This small-cap chemical maker is a bright spot in a dull chemical industry

Published: 03rd Sep 2024 By: Value Research

A struggling chemical industry

[{"selector":"#anim-97abbcdf-3c2e-46c9-82d0-d0e78cefeec3","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4735ad8d-e6ff-486f-98fb-05a60f40f9f7","keyframes":{"transform":["translate3d(-115.04703%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-38dbd978-3a5a-4726-9ccc-e33cb69c0c1b","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4e8afe0c-e978-417a-b542-3a11e0e5a614","keyframes":{"transform":["translate3d(-115.01598%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Indian chemical manufacturers are facing stiff competition from cheap Chinese products and a tough economic climate. Amidst these threats, one small-cap company is defying the odds.

The oddity

[{"selector":"#anim-442829a1-8736-4d2c-9648-31de6d18adc0","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0c11aaa2-a851-4d4b-a94f-a2587d445cfd","keyframes":{"transform":["translate3d(-114.10658%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fc161b48-9ebc-4ffd-873a-055b3307d501","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ec8ae206-1ef6-4c00-bab0-5dad7673fe8c","keyframes":{"transform":["translate3d(-115.01598%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Despite the headwinds, Anupam Rasayan is thriving. It has maintained a robust median operating profit margin of 20 per cent in the past five years. How? We will discuss this in the following slides.

The success mantra

[{"selector":"#anim-2085140d-6c41-4938-98cc-496a7ed74c46","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3b9a5531-f4a7-4cd5-9243-f943d44889c0","keyframes":{"transform":["translate3d(-114.10658%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f5c93f21-345e-417d-aad2-f455a71ac478","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-976a2103-a873-4710-bba3-1f2b73da624b","keyframes":{"transform":["translate3d(-115.01598%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] To minimise the impact of cheap Chinese imports, Anupam Rasayan has focussed on high-quality, custom synthesis of agrochemicals tailored to the specific needs of its clients.

Most useful investment tools

Best Mutual Funds Fund Screener Stock Screener SIP Calculator

Foray into fluorination

[{"selector":"#anim-389a4718-e91f-48d3-8345-ef5013788a3f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0b808b80-501d-4a44-8556-1db8f19c99df","keyframes":{"transform":["translate3d(0px, 150.42237%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Anupam Rasayan ventured into fluorine-based chemicals but initially faced setbacks due to raw material shortages. In 2022, it acquired Tanfac, a key raw material producer. This enabled it to become the only Asian manufacturer of certain fluorine-based products.

A promising future outlook

[{"selector":"#anim-58da4cf5-7f6a-4124-a7d6-3a043fe7d087","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-848be3d2-9803-453f-9335-2880d62e4614","keyframes":{"transform":["translate3d(0px, 210.48804%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Looking ahead, Anupam Rasayan plans to supply fluorine-based products to pharma companies. Tapping into the market worth over $15 billion would promise substantial future growth.

Consider the risks before investing

[{"selector":"#anim-4a0c6d44-ecb1-4c72-8ca8-dca3cd64896e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cc78f45b-b10d-4a1d-b9bb-ab66dbb38e99","keyframes":{"transform":["translate3d(0px, 227.31045%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] While Anupam Rasayan promises a smooth growth trajectory, there are potential bumps ahead. To learn more about these risks, click below to read the full story: Analyst's Diary: How to win against Chinese dumping

Other Webstories

[{"selector":"#anim-e133aa97-abbc-471a-a009-02eb244542ce","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b94db633-0833-4d09-a0e7-74cba858906a","keyframes":{"transform":["translate3d(-125.51724%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-658d78e9-c8df-47bf-8dee-b39f0c08526d","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-22ed2964-217e-4258-a648-9e94639c24a5","keyframes":{"opacity":[0,1]},"delay":400,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bb2193b6-8dcc-49f1-a6f2-cbb7829dee2f","keyframes":{"transform":["translate3d(-194.52735%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-23f70d6b-3c50-401b-b701-dd0a52435dbc","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0078e737-f806-4a25-8979-57f6bca1becb","keyframes":{"transform":["translate3d(-125.51724%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Click Here