | 5.60 | 2.17 | 2.24 |
| (c) Provisions | 3.69 | 3.09 | 6.37 | 6.08 | 2.47 |
| (d) Current Tax Liabilities (Net) | 0.94 | 2.10 | (1.39) | 2.09 | 0.13 |
| 66.45 | 112.85 | 88.68 | 137.61 | 79.41 | |
| Total equity and liabilities | 669.59 | 662.52 | 540.34 | 567.88 | 376.46 |
Profit & Loss
(Rs. in Million)
| Particulars | For the Financial Year ended March31, 2023 | For the Financial Year ended March 31,2022 | % Change |
| Revenue | |||
| Revenue from operations | 955.78 | 822.47 | 16.21% |
| Other income | 19.20 | 10.93 | 75.71% |
| Total Revenue | 974.98 | 833.40 | 16.99% |
| EXPENSES | |||
| Cost of materials consumed | 580.12 | 479.84 | 20.90% |
| Change in inventories of finished goods, work in progress and goods-in-transit | (31.30) | (5.84) | 435.95% |
| Employee benefits expense | 70.27 | 57.46 | 22.30% |
| Finance costs | 0.93 | 4.05 | (76.99%) |
| Depreciation and amortisation expense | 14.97 | 20.29 | (26.25%) |
| Other expenses | 116.73 | 94.05 | 24.12% |
| Total Expenses | 751.72 | 649.85 | 15.68% |
| Profit before tax | 223.26 | 183.55 | 21.63% |
| Tax expense: | |||
| Current tax | 57.94 | 47.90 | 20.97% |
| Deferred tax | (0.84) | (0.62) | 36.85% |
| Profit after tax | 166.17 | 136.27 | 21.93% |
Cash flow statement
(₹ in million)
| Particulars | For Nine months period ended December 31,2023 | For Nine months period ended December 31,2022 | For the Financial Year ended March 31,2023 | For the Financial Year ended March 31,2022 | For the Financial Year ended March 31,2021 |
| Net cash generated from/ (utilized in) operating activities (A) | 153.12 | 174.72 | 196.65 | 90.20 | 113.14 |
| Net cash utilized in investing activities (B) | (173.00) | (145.86) | (55.17) | (75.99) | (29.56) |
| Net cash generated from/ (utilized in) financing activities (C) | – | (8.95) | (133.96) | (6.66) | (70.95) |
| Net (decrease)/ increase in cash & cash equivalents (A+B+C) | (19.88) | 19.91 | 7.52 | 7.56 | 12.63 |
| Cash and cash equivalents at the beginning of the period/ year | 35.62 | 28.10 | 28.10 | 20.54 | 7.91 |
| Cash and cash equivalents at the end of the period/ year | 15.74 | 48.01 | 35.62 | 28.10 | 20.54 |
Capitalisation statement
(in ₹ million ,except ratios)
| Particulars | Pre-Offer as at December 31,2023 |
| Total Borrowings | |
| Current Borrowings (A) | – |
| Non – current Borrowings (B) | – |
| Total Borrowings(C)=(A)+(B) | – |
| Total Equity | |
| Equity Share Capital (D) | 371.04 |
| Reserve and Surplus (E) | 231.78 |
| Total Equity (F)=(D) +(E) | 602.82 |
| Total Borrowings/Total Equity(C)/(F) | NA |
| Non-Current Borrowing/Total Equity(B)/(F) | NA |
Future Potential & Investor Insights:
Kronox Lab IPO Details (as of June 2, 2024)
| Detail | Information |
|---|---|
| Issue Size | ₹130.15 Crore |
| Price Band | ₹129 – ₹136 per share |
| Lot Size | 110 Shares |
| Face Value | ₹10 per share |
| Opening Date | June 3, 2024 |
| Closing Date | June 5, 2024 |
| Listing Date (Tentative) | June 10, 2024 |
| Registrar | Kfin Technologies Limited |
| Stock Exchanges | BSE, NSE |
Shareholding Pattern:
| S.No. | Name of the shareholder | Percentage of the pre-Offer Equity Sharecapital(%) |
| 1. | Jogindersingh Jaswal | 34.99 |
| 2. | Ketan Ramani | 34.99 |
| 3. | Pritesh Ramani | 30.00 |
| 4. | Ankit Jaswal | Negligible |
| 5. | Anjukumari Jaswal | Negligible |
| 6. | Rupal Ramani | Negligible |
| 7. | Dhruvil Ramani | Negligible |
| 8. | Pooja Parshva Gandhi | Negligible |
| 9. | Deepali Ramani | Negligible |
| Total | 100.00 |
Suppliers & Clients:
(₹ in million except for percentages)
| Particulars | For nine months period ended December 31,2023 | For nine months period ended December 31,2022 | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 | |||||
| Amount | % of total purchase | Amount | % of total purchase | Amount | % of total purchase | Amount | % of total purchase | Amount | % of total purchase | |
| Top five (5) suppliers | 85.71 | 25.68 | 120.20 | 27.73 | 150.53 | 26.62 | 133.91 | 27.10 | 122.25 | 35.07 |
| Top ten (10) suppliers | 147.59 | 44.22 | 197.34 | 45.54 | 238.20 | 42.13 | 211.94 | 42.89 | 162.48 | 46.61 |
| Particulars | Number of customers |
| Domestic Customers(A) | |
| India (Domestic Sales) | 532 |
| Merchant Exports | 12 |
| India (SEZ Sales) | 9 |
| Global Customers(B) | |
| Exports | 39 |
| Total(A+B) | 592 |
Litigation
Refer RHP page no.s of 306-309
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