Tag Specialty Chemicals

PI Industries ltd
PI Industries: Specialty Chemicals Sector, New Plants, and Market Expansion

Business and Industry Overview: 

PI Industries Ltd is a big Indian company. It makes farm chemicals and medicine-related chemicals. It started in 1946 and is in Gurugram, Haryana. The company works in India and also sends its products to other countries. It has modern factories in Gujarat and strong research teams. The main business is farm chemicals. This part gives 96% of the total money in FY24. It has two parts. One is CSM exports. Here, PI makes special chemicals for global companies. It does research, tests, and large-scale production. This part grew 19% in FY24. It got many orders, worth $1.5–1.55 billion in Q1 FY25. The other part is for India. It sells insect killers, weed killers, and other farm products. It is the top maker of Profenofos, Ethion, and Phorate in India. This part grew 12% in FY23 but fell 6% in FY24 because of bad weather and El Niño. But natural (bio) products grew 29% in FY24. PI launched 7 new products in FY24. The company also started manufacturing medicine chemicals in 2023. It bought two foreign companies for this. Now, pharma gives 4% of the total money. PI sells in over 30 countries. In FY24, 44% of sales came from North America, 23% from Asia, 18% from India, 12% from Europe, and 3% from other places. It has over 15,000 dealers and 100,000 shops in India. It met 2 million farmers in FY24. It has 5 factories and 15 plants. It plans 2 more plants in FY25. It spends 3% of its money on research. It has labs in 4 cities and filed 170+ patents. It made 13 new products from FY22 to Q1 FY25. In August 2024, it bought a UK company called Plant Health Care Plc for £32.8 million. This company makes natural farm products. In FY25, PI will launch 9 new products in India and 5 under Jivagro for fruits and vegetables. It wants to grow 15% in FY25 and increase profit. 

Latest Stock News: 

Shares of specialty chemical makers, including PI Industries, have recently recovered after facing heavy selling pressure. On April 11, 2025, the stock market saw a positive move for these companies, including PI Industries, which saw its share price surge by 7.4% to ₹3,538. This was after US President Donald Trump announced a 90-day pause on reciprocal tariffs, giving short-term relief to India. The decision boosted investor confidence and led to a rise in demand for PI Industries and other chemical stocks like Vinati Organics and Clean Science & Technology. PI Industries has a significant exposure to the US market, with 43% of its revenues coming from there. Other companies like Vinati Organics (20%) and Clean Science & Technology (17%) also benefit from this market. The rise in chemical stocks is also supported by Trump’s decision to increase tariffs on China, which now stands at 145%. While this could benefit Indian chemical companies, there are concerns that Chinese manufacturers might start dumping products in India due to these higher tariffs. This could hurt the pricing power and profits of domestic players. 

Despite this, the Indian chemical sector remains optimistic about the US market. However, there are fears that rising Chinese imports into India and the global market could impact the pricing for Indian companies, with price corrections expected. Credit rating agency Crisil also warned that these trade uncertainties could disrupt the recovery of profitability in India’s specialty chemicals sector, potentially slowing growth in the coming fiscal years. 

Potentials: 

PI Industries has big plans for the future. In FY25, they want to launch 9 new products in India. They will focus on the horticulture area and add 5 new products under the Jivagro brand. The company aims to grow its revenue by 15% and also improve profits. To help with this, they are spending ₹800-900 crore to build two new plants. One plant will make special products, and the other will make several different products. 

PI Industries is also growing in new areas. In 2024, they bought a company called Plant Health Care Plc for £32.8 million. This company has knowledge in technology that helps in farming. This will help PI Industries grow in the farming business, focusing on sustainable farming. The company is also working on new ideas. They have filed over 170 patents and are working on 55 new projects. Half of these projects are in new areas outside of agrochemicals. 

PI Industries is also looking to grow in other countries. They get 43% of their revenue from exports. They want to do more business in the U.S. and Europe. With new products, research, and new purchases, PI Industries plans to grow even more in the future. 

