Company Overview Industry Overview Manufacturing FacilitiesIndustry Overview - Domestic The Chemical industry is one of the leading industries in India. Textile industry is the largest

Company Overview

Industry Overview

Manufacturing Facilities

Financials

► Bodal Chemicals, formerly known as J K Pharma was incorporated in 1989. Company

changed its name to BODAL CHEMICALS PRIVATE LTD. in 1994

► Manufacturer of over 25 varieties of Dye Intermediates and around 150 variants in

Dyestuff which are principally used as raw materials in Textile, Leather, Paper & other

Dye consuming industries. In the basic chemical division, around 7 variants are

manufactured.

► Company was promoted by Mr. Suresh Patel, veteran in Dyes and Chemical Industry.

Company Overview

► Company was promoted by Mr. Suresh Patel, veteran in Dyes and Chemical Industry.

The company acquired Dintex Dye Chem Limited and as result of reverse merger the

company got listed on BSE and NSE and changed its name to Bodal Chemicals

Limited.

► Out of total production more than 40% is being exported to various countries (USA,

UK, Germany, Spain, Turkey, China, Indonesia, Taiwan, Korea, Greece, Egypt,

Portugal, Hong Kong, Italy, Bangladesh, Pakistan, etc.) and has approvals from many

global players in the field of Chemicals & Dyestuff.

Presence across the globe

Bodal Chemical Limited

Basic Chemicals Division

(10%)

Dye Intermediate Division

(45%)

Dyestuff Division

(45%)

Installed capacity 190,000 mt/year

Installed capacity 30,000 mt/year

Installed Capacity 17,000 mt/year

Production Units – Capacity MT/YEAR

UNITS LOCATIONS Basic Chemicals1,70,000 MT/Year

Dye Intermediates30,000 MT/YEAR

Dyestuff17,000 MT/YEAR

UNIT I AHMEDABAD

UNIT II AHMEDABAD _____

UNIT III AHMEDABAD _____ _____

UNIT IV AHMEDABAD _____ _____

UNIT V ANKLESHWAR _____ _____

UNIT VI PANOLI(closed) _____ _____

UNIT VII Vadodara

UNIT VIII Vadodara _____ _____

Company Overview

Industry Overview

Manufacturing Facilities

Financials

Industry Overview - Domestic► The Chemical industry is one of the leading industries in India. Textile industry is the

largest consumer of dyestuffs at nearly 70 per cent.

► From being importers and distributors in the 1950’s, India has now emerged as a very

strong player in dyestuffs and dyes intermediates, particularly reactive, acid, vat and

direct dyes.

► The total investment in Indian Chemical Sector is approx. USD 60 billion, employment

generated is about 1 million, accounts for 13-14% of total exports and 8-9% of total

imports of the country.

► There are about 50 units in the organized sector and about 900 units in the small scale

sector.

► Just like Agrochemicals, per capita consumption of dyes too is very low (400 gms) as

compared to developed countries like USA (15 kgs).

► However, India is a major exporter of dyes, mostly due to restriction of production of

some of the dyes and intermediates in the developed countries due to pollution

emissions.

Industry Overview- Global

► India is 12th largest in the world and 3rd largest in Asia in terms of volumes.

► China, Korea, India, Japan and Taiwan are the major players. However in terms of

market share, European countries have remained the largest producers because they

have concentrated on specialty products.

► About 7 large players have hold over 50 % Market share. DyeStar, a joint venture

between Hoechst AG and Bayer AG, is the largest producer of dyestuffs with a 15%

market share, followed by BASF with 12 %, Ciba Specialty (now Huntsman) at 11%

and Clariant AG at 7 %. About 2000 unorganized players contribute the rest.

► Nearly 80 per cent of the dyes is utilized by the textile industry, the balance by paints,

printing inks, rubber & leather.

Production shares of major chemicals FY13 (India)► Chemicals can be broken down into the following categories.

(Source : Department of chemicals, GOI)

Industry Overview

► Before 1970 the Dyestuffs and Dye Intermediates Industry was present mainly in

Europe, America and Japan.

► In 1975 large Italian company named ACNA was forced to closed down due to pollution

issues.

► That was the turning point of the slow and gradual shift from Europe, US and Japan to

India mainly Gujarat and Maharashtra.

► Availability of basic chemicals and final consumer (textile) were the main parameters

for the shift. The government's promotion of GIDC and cheap labor added to the

growth between 1980 and 1990.growth between 1980 and 1990.

► Environmental laws has been enforced in 1974 (The Water Act) and in 1977 (The

Water CESS Act) by Central Pollution Control Board.

Industry Overview

► 1975 to 1980 : Industry started in India in Gujarat and Maharashtra.

► 1980 to 1990 : Industry took growth. Environmental laws were in force.

► 1990 to 2000 : Growth continued till 1995. In 1995-96 Gujarat High court has closed

down many units in Gujarat because of Pollution. At that time common effluent

treatment concept was introduced. Then growth stopped in India. This was the starting

point for China in this Industry.

► 2000 to 2010 : No significant growth in India. But China grew till 2010. In India

environment laws significantly changed in Sept 2007 where by permission for new

capacity become very difficult and environmental issues became stringent forcapacity become very difficult and environmental issues became stringent for

existing facilities / capacities.

► Since 2010 In India no capacity expansion. Environmental observance started in

China from 2012, and this industry started facing pollution related issues very seriously

and many units closed down.

