Companies

Anupam Rasayan eyes higher export revenues with new launches in Europe, Japan

Rutam Vora Ahmedabad | Updated on June 23, 2021

Afzal Malkani, Chief Financial Officer, Anupam Rasayan Limited

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Specialty chemicals maker Anupam Rasayan Limited is looking to strengthen its export business with new product launches in the European and Japanese markets, a senior company official said.

The company currently gets about 58 per cent of the ₹837-crore revenues from exports, which it expects to increase to 60-65 per cent in fiscal 2021-22.

Speaking to BusinessLine, Afzal Malkani, Chief Financial Officer, said, “We will continue to have high focus on export business. Last year, the share of revenues from exports was 58 per cent, which we expect to be 60-65 per cent this year and will continue to remain minimum 60 per cent, going forward.”

The higher share from export business will primarily be based on the new product launches the company plans for its existing markets in Europe and Japan.

“We are looking at launching some new products in the European and Japanese markets. These products will be in the agro and crop protection as well as specialty chemicals verticals,” said Malkani.

Higher utilisation

The company also expects higher utilisation at manufacturing facilities that were commissioned in Jhagadia and Sachin in Gujarat last year. Last year, it had achieved 55 per cent capacity utilisation at both the units; it looks to increase this to 75 per cent this year and further up to 90 per cent next year. “This will help us achieve faster growth. We already have sufficient contracts available from our existing customers and the new ones, including multinational companies.”

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During April and May this year, the company had secured multiple orders worth about ₹1,640 crore.

The two business verticals — life-sciences chemicals (agro chemicals, personal care, pharmaceuticals) and specialty chemicals (dyes and polymer additives) — contribute nearly equally to the company’s growth, Malkani said.

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Future challenges

The future challenge lies in terms of volatility in raw material prices i.e. benzene and phenol-based derivatives. “Our 50 per cent raw materials are based on benzene and phenol-based derivatives, which faced volatility in prices in the past one year. In last 6-9 months, prices have increased by 10-12 per cent. Nearly 70 per cent of the raw material is available locally, but 30 per cent is imported. However, we are protected from the price fluctuations as we have sufficient inventory,” Malkani said, adding that the company will continue to maintain EBIDTA margins at minimum 20 per cent.

Anupam Rasayan shares traded at ₹737.80 on Wednesday, nearly 1 per cent up from the previous close on BSE.

Published on June 23, 2021

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