Analyst Insights: 

  • Market capitalisation: ₹ 54,732 Cr. 
  • Current Price: ₹ 3,607 
  • 52-Week High/Low: ₹ 4,804 / 2,951 
  • Stock P/E: 32.2 
  • Dividend Yield: 0.42% 
  • Return on Capital Employed (ROCE): 24.0% 
  • Return on Equity: 21.1% 

PI Industries is a strong company. Over the last 5 years, it has grown its profits by 33% every year. This shows it has been doing well and can keep growing. The company makes good profits. It has a high return on capital employed (ROCE) of 24%. This means it is using its investments wisely. Its return on equity (ROE) is 21.1%, which is also strong. These numbers are better than its competitors like UPL, which has a lower ROE of 14.5%. This shows PI Industries is more efficient in using its resources. PI Industries has very little debt. This makes the company financially strong. Since it does not have much debt, it does not need to pay a lot of interest. This gives it more stability. In the last quarter, PI Industries’ profit dropped by 16.92% compared to the same time last year. Its sales grew only by 0.17%. This shows that there might be some short-term problems, like rising costs or issues in the supply chain. But the company has dealt with challenges before, so it may recover soon. PI Industries’ stock is more expensive compared to others. Its price-to-earnings (P/E) ratio is 32.2, while UPL’s P/E ratio is 17.8. This means the stock is priced higher. But it is still okay because PI Industries is growing faster and making more profits. Overall, PI Industries is a strong company. It has good growth, no debt, and makes strong profits. There are some short-term challenges, but it is still a good long-term investment. However, the current stock price is high, so investors should consider this before buying. 

Tata Chemicals Q3 FY25 Results
Tata Chemicals Q3 FY25 Results: Reports ₹53 Crore Loss as Revenue Declines 3.8%

Tata Chemicals Ltd: Overview 

Tata Chemicals Ltd., a key player in the global chemicals and industrial products industry, operates in diversified segments including basic chemistry, consumer products, and specialty chemicals. Established as part of the Tata Group, the company has a strong presence in India and international markets such as the U.S., UK, and Africa. Tata Chemicals is known for its leadership in soda ash production, which is a critical raw material for glass, detergents, and other industrial applications. The company also manufactures salt, bicarbonate, silica, and fertilizers, supporting industries ranging from agriculture to pharmaceuticals. With a commitment to sustainability, Tata Chemicals integrates green chemistry into its operations, ensuring responsible manufacturing processes and resource utilization. The company has been investing in research and development, particularly in advanced materials, biotechnology, and sustainable solutions to drive long-term growth. The chemical industry plays a crucial role in global economic development, with increasing demand for specialty and performance chemicals in industries such as automotive, pharmaceuticals, agriculture, and consumer goods. The global chemical market is projected to witness steady growth driven by industrialization, urbanization, and sustainability initiatives. In India, the government’s focus on self-reliance (Atmanirbhar Bharat) and incentives for domestic chemical manufacturing are expected to boost the sector. The specialty chemicals market, in particular, is seeing rapid growth due to technological advancements and shifting consumer preferences. Challenges such as raw material price fluctuations, regulatory requirements, and environmental concerns continue to impact the industry. However, Tata Chemicals, with its diversified portfolio and strong international presence, is well-positioned to capitalize on the rising demand for sustainable and high-value chemical solutions. 