Industry Overview

(Source : A BRIEF REPORT ON CHEMICAL AND PETROCHEMICAL INDUSTRY IN INDIA

October 2013, Corporate Catalyst India ; Planning Commission report, 2012-17)

Industry Overview – upcoming 10 years

India’s Growing Chemical Exports

(Source : A BRIEF REPORT ON CHEMICAL AND PETROCHEMICAL INDUSTRY IN INDIA

October 2013, Corporate Catalyst India)

Company Overview

Industry Overview

Manufacturing Facilities

Financials

Basic Chemical Division

Product Name Application

Sulphuric Acid

Fertilizers, alum, explosives, iron & steel industry for pickling,

rechargeable batteries, extraction of precious metals, dyes

intermediaries, detergents, pharma, rayon fibers, organic

synthesis

Oleum 23% & 65%Industrial Detergents, Dye Intermediaries, Pigments, Liq 502,

Explosives, Soaps and Detergents

Sulphur Trioxide Soaps and Detergents and Dye IntermediariesSulphur Trioxide Soaps and Detergents and Dye Intermediaries

Chlorosulphonic Acid

Sulphating, Sulphonating, Chlosulphonating, Dye

Intermediates, Pigments, Resins, Pharmaceuticals and

Synthetic Detergents

Key Highlights

• Centrally Located

• 50% in house consumption

• Captive Power Plant & Steam Generation

• Economical compared to China

• Latest upgraded production facilities

Dye Intermediates Division

Key Highlights

► Largest manufacturer of Dye Intermediaries in India with 25 years of experience.

► High entry barriers due to tough process to acquire new permission and heavy capital

expenditure (initially).

► Very competitive to Chinese suppliers in terms of pricing.

► Easy raw material availability in Gujarat.

► As per present Environmental laws in India, new production facilities or expansion in

near future is possible only for current players. Bodal is the only player with effluentnear future is possible only for current players. Bodal is the only player with effluent

disposal permission of 10 lac litres per day.

► Dye Intermediates products - expansions or higher supply will not be there from China.

► Bodal consumes 40% of Dye Intermediates In-house.

► Bodal is in a position to sell outside or consume in house depending upon the market

dynamics.

Dyestuff Division

Key Products Consumer Industry

Reactive Dyes Textiles

Acid Dyes Leather and Textiles

Direct Dyes Paper and Textiles

Key Highlights

• Manufacturing 150 products

• Large capacity for standardizing, storage and packaging & distribution• Large capacity for standardizing, storage and packaging & distribution

• In house Ice plant with 300 MT/day capacity

• In house ETP plant with 1 million liters / day

• Selling under own brand name across 35 countries

• Contract manufacturing for leading MNCs

• Technical expertise, pre registered products in REACH for Europe, GOTS

certification

• Ample scope for Increasing Production with existing Infrastructure.

Bodal Chemicals - Strengths

► Most Integrated Indian dyestuff company with 2 stage backward integration of dye

intermediates and basic chemicals.

► Known for high quality dyes and dyes intermediates. In house manufacturing of more

than 25 dye intermediates and 150 dyestuff products

► Sulphuric acid plant has steam as a by product in plant 7, used in the dyes and dye

intermediates plants in the same campus deriving big economical benefit. Ice plants

also save a lot of cost and time.

► In Bodal unit 7, all types of acids consumption is 100 MT/day and is transported from

sulphuric acid plant by pipeline saving transportation cost.

► Bodal has in invested more than 1 million USD for making an international level

dyestuff technical service/quality control/ R&D laboratory. This facility enables the

company to have one of the best testing facilities where colour shades can be tested.

Bodal Head Quarter

Photo Gallery

21

Baroda Office

Photo Gallery

22

Photo Gallery

Dye Intermediates Plant

Photo Gallery

Sulfuric Acid Plant

Company Overview

Industry Overview

Manufacturing Facilities

Financials

6,033

9,595

6,000

8,000

10,000

12,000

Net Sales (Rs Mn)

4,801

5,713 6,033

5,238

-

2,000

4,000

FY10 FY11 FY12 FY13 FY14

EBTIDA (Rs Mn)

1,890

1,000

1,200

1,400

1,600

1,800

2,000

463

605

46

209

-

200

400

600

800

FY10 FY11 FY12 FY13 FY14

PBT (Rs Mn)

204 251

471

100

200

300

400

500

600

(387)

(309)

(500)

(400)

(300)

(200)

(100)

-

FY10 FY11 FY12 FY13 FY14

PAT (Rs Mn)

135 168

307

-

100

200

300

400

(283)

(211)

(400)

(300)

(200)

(100)

-

FY10 FY11 FY12 FY13 FY14

EPS (Rs)

6.8

9.6

4.0

6.0

8.0

10.0

12.0

1.7

(2.7)

(1.9)

(4.0)

(2.0)

-

2.0

FY10 FY11 FY12 FY13 FY14

Return Ratios (%)

35.1 23.3 21.2

32.4

-10

0

10

20

30

40

15

20

25

30

35

40

Ro

AN

W (

%)

Ro

AC

E (

%)

10.3 12.1

(2.9)

1.1

(41.5)(39.1)

-60

-50

-40

-30

-20

-10

-5

0

5

10

FY10 FY11 FY12 FY13 FY14

RoCE (in %) - LHS RoNW (in %) - RHS

Opportunities – Dyestuffs & Dye Intermediates

► Indian companies have a market share of 6-7%, with a potential to achieve 20% market

share in near future.

► Being a leader, Bodal has a huge opportunity to gain a major share of this market with

strong experience, expertise and large capacity.

► Large MNCs are increasing their outsourcing to India as well as some of their plants

are closing offering an opportunity for integrated players like Bodal.