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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.