Latest Stock News 

The demand in the US and Western US markets has shown a slight decline, while China’s exports have moderated and remain muted. In India, soda ash prices have dropped by 15% year-on-year, primarily due to lower-priced imports. Kenya experienced lower volumes, although prices remained steady. Rallis India, a subsidiary, reported weaker results due to continued sluggishness in export demand. The company is now focusing more on customer engagement and expanding capacity, with a particular emphasis on India. China continues to be a net exporter, mainly catering to the Southeast Asian market. UK had stable volumes; however, the prices had softened. Kenya saw marginally higher volume and marginally higher prices sequentially.  A phased capital expenditure (Capex) plan of 300,000 tons has been set in motion across the USA, Kenya, and India. Additionally, two major plant shutdowns occurred this year, leading to higher production volumes compared to the previous quarter, though restarting these facilities requires approximately ₹30 crores. Year-on-year, EBITDA has declined by ₹108 crore, primarily due to a 12% increase in employee benefits and a 16% rise in freight costs. The company’s total capacity stands at around 250,000 tons per quarter, and it is currently operating at 235,000 tons, reflecting a high utilization rate. 

Business Segments

  • Basic Chemistry Products: This segment includes soda ash, sodium bicarbonate, salt, and limestone, which are used in industries such as glass, detergents, and textiles. Tata Chemicals is one of the leading producers of soda ash globally and serves key markets in India, the U.S., and Europe. 
  • Specialty Products: Tata Chemicals has been focusing on the development of specialty chemicals, including Nano-materials, Nutraceuticals, and biotechnology-based solutions. The company’s investments in lithium-ion battery recycling and energy storage materials position it as a future-ready player in the emerging clean energy sector. 
  • Consumer Products: Tata Chemicals has a growing portfolio in consumer essentials, including Tata Salt, which is one of India’s most trusted brands. The company has expanded into pulses, spices, and nutritional supplements, leveraging its strong distribution network. 
  • Agri-Solutions: The Company provides high-quality fertilizers, crop protection solutions, and farm inputs to support sustainable agriculture. With a focus on soil health and productivity enhancement, Tata Chemicals contributes to India’s agricultural growth 

Subsidiary Information: 

  • Tata Chemicals North America (TCNA): Tata Chemicals North America operates in the U.S. and is a leading producer of soda ash. The company owns one of the world’s largest natural soda ash deposits in Wyoming, giving it a cost advantage and securing a strong supply chain for North American and global markets. TCNA plays a crucial role in Tata Chemicals’ international expansion strategy. 
  • Tata Chemicals Europe (TCE): Tata Chemicals Europe focuses on manufacturing and supplying soda ash, sodium bicarbonate, and other industrial chemicals in the European market. The company has been actively investing in carbon capture and sustainable manufacturing technologies to align with global environmental regulations and reduce carbon emissions. 
  • Rallis India Ltd: A subsidiary of Tata Chemicals, Rallis India is a major player in the agrochemicals sector. It specializes in crop protection solutions, seeds, and specialty nutrients, catering to the needs of Indian farmers. Rallis India’s strong research capabilities and distribution network contribute significantly to Tata Chemicals’ agri-business. 
  • Tata Chemicals Magadi Ltd: Located in Kenya, Tata Chemicals Magadi is Africa’s largest soda ash manufacturer. The subsidiary has access to extensive trona reserves, ensuring a consistent supply of raw materials for soda ash production. It serves markets across Africa and Asia, strengthening Tata Chemicals’ global footprint. 
  • Innovation Centre (Tata Chemicals Innovation Hub): Tata Chemicals has set up a dedicated research and innovation center to focus on next-generation materials, biotechnology, and energy solutions. This subsidiary supports the company’s long-term vision of becoming a leader in sustainable and high-tech chemical solutions. The innovation hub plays a vital role in driving new product development and improving operational efficiencies. 

