Objects of the issue:
- To carry out Offer for Sale.
- Repayment Redemption or earlier redemption, in part or full, of NCDs issued by the Company.
- General Corporate purposes.
Investment Rationale:
Market leadership and opportunities to further expand
The company has been a market leader in speciality marine chemicals since 2013 and is also the largest exporter of bromine and industrial salt by volume. Also, it has one of the lowest costs of production globally for both of these products. The company has long-standing relationships with its international as well as domestic clientele and huge room to expand due to its robust infrastructure capacity and demand for the products. It has also expanded its bromine capacity with an addition of a feed enrichment section. The company also is the only manufacturer of sulphate of potash that has a great demand due to its use in fertilizers and certain medical uses.
High Barriers to entry into the industry
The speciality chemical industry has high entry barriers viz. High cost of production and manufacturing, scarcity of raw materials, a significant investment for salt beds etc. The company is already well-established in the industry and has numerous customers globally. Also, other barriers such as stringent regulatory and quality standard requirements from the end user increase the competition for customer acquisitions. The company has developed a strong relationship with its clients which makes it difficult for other players to enter the industry.
