Chemcon Specialty Chemicals Limited, a leading manufacturer of specialized chemicals, has commissioned 2 plants - P2 and P7 for manufacturing of HMDS with capacity of 1,800 MTPA each. P2 has flexibility to manufacture high purity HMDS and P7 has flexibility to manufacture CBC and DHT.
4 CBC is widely used in the pharmaceutical and agrochemical industry in the preparation of Pyrazinamide, a medication used to treat tuberculosis. It is also used for weed control in maize and sugarcane. The company executed its first sale of 4 CBC in fiscal 2021.
2,5 DHT is predominately used in the pharmaceutical industry in the preparation of and synthesis of substituted tetrahydrothiophene derivatives 2- amino-3-(arylsulfonyl) thiophenes, potential antiviral and antitumor agents. The company is in the process of commencing the manufacturing of 2,5 DHT acquisition of land adjacent to the existing manufacturing facility.
The company has acquired around 22,000 square meter of adjacent land to the existing manufacturing facility for future expansion. Together with the existing land of around 29,000 square meter, the total land available with the company increases to around 51,000 square meter.
The company has successfully secured environmental clearance for manufacturing an aggregate of 44 products (including 9 current products) and increasing the quantity of products produced from 2,511 MT per month to 10,611 MT per month from the State Level Environment Impact Assessment Authority, Government of Gujarat.
The Q2FY21 revenue for the company stood at Rs 61.5 crore. EBITDA at Rs. 23.3 crore, growth of 19.3% on YoY basis and PAT at Rs. 15.6 crore, growth of 14.4% on YoY basis.
Commenting on the results, Kamal Aggarwal, Chairman & MD said, “There has been a robust demand for pharma products across the globe and the position of Indian pharma companies has been elevated. Being a pharma chemical manufacturer, we have seen a strong traction among the pharma chemical products which showcase our market leadership across the globe. Due to softness in the oil & gas industry, we have seen lower revenue for oil well chemicals in Q2 FY21. However, we have seen significant recovery from October 2020 onwards."
"Pharma Chemical products HMDS & CMIC reported healthy growth for the quarter. Incase of CMIC, there has been huge volume growth coupled with price increase on YoY basis. For HMDS, the volume has remained stable with slight decrease in prices on YoY basis. Our profitability on an absolute per tonne basis for HMDS remained stable," commented Aggarwal.
"We foresee business momentum to continue led by our recent capacity expansion of P2 and P7 Plant, new product launch, land acquisition and product approval from government authorities for 44 products which includes 9 current products. Being a global leading manufacturer of pharmaceutical chemicals and a leading manufacturer in India of oil well completion chemicals, we are in a strong position to encapsulate the upcoming opportunities buoyed by a long standing relationship with customers,” added Aggarwal.
