Galaxy Surfactants: Information Analysis

Note: This article has no recommendation to either buy or avoid this IPO. Instead, we have presented all the relevant information based on which you can make your own decision. About the company Incorporated in 1986, Galaxy Surfactants is a manufacturer of surfactant (Used to remove dirt from surfaces) and other speciality ingredients which primarily caters to personal care and home care industries. Its products are primarily used as raw materials for shampoos, sunscreens, conditioners, body wash, soap bars, liquid soaps, toothpastes, laundry and dishwashing detergents. Its client list includes FMCG companies like Cavinkare Private Limited, Colgate-Palmolive (India) Limited, Dabur India Limited, Henkel,Himalaya, L'OREAL, Procter & Gamble Home Products, Reckitt Benckiser, Ayur Herbals (Private) Limited, Jyothy Laboratories and Unilever.Currently, its product portfolio comprises of over 200 product grades with 1,700 customers in over 70 countries. Currently, it has seven manufacturing facilities out of which five are located in India and two are located overseas (USA and Egypt). It also holds 10 patents in USA and 2 patents each in China, India, The European Union, Japan and Russia. It operates in two segments: Performance Surfactants and Speciality Care. Performance Surfactants includes anionic and non-ionic surfactants and Speciality Care products includes amphoteric,cationic, UV filters, preservatives and preservative blends. Of the two segments, Performance Surfactants constitute 67.3 per cent while Speciality care products constitute 32.7 per cent of its total sales volume,as on September 30, 2017. Speciality care products carry higher margins, so the company plans to increase its focus on this segment in the future. Industry outlook - As per prospectus Global personal care market is expected to grow by 5.8 per cent with skin care and cosmetics sector growing the fastest at a rate of 6.7 per cent and 6.5 per cent respectively during 2018-24. Whereas personal care market in India is expected to grow at a rate of 7.9 per cent during 2018-24 from Rs 90,000 crores to 1,43,000 crores. Home care market in India is expected to grow at a rate of 7.2 per cent during 2018-24 from Rs 18,000 crores to 27,500 crores. Indian surfactants market in which Galaxy operates is expected to grow at 6 per cent from Rs 10,200 crores to Rs 14,500 crores during 2018-24. Where is the