Q3 FY25 Earnings 

  • Revenue of ₹3,590 crore in Q3 FY25 down by 3.71% YoY from ₹3,730 crore in Q3 FY24.  
  • EBITDA of ₹34 crore in this quarter at a margin of 11% compared to 15% in Q3 FY24. 
  • Loss of ₹21 crore in this quarter compared to a ₹194 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 3730 3590 16789 15421 
Expenses 3188 3584 12969 12574 
EBITDA 542 34 3820 2847 
OPM 15% 0.9% 23% 18% 
Other Income 98 28 218 -507 
Net Profit 194 -21 2434 435 
NPM 5.2% -0.6% 14.5% 2.8% 
EPS 6.2 -2.1 90.9 10.5 
Pidilite Industries Ltd- Q3 FY25 Results
Pidilite Industries Ltd: Q3 FY25 Results, 9% Profit Growth, Market Leadership and Business Insights

Pidilite Industries Ltd: Overview 

Pidilite Industries Ltd is a leading Indian adhesives and specialty chemicals company, well-known for its flagship product, Fevicol. Founded in 1959 and headquartered in Mumbai, the company has established itself as a market leader in adhesives, sealants, construction chemicals, and arts and crafts products. Pidilite caters to a diverse range of industries, including packaging, furniture, construction, automotive, and consumer goods, offering innovative solutions that meet specific needs. The company operates with a strong portfolio of brands like Dr. Fixit, M-Seal, and Fevikwik, which enjoy widespread recognition and trust among consumers and professionals alike. With a robust distribution network that spans across urban and rural areas, Pidilite Industries ensures its products reach the remotest parts of India while also expanding its global footprint. The company emphasizes sustainable practices and continuous innovation, aligning its operations with emerging trends and customer preferences. The Indian specialty chemicals and adhesives market is experiencing rapid growth, driven by rising construction activities, urbanization, and increasing consumer spending on home improvement. As industrial activity and infrastructure projects gain momentum, the demand for adhesives and sealants is expected to rise. Pidilite, with its extensive product offerings and strong brand equity, is well-positioned to benefit from this growth. Globally, the specialty chemicals market is being shaped by advancements in technology, sustainable product development, and the growing focus on green solutions, providing further opportunities for Pidilite to expand its market presence. 

Latest Stock News 

The Consumer and Bazaar (C&B) segment demonstrated steady performance with a Unit Volume Growth (UVG) of 7.3%, reflecting consistent demand in its core markets. Meanwhile, the Business-to-Business (B2B) segment showcased remarkable growth momentum, achieving an impressive UVG of 21.7%, highlighting its strong traction across industrial and institutional clients. However, the performance of international subsidiaries, excluding Pidilite USA and Pulvitec Brazil was relatively modest.  

This was attributed to ongoing global economic uncertainties, persistent inflationary pressures, and political instability in specific regions, which impacted their sales growth. Despite these challenges, the company’s overall revenue for the quarter exhibited a robust increase of 9.3%, fueled by a UVG of 9.7% across various product categories and geographic markets, demonstrating resilience and widespread demand for its offerings. Additionally, the company continued to prioritize shareholder value, maintaining a substantial total dividend payout of 45.4% in FY24, reflecting its commitment to delivering consistent returns. 

Business Segments

  • Consumer and Bazaar Products: This is Pidilite’s largest business segment, contributing significantly to its revenue. It includes products like adhesives (Fevicol, Fevikwik), sealants (M-Seal), construction chemicals (Dr. Fixit), and arts and crafts products (Fevicryl, Hobby Ideas). These products cater to individual consumers, craftsmen, and contractors and are widely used in home improvement, repair, and construction projects. 
  • Industrial Products: This segment provides adhesives, sealants, and specialty chemicals to industries such as packaging, textiles, paper, leather, and automotive. Pidilite’s industrial products are tailored to meet the specific needs of its business clients and are integral to their manufacturing processes. 
  • Exports: Pidilite exports its products to over 80 countries, catering to the demand for adhesives, construction chemicals, and art products in international markets. The company has established a strong presence in markets like the Middle East, Africa, and Southeast Asia. 
  • Others: This includes a variety of niche products and solutions, such as automotive maintenance products, waterproofing services, and wood finishes. The company also operates in the animal health and crop care segment through specialty chemicals. 

Subsidiary Information

  • Nina Waterproofing Systems Pvt Ltd: Nina Waterproofing Systems Pvt Ltd specializes in providing comprehensive waterproofing solutions for large-scale infrastructure and construction projects. This subsidiary is known for its advanced expertise in waterproofing technologies, offering a wide range of services and products designed to enhance the durability and structural integrity of buildings. Its portfolio complements Pidilite Industries’ existing offerings in the construction chemicals sector, strengthening the company’s position as a leading provider of innovative and reliable waterproofing solutions. 
  • Percept Waterproofing Services Ltd: Percept Waterproofing Services Ltd is a key subsidiary of Pidilite Industries, focused on delivering high-performance waterproofing solutions for large-scale construction projects. The company works in close collaboration with contractors, architects, and builders to ensure superior results that meet the highest quality standards. Its contributions play a pivotal role in enhancing Pidilite’s reputation as a trusted partner in the waterproofing domain. 
  • CIPY Polyurethanes Pvt Ltd: CIPY Polyurethanes Pvt Ltd, a significant acquisition by Pidilite Industries, is a leading manufacturer of floor coatings and polyurethane products. This subsidiary primarily serves the industrial and commercial flooring markets, offering innovative and durable solutions that meet the rigorous demands of various sectors. Its product portfolio includes epoxy and polyurethane-based floor coatings, which are essential for environments requiring high resistance to wear, chemicals, and abrasion. 
  • Pidilite MEA Chemicals LLC: Pidilite MEA Chemicals LLC serves as Pidilite’s regional hub for operations in the Middle East and Africa, enabling the company to tap into these high-growth markets. This subsidiary focuses on providing a diverse range of adhesives, construction chemicals, and specialty products tailored to the unique needs of clients in the region. By catering to local market demands and preferences, Pidilite MEA Chemicals LLC helps the parent company establish a robust presence in international markets, driving growth and brand recognition.  

Q3 FY24 Earnings 

  • Revenue of ₹3369 crore in Q3 FY24 up by 5.3% YoY from ₹3130 crore in Q3 FY24.  
  • EBITDA of ₹798 crore in this quarter at a margin of 24% compared to 24% in Q3 FY24. 
  • Profit of ₹557 crore in this quarter compared to a ₹511 crore profit in Q3 FY24. 

Financial Summary 

INR Cr. Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 3130 3369 11799 12383 
Expenses 2388 2571 9813 9675 
EBITDA 742 798 1986 2708 
OPM 24% 24% 17% 22% 
Other Income 37 56 55 63 
Net Profit 511 557 1289 1747 
NPM 16.3% 16.5% 10.9% 14.1% 
EPS 10 10.9 25.1 34 
Himadri Specialty Chemical
Himadri Specialty Chemical: ₹120 Cr Expansion for High-Value Products to Fuel Atmanirbhar Bharat Vision

Himadri Specialty Chemical Ltd: Overview 

Himadri Specialty Chemical Ltd is a leading integrated specialty carbon company in India with a diversified product portfolio. Established in 1987, the company specializes in the manufacture of coal tar pitch, carbon black, and advanced carbon materials. Himadri caters to a variety of industries, including aluminium, graphite, tires, lithium-ion batteries, and paints. It is recognized for its focus on innovation and sustainability, offering high-quality products that meet stringent global standards. The company’s state-of-the-art facilities and strong R&D capabilities enable it to consistently deliver value-added solutions to its clients, both domestically and internationally. Himadri’s core offerings include coal tar pitch used in the aluminium and graphite industries, carbon black for tire manufacturing, and advanced carbon materials for lithium-ion battery applications. With an emphasis on sustainable operations, the company is investing in cutting-edge technologies and expanding its footprint in high-growth sectors like energy storage and electric vehicles. The specialty carbon and chemical industry is poised for significant growth, driven by increasing demand from end-user industries such as aluminium, tire manufacturing, and energy storage. The global shift towards electric vehicles and renewable energy has created robust opportunities for advanced carbon materials, particularly in the lithium-ion battery segment. This industry is also benefitting from infrastructure development and industrial expansion in emerging economies like India and China. 

Latest Stock News (16 Jan 2025)

Himadri Speciality Chemical Ltd has recently been awarded with Eco Vadis Platinum medal, this recognition is awarded to the top 1% of company by Eco Vadis in the world amongst more than 130,000 assessed companies globally. Aligned with our vision to expand into high-value products, we have planned a new capex for production of speciality products at an investment of Rs. 120 crore, funded through internal accruals. This facility will enable us to extract high-value specialty products, including Anthraquinone, Carbazole, and Fluorene from existing coal tar distillates at our existing facility and is expected to commence operations within the next 18 months. These products have application in dyes, pigments, pharma and various other industries. This strategic move marks a significant step towards reducing import dependency and aligns with Himadri’s commitment towards the Government of India’s vision of an Atmanirbhar Bharat. 

Business Segments 

  • The product portfolio of Himadri Speciality Chemical Ltd includes battery materials, Carbon Black, Specialty carbon black, Coal tar pitch, refined naphthalene, SNF & PCE, Specialty oils, clean energy and Anticorrosion products. The company is working in all this industries and acquiring the companies in that industry to diversify its product portfolio. 

Subsidiary Information 

  • Combe Projects Pvt Ltd: It is a wholly-owned is engaged in project-specific developments and investments, supporting the expansion and diversification of Himadri’s business operations. While specific details about its core activities are limited, subsidiaries like this typically assist in executing large-scale projects, infrastructure development, or specialized chemical production. 
  • Himadri Clean Energy Ltd: It focuses on the development and production of clean energy solutions. It plays a pivotal role in Himadri’s strategy to capitalize on the growing demand for sustainable energy products. The company is involved in the manufacturing of advanced carbon materials used in lithium-ion batteries, a key component of electric vehicles and renewable energy storage systems. This aligns with global trends favouring green and clean energy solutions. 
  • Himadri Future Material Technology Ltd: It is at the forefront of the company’s innovation and R&D initiatives. It specializes in advanced material development, particularly for high-growth sectors like electric vehicles, renewable energy, and energy storage. This subsidiary likely focuses on creating cutting-edge solutions to cater to the evolving demands of emerging industries, enabling Himadri to maintain its competitive edge in the global specialty chemical market. 
  • AAT Global Ltd: It is designed to enhance the company’s global presence. This subsidiary likely handles international operations, partnerships, and market expansion initiatives. It supports Himadri’s aim to strengthen its position in international markets and explore new opportunities in the specialty carbon and advanced materials sectors. 

Q3 FY25 & Business Highlights 

  • Revenue of ₹1141 crore in Q3 FY25 up by 8.4% YoY from ₹1053 crore in Q3 FY24.  
  • EBITDA of ₹221 crore in this quarter at a margin of 19% compared to 17% in Q3 FY24. 
  • Profit of ₹141 crore in this quarter compared to a ₹109 crore profit in Q3 FY24. 
  • The company is net debt free as on December 2024, with positive cash balance of ₹109 crore on its balance sheet. 
  • The estimated capex for setting up facilities for extracting Anthraquinone, Cabazole & Fluorine from existing coal tar distillates. This capex is estimated to be of ₹120 crores and will be sourced from Internal accruals and is to be completed in 18 months from the time of commencement. 
  • The Cathode Active material capex is on schedule and is going to be live by Q3 FY27, and specialty carbon black line project to be live by Q3 FY26. 
  • It acquired 12.79% stake in Sicona an Australian startup specializing in lithium-ion batteries, and it is 50%-100% better in delivering higher capacity than conventional graphite anodes. 

Financial Summary 

INR Cr. Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 1053 1141 4172 4185 
Expenses 879 920 3773 3540 
EBITDA 174 221 399 645 
OPM 17% 19% 10% 15% 
Net Profit 109 206 216 411 
NPM 10.4% 18.1% 5.2% 9.8% 
EPS 2.47 141 4.99 8.34